Serbia is set to launch a manufacturing facility in collaboration with Israeli defense company Elbit Systems this September. This new plant aims to produce drones that will enhance Serbia’s defense capabilities and expand its market for unmanned aerial systems and military equipment.
Details of the Upcoming Drone Manufacturing Plant
During a recent press conference attended by Ukrainian President Volodymyr Zelensky, Serbian President Aleksandar Vučić announced that the new drone factory is expected to open between September 15 and September 20. While Elbit Systems has not provided extensive details about the venture, the agreement outlines that Elbit will maintain a 51% controlling interest in the facility. The remaining share will be held by Serbia’s state-owned weapons manufacturer, SDPR. The production facility, situated in the Simanovci industrial zone near Belgrade, is anticipated to focus on short-range combat drones as well as sophisticated unmanned systems capable of longer-range operations and electronic warfare strategies.
Serbia’s Shift Towards Modern Military Equipment
In recent years, Serbia has actively sought to modernize its military by acquiring advanced weapons and technology from Europe, Israel, and China, effectively replacing outdated Soviet-era materials. This strategic shift aims to align Serbia’s armed forces with contemporary warfare paradigms. Through this partnership with Elbit, Serbia underscores its commitment to enhancing its military capabilities, marking itself as a significant player in the defense sector.
Despite not being a member of the European Union or NATO, Serbia has grown increasingly close to Israel, cultivating a vital partnership in military technology. In April, Vučić first detailed plans to co-produce combat drones with Israel. Shortly after, both countries’ foreign ministers announced a free trade agreement and the initiation of a strategic dialogue aimed at solidifying their bilateral ties.
Previous Collaborations Between Serbia and Elbit Systems
This latest venture follows Elbit’s significant five-year defense contract with Serbia, valued at $1.64 billion, which was finalized in August of the previous year. The contract encompasses a wide array of defense technologies, including long-range precision strike artillery, AI-powered unmanned aerial systems, and individual tactical drones. In addition, the agreement incorporates various advanced systems focused on intelligence, surveillance, and reconnaissance (ISTAR), as well as communication and signal intelligence technologies, enhancing Serbia’s strategic capabilities.
In early 2025, Serbia further expanded its defense acquisitions by purchasing Israel’s PULS artillery systems and Hermes drones from Elbit for $335 million. This influx of modern military assets signifies Serbia’s ongoing commitment to upgrading its defense infrastructure while establishing itself as a regional force.
Through strategic partnerships and investments in cutting-edge military technology, Serbia is not only modernizing its forces but also positioning itself as a vital hub for defense manufacturing in the Balkans. As the global defense landscape continues to evolve, Serbia’s collaboration with Elbit Systems is poised to significantly bolster its operational capabilities and export potential in the unmanned systems sector.