Israel enhances air defense with new Iron Dome and Iron Beam orders
Israel enhances air defense with new Iron Dome and Iron Beam orders
Massive U.S. security aid accelerates procurement of interceptor missiles and advanced laser technology to defend against evolving threats.
The Ministry of Defense has continued its efforts to bolster Israel’s defense capabilities amidst the ongoing war by placing a significant order for interceptor missiles for the Iron Dome air defense system. The missiles will be supplied by Rafael Advanced Defense Systems, the primary developer and manufacturer of the system.
This is the first deal financed through the special U.S. security assistance package, amounting to $8.7 billion, provided to Israel by outgoing President Joe Biden. Of the total aid, $5.2 billion has been allocated to strengthen Israel’s air defense systems. These funds will be used to procure additional interceptor missiles for the Iron Dome, David’s Sling, and the newly developed laser-based defense system Iron Beam. All three systems are designed and produced by Rafael.
The agreement signed on Thursday between the Ministry of Defense Director-General Eyal Zamir and Rafael CEO Yoav Turgeman focuses exclusively on the procurement of Iron Dome interceptors. While the Ministry of Defense did not disclose the exact value of the deal, it emphasized that the scope of the acquisition is significant.
Additional agreements are expected in the near future, including contracts to equip the David’s Sling system with interceptors and to supply the innovative laser-based defense system, known as Magen Or (Iron Beam). The laser system, which is expected to be operational within months, will serve as a complementary layer to the Iron Dome, focusing on intercepting short-range threats.
Since the outbreak of the current war, the Iron Dome has played a critical role in protecting Israeli civilians from rocket fire originating in Gaza and Lebanon. It has also been instrumental in countering threats from anti-aircraft missiles, demonstrating its versatility and importance within Israel's air defense network.
Rafael has already experienced substantial growth in its operations. In the third quarter of last year, the company reported a 65% surge in net profits, reaching approximately NIS 190 million. Its order backlog now exceeds NIS 60 billion.
In October, the Ministry of Defense placed a NIS 1.2 billion order to accelerate the development and initial production of Iron Beam, in partnership with Elbit Systems, which received a parallel order worth $200 million for its contributions to the project.
Just two weeks ago, the Ministry of Defense also issued an unprecedented order to Israel Aerospace Industries (IAI) worth several billion shekels for the production and supply of numerous Arrow 3 interceptor missiles. Although the exact value of this order was not disclosed, industry estimates place the cost of a single Arrow 3 missile at $2–3 million.
The Arrow 3 system has been deployed effectively in recent months, intercepting ballistic missiles launched by Iran toward Israel in April and October last year. It has also been a key component of Israel’s defense against missile attacks launched by Houthi rebels in Yemen.