Israel to acquire more KC-46A refuelers, invest $1.5 billion in armored vehicles

JERUSALEM — The Israeli Ministry of Defense recently announced major defense acquisition plans, including two additional KC-46 refueling tankers, a substantial investment in armored vehicles, as well as a push to acquire thousands of first-person-view unmanned aerial vehicles.

The ministry said on Wednesday that Director General Maj. Gen. Amir Baram had sent instructions to sign the contract for the new refuelers, manufactured by US aerospace giant Boeing, once approval of the Israel Defense Procurement Ministerial Committee is obtained.

The ministry said the “new aircraft will be equipped with Israeli systems and adapted to the Israeli Air Force’s (IAF) operational requirements.” 

The IDF has been relying on aging Boeing 707s for long-range missions as it fights conflicts on several fronts since Hamas’s Oct. 7, 2023 attack, including striking as far away as Yemen to hit Houthi targets and a dramatic 12-day war against Iran. The Iran strikes required roundtrip 2,000-mile flights.

RELATED: US Air Force to forego tanker competition, sole-source more KC-46s from Boeing

The new contract for the refuelers is estimated at $500 million and is being funded through US financial aid, the ministry said. The ministry also said this represents a milestone in “the extensive force buildup that the [ministry] is conducting for the IDF.”

“The fifth and sixth refueling aircraft will strengthen the IAF — the IDF’s long-range strategic arm — enabling it to reach distant theaters with greater force and scope,” Baram said. 

Ido Nehushtan, a former Israeli Air Force commander who now is president of Boeing Israel added that Boeing “takes pride in its longstanding partnership with Israel, a relationship that dates back to the nation’s establishment. The KC-46A tanker aircraft will provide the world’s most advanced multi-mission aerial refueling capability to the IAF.”

Big Money For Armored Vehicles And Drones

The same day that the ministry announced it would move forward on the refuelers, Israel’s Ministry of Defense Israel Katz and Baram also said they had presented a 5 billion shekel ($1.5 billion USD) investment plan to the Israel Defense Procurement Committee “with a comprehensive plan to accelerate production of Israeli armored vehicles and increase their capacity by dozens of tanks and APCs over the next five years,” the ministry said in a statement. This builds on previous recommendations and investments that were outlined in 2024 for the IDF as part of a major force building effort.

The investment in the armored vehicles will come under the Armored Vehicle Acceleration Project, which the ministry said is led by the its “Merkava and Armored Vehicles Directorate (MANTAK), in collaboration with the Defense Procurement Directorate (DPD), Planning Department, and the IDF’s Ground Forces and Technological and Logistics Directorate.” The goal is to supply the IDF with more Merkava IV Barak tanks, the latest model of the Merkava IV. 

In addition, more Namer and Eitan APCs will be supplied. The Namer is a heavy tracked APC that is built on a Merkava chassis, while the Eitan is a new wheeled APC that began operations in 2023. The Eitans will be equipped with 30mm cannons, the ministry noted in its statement.

The investment in more tanks comes as the IDF is calling up 60,000 reservists for a new offensive in Gaza. The IDF armored corps has been pressed into service throughout the war, and the IDF has increased the number of regular army companies of tanks. However, this has strained the reserve system, a report in Hebrew media’s Army Radio noted this week. The IDF is now reportedly returning elements of the 4th reserve armored brigade to use Markava III tanks in order to enable training to continue to with the Merkava IVs. The Merkava IV was first rolled out in 2001 and has been in service with all of Israel’s regular armored brigades since 2016. Announced in 2018, the latest Merkava IV Barak was unveiled in 2023 for the IDF.

The ministry said that its new accelerated armored vehicle program will “be carried out in parallel with an expansion of domestic production infrastructure, as part of the defense-industrial base resilience strategy initiated by the IMOD Director General.” The statement noted that “this effort involves expanding production in industries across Israel that contribute to the Merkava program, many of which are located in peripheral regions, and improving the infrastructure of the IDF’s depot production facility.” 

The decision by the ministry will now go to the Knesset Joint Committee for Defense Budget. “Following its approval, the IMOD will be able to proceed with signing procurement contracts with dozens of companies worth billions of shekels,” the ministry said.

“The Swords of Iron War [the Gaza conflict] proved how critical Merkava tanks and Namer and Eitan APCs are for successful IDF ground operations. Today’s approval of this over NIS 5 billion armored vehicle acceleration project is a strategic decision that maintains the IDF’s qualitative military edge and our ability to prevail in any arena,” Katz said. “This project strengthens both the IDF’s capability and hundreds of defense companies nationwide, many in Israel’s periphery — demonstrating how national security and economic growth go hand in hand. We won’t compromise on Israel’s security and will keep investing in our forces to protect the nation’s future.”

In addition to the vehicles and refuelers, the ministry also said that it is investment millions of dollars in thousands of FPV drones made by XTEND. They will be equipped with advanced technology, the ministry said. Baram has also pushed this program, and the ministry describes it as part of the investment in Israeli “blue and white” local companies.

“The drones will be delivered to the IDF over the coming months alongside comprehensive training and instruction programs provided by the company, and are expected to significantly enhance the operational capabilities of the Ground Forces while delivering optimal solutions to modern warfare challenges,” the ministry noted.