U.S. Approves $180M Deal to Power Israel’s Eitan Armored Vehicles

The U.S. State Department has approved a $180 million foreign military sale to Israel for Eitan Powerpack engines on April 14.

The deal, announced by the Defense Security Cooperation Agency (DSCA), includes the delivery of 8V199TE21-D diesel engines and related equipment for Israel’s Eitan Armored Fighting Vehicles (AFVs). Rolls-Royce Solutions America, based in Novi, Michigan, will serve as the principal contractor.

This agreement builds on a prior $85.5 million contract and is aimed at enhancing the Israel Defense Forces’ (IDF) mobility, survivability, and response capability in modern combat settings. The Eitan vehicle, designed to replace the aging M113 armored personnel carriers, is equipped for operations in both urban and rugged terrains. Its features include modular armor, a high-power engine, and the Iron Fist active protection system.

The heart of the deal—the 8V199TE21-D engine—produces around 750 horsepower and is coupled with an Allison 4800 SP transmission. The powerpack is designed for efficiency and endurance in extreme conditions such as the Negev Desert and Golan Heights.

Israel first unveiled the Eitan in 2016 as part of a broader push to modernize its ground forces following lessons from the 2006 Lebanon War and subsequent conflicts in Gaza. Its wheeled design contrasts with heavier tracked vehicles like the Merkava and Namer, offering faster speeds and greater adaptability. The Eitan can carry 12 troops and may be outfitted with 30mm cannons or Spike anti-tank missiles.

The U.S. has long provided Israel with security assistance, including $3.8 billion annually under a 2016 agreement. While this engine deal is smaller in scale, it reflects Washington’s continued commitment to maintaining Israel’s military edge.

Rolls-Royce Solutions America, a U.S.-based subsidiary of Germany’s MTU Friedrichshafen, benefits from the contract through job retention and expanded defense sector activity in Michigan.

Regional implications remain uncertain. While Egypt and Jordan maintain peace accords with Israel, groups like Hezbollah, which possess large rocket stockpiles, may view the Eitan’s deployment as escalatory. Analysts also note that the Eitan’s presence could influence adversaries to seek upgraded capabilities.

The sale is expected to move through U.S. congressional review without major opposition, though some lawmakers may raise concerns about regional arms escalation.

Looking ahead, the Eitan’s diesel powerpack may eventually be replaced or supplemented by hybrid-electric systems, which are being explored by both the U.S. and Israel for improved fuel economy and stealth.

As the IDF expands its Eitan fleet, officials emphasize the vehicle’s dual use as both a troop carrier and mobile command hub. Exercises in southern and northern Israel have demonstrated its role in rapid response missions and battlefield coordination.