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The Islamic State (ISIL) extremist group in control of parts of Syria and Iraq began issuing ID cards to facilitate passage between the two countries and raise morale among battle-weary militants, local media reported on Tuesday, according to Sputnik.

According to US Department of Defense estimates, released early on Tuesday, ISIL has lost up to one-third of the ground it had gained since its "peak" in August 2014. A 62-nation coalition led by the United States has been conducting airstrikes against the group since last fall alongside the Iraqi forces' recent ground offensive.

"They [ISIL leadership] want to convince their militants that they're capable of overcoming the current challenges," Syria's ARA News reported, citing a civil rights activist in the northern Iraqi city of Mosul, which ISIL captured last June.

The activist, who was quoted on condition of anonymity, said the group's new identity cards are a "step to raise the insurgents' morale" amid ongoing losses sustained on the battlefield.

"This could suggest to the group's members that their leadership is still strong and heading towards the institutionalization of the state through the issuance of such ID cards," the activist told the news outlet.