Industrial Cooperation Deal Between Israel and Lockheed Martin Extended to 2029

Lockheed Martin and Israel’s Industrial Cooperation Authority (ICA) have extended their industrial partnership through 2029, marking a renewed commitment to Israeli trade, innovation, and defense cooperation. The American aerospace and defense giant announced the agreement at a ceremony attended by Israeli and U.S. officials, including Economy Minister Nir Barkat and Lockheed Martin COO Frank St. John.

The deal continues the Umbrella Industrial Cooperation Agreement (UICA) framework, which facilitates Lockheed Martin’s business activities in Israel while promoting investment in local industry. Since the partnership began in 2005, Lockheed Martin has invested over $4 billion in the Israeli economy.

Minister Barkat praised the extension as “a clear vote of confidence in Israeli industry,” noting that it boosts national security while fueling economic growth. “This collaboration strengthens Israel’s security, creates new engines of economic growth, and brings investments that provide significant opportunities for local industries to expand and increase exports,” he said.

Under the current UICA signed in 2020, Lockheed Martin invested over $470 million in Israel, including in education initiatives. In 2022, the company launched kindergartens in northern Israel aimed at promoting early STEM learning, a project hailed by then-Education Minister Yifat Sasha-Biton.

Frank St. John emphasized that the extended agreement enables deeper industrial cooperation, citing “high-impact STEM initiatives” and a broader Israeli footprint as key benefits.

Lockheed Martin supplies Israel with advanced aircraft such as the F-16 and F-35 fighter jets and recently partnered with Israel’s Rafael defense firm to adapt the Iron Beam laser defense system for the U.S. market.

The announcement comes amid a boom in Israeli defense exports, which surpassed $14 billion in 2024 despite wartime conditions and embargoes from countries like Canada and Spain. Germany recently unveiled plans to deploy Israel’s Arrow 3 missile defense system in a $3.6 billion deal, underscoring Israel’s growing profile as a global defense exporter. Share this article or subscribe to our newsletter for updates.