Rafael Receives $5.2B US-Funded Air Defense Contract from Israel’s Defense Ministry

Israel’s Ministry of Defense has awarded a $5.2 billion contract to Rafael Advanced Defense Systems to bolster the nation’s air defense capabilities. The deal, financed through $8.7 billion in US military aid approved by Congress in April 2024, is set to enhance systems like Iron Dome, David’s Sling, and the new Iron Beam laser interception technology.

Iron Dome, developed by Rafael and produced in partnership with Israel Aerospace Industries’ Elta division and mPrest, has proven critical during conflicts like the Swords of Iron war. It provides essential protection against short- and medium-range rocket and missile threats, as well as UAVs. On October 7, it defended against some 3,000 rockets launched by Hamas, serving as the lowest layer of Israel’s multi-tier air defense array.

Above Iron Dome sits David’s Sling, designed to intercept medium-range threats. In a collaboration showcasing Israel’s defense innovation, its MMR radar, developed by Elta, outperforms even the US Patriot system, while its Golden Almond command and control system is produced by Elbit Systems’ Elisra subsidiary. David’s Sling saw its first operational interception in May 2023.

A highlight of the agreement is the operational deployment of Iron Beam later this year. This ground-based laser system, led by Rafael and supported by Elbit Systems, targets short-range threats like rockets, mortar bombs, UAVs, and cruise missiles. Iron Beam’s cost-effectiveness sets it apart, with per-interception costs significantly lower than Iron Dome’s $30,000 per rocket. While it won’t entirely replace Iron Dome, it will provide an economical and efficient complement.

The US Missile Defense Agency plays a key role in the development and production of these systems, demonstrating the deep partnership between the two nations. These advancements not only strengthen Israel’s security but also reflect the country’s technological leadership in defense.

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