Defense Ministry works toward future of Israel’s defense sector, plans for munitions independence

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As orders from Israeli defense tech companies reached approximately $330 million in exports, the government met on Thursday with CEOs of some of the country’s top defense startups to discuss Israel’s defense strategy, which includes munitions independence, pushing for the development of “the next surprises,” and increasing defense exports.

The meeting was headed by the Defense Ministry Director General, Maj. Gen. (Res.) Amir Baram, with participation from CEOs of roughly 20 leading defense-tech companies.

According to a statement, Baram explained Israel’s long-term plans for the defense industry, with the main objectives being advancing Israel’s munitions independence, strengthening its qualitative and technological defense edge, and deepening cooperation with the defense establishment.

During the meeting, the ministry also unveiled that the $330 million estimated in orders to companies in the sector represents double the amount registered in the same period of 2025.

“One of our strategic goals is munitions independence in critical components – we cannot allow our operational capability to depend on a supply chain we do not control,” Baram explained. “This is a process that takes time, but it begins with the decisions we make every day, and you, the startups, are part of that solution.”

Defense Ministry's Director General, Maj. Gen. (Res.) Amir Baram with leaders of Israel's top Defense-Tech companies. (credit: ISRAEL DEFENSE MINISTRY)

The meeting was attended by the Head of the Defense Research and Development Directorate, Brig. Gen. (Res.) Dr. Daniel Gold, the Head of the Budget Department and Economic Advisor to the IDF Chief of the General Staff, Brig. Gen. Nir Weingold; the Deputy Director General and Head of the Planning Department, Racheli Chen; the Deputy Director General and Head of the Defense Procurement Directorate, Ze’ev Landau; and additional senior officials.

Companies represented at the forum included Xtend, SpectralX, SpearUAV, Intact, Dream, Ottopia, Skana, Airis, Esh-Tech, OZ, Kela, ShiftersAI, Next Dim, SmartShooter, Ondas, Classiq, Heaven Drones, and others.

Both startups and major manufacturers

Baram also explained that the path to munition independence would be reached only if both local startups and major defense manufacturers work together, with the government not interested in “choosing one or the other.”

“We want healthy competition that drives innovation and competitive pricing, and we want partnerships that allow small, agile capabilities to integrate into large, proven systems. This is a balance we expect every player in the industry to respect, in accordance with our code of ethics,” he said.

He also announced that Israel plans to assist every component of the defense-tech sector, including “entrepreneurs, venture capital investors, government funding, long-term contracts that provide certainty, and exports that open additional markets.”

At a time when Israel has seen pushback regarding its defense industry, especially in Europe, Baram has been instrumental in expanding Israel’s cooperation with other countries. He told the companies that the ministry plans to broaden the strategic partnership with the United States as well as other countries.

“Defense-tech is part of the State of Israel’s unique advantage, built on combat-proven capabilities that Israeli talent has successfully demonstrated on the battlefield time and again,” he continued.

As exports gain central stage, experts push for shipments to Australia

Amid this push by Israeli authorities to improve defense exports, experts at a Tuesday conference in Haifa about the defense-tech sector explained that local companies must take the opportunity of entering the Australian market.

The event was organized by HiCenter Ventures, an investment fund dedicated to accelerating Haifa’s technological entrepreneurial ecosystem, and the New Zealand-Israel Innovation Hub.

Ilana Averkin, head of defense-tech at HiCenter Ventures, said, “Israeli defense-tech startups should set their sights on the Australian and New Zealand markets. They offer a unique combination of massive available budgets, an urgent demand for innovation, and an opportunity to bypass the ‘valley of death’ found in the crowded US procurement market.”

Speakers at the event included Lior Hanuka, CEO of HiCenter Ventures; Josh Brown, Executive Director and Founder of the New Zealand-Israel Innovation Hub; Ilana Averkin, Head of defense-tech at HiCenter Ventures; and David (Dedi) Haziza, Founder and CEO of NexTenna.

“New Zealand and Australia are currently looking for smart, fast, and cost-effective solutions, such as software, AI, and automation, to integrate into the expensive platforms they have already purchased from the Americans, presenting major opportunities for Israeli startups,” Averkin added.

She also explained that a successful pilot in New Zealand or Australia can open the door to a deeper role in the defense establishments of the United Kingdom, Canada, or the United States, as the defense establishments of all these countries are fully integrated.

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