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Israel Approves $1.5 Billion Plan to Boost Tank and Armored Vehicle Production Amid Gaza Offensive

Posted On: 20-08-2025 | Politics
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Tel Aviv / PNN /

The Israeli government on Wednesday approved a $1.5 billion plan to increase production of “Merkava” tanks and armored personnel carriers, as the military prepares for an expanded campaign in Gaza, Hebrew media reported.

Defense Minister Yoav Gallant had previously proposed boosting production of “Merkava” tanks and armored personnel carriers of the “Namer” and “Eitan” models, with costs exceeding 5 billion shekels (around $1.47 billion). The plan aims to accelerate the manufacturing of armored combat vehicles, including dozens of tanks and carriers.

The announcement comes after Gallant approved a plan to occupy Gaza City in an operation called “Gideon Vehicles 2,” with recall orders issued for 60,000 reservists. According to Israeli channel i24, the military operation seeks to secure the release of all Israeli hostages, disarm Hamas, expel its senior leaders, secure Gaza, protect settlements, and maintain freedom of movement for the Israeli army.

The approval coincides with international efforts to negotiate a ceasefire and prisoner exchange. Hamas has reportedly agreed to a new mediator-backed proposal calling for a 60-day halt to military operations and a path toward a comprehensive peace agreement.

Despite this, the office of Prime Minister Benjamin Netanyahu said Israel’s stance remains unchanged, demanding the release of all 50 hostages in line with Security Cabinet directives.

Since August 8, Israeli forces have been implementing a gradual plan to reoccupy Gaza, starting with Gaza City. The operation has involved mass displacement of nearly one million residents, encirclement of the city, and incursions into residential neighborhoods.

Eyewitnesses reported that on August 11, Israeli forces attacked the Al-Zaytoun neighborhood in southeastern Gaza, demolishing homes with explosive-laden robots, shelling with artillery, firing randomly, and forcing civilians to flee.

Since October 7, 2023, Israel, with U.S. support, has carried out operations in Gaza that have resulted in widespread casualties and destruction. Official tallies report 62,064 killed, 156,573 injured, over 9,000 missing, hundreds of thousands displaced, and famine claiming 266 lives, including 112 children.

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