Defense Ministry awards Rafael $5.2b US-funded air defense contract

Mobile Iron Beam system  credit: Ministry of Defense spokesperson
Mobile Iron Beam system credit: Ministry of Defense spokesperson

The contract is being funded out of the $8.7 billion special military aid approved by the US Congress in April 2024.

Ministry of Defense director general Eyal Zamir and Rafael Advanced Defense Systems CEO Yoav Turgeman signed a first contract today financed by the $8.7 billion of special US military aid approved by the US Congress in April 2024. $5.2 billion of the aid is earmarked for strengthening Israel’s air defenses - Iron Dome, David’s Sling, and the Iron Beam laser interception system.

The Iron Dome system, developed in Israel and produced in conjunction with the US government, is intended to protect against short and medium range rocket and missile threats, and against UAVs. The system has been called into action a great deal during the Swords of Iron war, as the lowest layer of Israel’s multi-layer air defense array. On October 7, it furnished the main protection against some 3,000 rockets launched by Hamas.

Rafael is the chief developer of the Iron Dome system, in collaboration with Israel Aerospace Industries’ Elta division and mPrest. The US Missile Defense Agency is a leading partner in the development and production of Israel’s multi-layer systems, among them David’s Sling and the Arrow systems, and of components for Iron Dome.

David’s Sling forms the layer above Iron Dome, and is designed to intercept short and medium range threats. Its first operational interception took place in May 2023. The collaborative effort that produced it illustrates the collective strength of Israel’s defense companies. For example, its MMR (multi-mission radar) system, produced by Elta, is stronger than that of the US Patriot system. Its Golden Almond command and control system is produced by Elbit Systems subsidiary Elisra.

The third system to which the US funding is being applied is the Iron Beam laser system, due to become operational in the second half of this year. Iron Beam is a high-energy, ground-based laser system designed to meet a range of threats (rockets, mortar bombs, UAVs, and cruise missiles). The Directorate of Defense Research and Development ("Mafat") in the Ministry of Defense is leading the project together with Rafael, the chief developer, and Elbit Systems.

The system has already demonstrated its interception capabilities in a series of trials. It will complement rather than completely replace Iron Dome. Iron Dome is an interception system for rockets fired at a range of 40 kilometers, while Iron Beam is intended to cover threats at a range of up to 10 kilometers. One of its main advantages is its low operating cost. A single interception by Iron Dome costs about $30,000. Iron Beam will be able to replace it in at least some instances, at a small fraction of that cost. The Ministry of Finance has not disclosed the projected cost of using Iron Beam, but some indication can be obtained from other countries developing similar systems. The cost of an interception by South Korea’s Block I system, which has a range of three kilometers and an output of 20 kilowatts, is just $1.5. An interception by Britain’s DragonFire system is estimated to cost $13.

Published by Globes, Israel business news - en.globes.co.il - on January 16, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.

Mobile Iron Beam system  credit: Ministry of Defense spokesperson
Mobile Iron Beam system credit: Ministry of Defense spokesperson
Israeli startup gems 2022 Globes names Finout "Most Promising Startup of 2025"

Cloud cost management solutions company Finout tops the list of Israeli startups most likely to succeed named by 80 local and foreign funds.

Mobileye CEO Amnon Shashua credit: Heinz Troll European Patent Office Mobileye posts strong Q1, reaffirms guidance despite tariffs

The Israeli advanced driving assistance systems company beat analysts' expectations on revenue and met expectations on non-GAAP net profit.

Xtend drones credit: Xtend Sentrycs teams with Xtend to strengthen drone security

The aim of the all-Israeli collaboration is to create a synergy of proven capabilities in a world where drones have become a major threat.

Intel Haifa  credit: Shutterstock Intel layoffs in Israel will benefit rivals

Industry experts agree that Intel staff dismissed in Israel will have no trouble finding work at rivals like Nvidia, as happened during last year's layoffs.

Ministry of Finance Jerusalem credit: Shutterstock Treasury sees Trump's tariffs cutting Israel's GDP growth

Amid the uncertainty that still surrounds the level of tariffs that would ultimately be imposed on Israeli goods, the annual damage to growth is estimated by the Finance Ministry at less than 0.5% of GDP.

French President Emmanuel Macron at the Paris Air Show in 2023 credit: Reuters Israel to scale down Paris Air Show presence

Due to President Emmanuel Macron's antagonism, Israel is reducing its presence at the exhibition, Ministry of Defense International Defense Cooperation Directorate (SIBAT) head Yair Kulas tells "Globes."

Jerusalem court cmplex credit: Zarhy Architects Tenders issued for two huge Jerusalem construction projects

The PFI tenders for the Gan Hotzvim tech campus and the courts complex include grants of NIS 1.7 billion for the winning bidders.

Israel Innovation Authority CEO Dror Bin Innovation Authority chief: Israel top for deep tech investment

Dror Bin told the Globes TECH IL conference that deep tech is the next wave for global tech and the rate of investment in Israel is the world's highest.

Gil Shwed and Nadav Zafrir credit: Menash Cohen With new CEO Check Point beats analysts in Q1

Revenue rose 6.5% and GAAP net profit rose 5% in Nadav Zafrir's first full quarter at the helm.

Tel Aviv light rail credit: Yossi Cohen Rishon Lezion to finance Red Line light rail extension

The Rishon Lezion Municipality will pay for part of the extension by marketing land above the planned underground depot.

Intel Haifa development center credit: Shutterstock Intel to cut 20% of workforce - report

"Bloomberg" reports that new CEO Lip-Bu Tan will announce the layoffs this week.

Healthee team credit: Healthee PR AI healthcare costs management co Healthee raises $50m

Healthee’s benefits and care navigation platform empowers employees and employers to make the most of their health benefits.

Former Shufersal CEO Itzik Abercohen credit: Eyal Izhar Competition Authority summons former Shufersal CEO to hearing

According to the indictment, Shufersal and Itzik Abercohen allegedly made public statements through which he attempted to reach arrangements to raise prices.

Reco founders Ofer Klein, Gal Nakash, and Tal Shapira credit: Elegant Photographics Israeli SaaS security co Reco raises $25m

The Tel Aviv-based company has developed a comprehensive application discovery engine capable of identifying and classifying over 50,000 applications, and providing visibility into an organization’s SaaS ecosystem.

Tel Aviv Stock Exchange credit: Tali Bogdanovsky TASE outperforms global markets in 2025

Boosted by the strong results of Israel's banks, the Tel Aviv Stock Exchange has demonstrated impressive resilience to domestic and foreign upheavals.

Metro credit: Bar Lavi Can Hyundai fill Metro vacuum created by China's exclusion?

The South Korean giant is reportedly eager to enter Israel's infrastructure sector but may not have the resources to dig the Metro tunnels.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018