Germany Expands Arrow 3 Missile Defense With USD 3.1B IAI Contract

Germany Arrow 3 Missile Defense Expansion Confirmed

Germany has signed a USD 3.1 billion follow-on contract with Israel Aerospace Industries to expand its Arrow 3 missile defense program, marking a major step in strengthening national and European air and missile defense.

The agreement builds on the landmark 2023 government to government deal between Germany and Israel, which was approved by the United States and described as Israels largest defense export to date. The follow-on contract covers additional systems, support, and program expansion for the Arrow 3 interceptor, according to reporting by Defence Industry Europe and statements from IAI.

Strengthening Long Range Missile Defense

Arrow 3 is an exo-atmospheric interceptor designed to destroy long range ballistic missiles outside the Earths atmosphere. The system is jointly developed by Israel and the United States, with Boeing playing a key role in the program.

German officials have positioned Arrow 3 as a cornerstone capability for defending against emerging ballistic missile threats, particularly those with extended range. The system is expected to provide coverage well beyond German territory, contributing to collective defense across central Europe.

Role in the European Sky Shield Initiative

The Arrow 3 missile defense program is a central pillar of Germanys European Sky Shield Initiative, which aims to create a layered, multinational air and missile defense architecture across Europe.

While Germany leads the procurement, the system is intended to complement lower tier defenses such as Patriot and IRIS T SLM, creating a multi-layer shield against ballistic and cruise missile threats.

Program Timeline and Industrial Partners

Initial operational capability for Germanys Arrow 3 missile defense system is planned for later this decade. Infrastructure work, training, and system integration are already underway.

Israel Aerospace Industries serves as the prime contractor, with U.S. industry participation and U.S. government approval reflecting the systems joint development and strategic importance.

Strategic Significance

The USD 3.1 billion follow-on contract underscores Germanys long term commitment to missile defense modernization amid growing regional security concerns. It also reinforces defense cooperation between Germany, Israel, and the United States at a time of increased focus on integrated air and missile defense across NATO.