Israel has awarded Elbit Systems a $210-million contract spanning six years to deliver a major technological upgrade for the Merkava main battle tank fleet. Rather than focusing solely on hardware replacement, the modernization emphasizes next-generation sensing, targeting, and situational awareness systems to keep the platform effective in fast-evolving battle conditions.Under the agreement, Elbit will install AI-driven electro-optical sights, 360-degree observation tools, and improved target acquisition and tracking systems. The package includes comprehensive sustainment support to ensure long-term operational reliability.The Merkava series, a central asset of Israel’s ground forces since the 1970s, is known for its survivability-oriented layout and heavy protection. Enhancements introduced through this contract will expand its capabilities in multi-domain warfare, giving crews improved visibility, precision, and resilience in environments shaped by drones and electronic threats.The deal fits into Israel’s broader effort to accelerate ground fleet modernization during ongoing military operations. Alongside new production initiatives worth over $1.5 billion, the Ministry of Defense has also strengthened domestic manufacturing of advanced infrared sensors for deployment across air, land, and space systems.
