Israel signs $500 million deal to expand Iron Beam laser air defenses

JERUSALEM — Israel’s Ministry of Defense announced today that it had signed a $500 million deal with Rafael and Elbit to expand production of the Iron Beam laser air defense system, set to come online next year.

“The system is expected to integrate into Israel’s multi-layered defense array as a complementary capability to the Iron Dome system. This integration will significantly enhance Israel’s defense capabilities against current and future threats while offering substantially lower operational costs,” the ministry said in a statement. Iron Dome is the lowest layer of Israel’s three-layered system, responsible for taking out rockets, drones and other shorter range threats.

The ministry, which has led the development of the system, called the deal a “major milestone” in a statement. Rafael makes the Iron Dome, and Elbit, which said it is receiving $200 million in the new deal, is expected to supply the high-energy laser system. The laser will be able to counter various types of threats from rockets to mortars, UAVs and also cruise missiles, the ministry said.

All eyes have been on Israel’s air defenses as it battles Iranian proxies on multiple fronts, from Hamas in Gaza to Hezbollah in Lebanon to the Houthis in Yemen — each of whom is capable of lobbing rockets, missiles, mortars or drones towards Israeli targets — in addition to Iran itself, which has twice launched missile and drone barrages. Today alone, the Israel Defense Forces said “approximately 115 projectiles fired from the Hezbollah terrorist organization crossed from Lebanon” into Israel.

Israel’s push for laser defenses predates the current conflict, and in 2022 then-Israeli Prime Minister Naftali Bennett said tests had been completed on the Iron Beam system, calling it a “game changer.”

Eyal Zamir, Director General of the Israel Ministry of Defense, said today that the new contract is “among our most significant agreements.”

“The Iron Beam deal will ensure continued and accelerated procurement of many additional laser systems.”

This is part of a much larger procurement drive worth “billions of dollars” the Ministry noted. Israel calls the focus on local domestic production of new systems “blue and white” procurement, emphasizing the large funds spent on local defense industries.

“The capabilities developed at Elbit that will be integrated into Iron Beam represent a quantum leap in future defense technology against various threats,” Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, said. He pointed out that the development of laser technology “is another significant step in maturing Elbit Systems’ diverse capabilities in transforming and advancing defense and warfare technologies.”

The Iron Beam development comes amid other Israeli initiatives relating to lasers, countering drones and financing air defenses. Rafael announced that it had developed a smaller laser air defense system called Lite Beam at AUSA in early October. The smaller system can be mounted on vehicles.

On Oct. 15, the Israeli Ministry of Defense hosted an event in the Negev desert at which eight Israeli companies showcased their innovations to counter different types of UAV threats. In addition on Oct. 21 the Ministry announced that it had completed an exchange of letters with the US “initiating the implementation of a special emergency aid package totaling $5.2 billion to strengthen Israel’s air defense system[s]. This strategic support will enhance and expand Israel’s Iron Dome, David’s Sling, and the developing ‘Iron Beam’ laser defense system,” the Ministry said at the time.