US may fund armored vehicle plant in 'Israel': Report
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- US may fund $2 billion armored vehicle plant in 'Israel' using military aid.
- Project aims to expand Merkava tanks and Nammer and Eitan APCs production after Gaza and Lebanon wars.
Documents obtained by Haaretz reveal that the US could finance the construction of a new armored vehicle manufacturing plant in 'Israel' with up to $2 billion in military aid, according to internal US government presentations and documents, including slides from the US Army Corps of Engineers.
Project details
The 'Israeli' Ministry of Defense recently announced the "Armored Vehicle Production Acceleration Program," aimed at increasing production of Merkava tanks and Nammer and Eitan armored personnel carriers to address shortages and heavy losses in the recent Gaza and Lebanon wars.
The ministry estimated the total cost at over $1.5 billion, without specifying any foreign funding. Haaretz noted that this contradicts previous 'Israeli' statements about reducing reliance on US military aid.
While the US Army confirmed no official decision has been made yet, the 'Israeli' defense ministry declined to comment on potential US funding.
US involvement
Two documents from the US Army Corps of Engineers indicate Washington may play a central role in funding the project. One presentation, shown last October at a Middle East contractors’ conference, outlined plans for a "joint military systems manufacturing center" in 'Israel', costing between $1 billion and $2 billion and fully funded through US military aid.
The project was mentioned again in a November presentation as a core component of the armored vehicle acceleration program. If approved, US companies would compete as primary contractors, while 'Israeli' firms could participate as subcontractors for fieldwork.
The Army Corps of Engineers regularly carries out US-funded infrastructure projects for allies, including military bases, airfields, and other strategic installations.
Military aid and implications
In recent years, billions in US aid have been spent on 'Israeli' military infrastructure. The current military aid agreement, which provided 'Israel' $38 billion over ten years, is set to expire in 2028. A Congressional report cited by Haaretz notes that the US spent around $32 billion supporting 'Israel' in the past two years, including $21.7 billion in direct aid and a $26 billion special military package approved last year.
Prime Minister Benjamin Netanyahu has stated he supports gradually reducing US security assistance over a decade, amid growing criticism in the US over the level of aid provided during ongoing conflicts in Gaza and Lebanon.
