Arrow 3 is an exo-atmospheric anti-ballistic missile defence system. Credit: Israel Ministry of Defense.

Germany’s federal parliament, the Bundestag, has cleared an expansion of the country’s Arrow 3 missile defence procurement from Israel, lifting the overall value of the bilateral deal to about $6.5bn (€5.5bn.

The expansion, worth roughly $3.1bn, will supplement the initial purchase deal signed around two years ago for around $3.5bn.

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The Israel Ministry of Defense (IMOD) and the German Federal Ministry of Defense (BMVg) agreed to substantially boost production rates of Arrow 3 interceptors and launchers that will be supplied to Germany.

The signing of the expanded contract is scheduled to take place in Germany on 18 December 2025. Israel Missile Defense Organization (IMDO) director Moshe Patel and the German Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support director general Annette Lehnigk-Emden are expected to lead the proceedings.

Representatives from IMOD, BMVg, and Israel Aerospace Industries (IAI) will also attend.

Israel Defence Minister Israel Katz said: “The Bundestag’s approval of the Arrow 3 contract expansion is a clear expression of Germany’s profound confidence in Israel, our technological capabilities, and our shared commitment to protecting our citizens against escalating threats. This represents a first-tier strategic partnership rooted in a long-term defence strategy.”

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The Arrow 3 system is co-developed and produced by the IMOD’s Directorate of Defense Research and Development (DDR&D) and the US Missile Defense Agency (MDA), with IAI acting as the primary contractor.

The exo-atmospheric anti-ballistic missile defence system is designed to intercept threats at long ranges, including those equipped with weapons of mass destruction.

It offers hypersonic performance and can protect wide areas, securing strategic locations and densely populated regions.

Arrow 3 delivers high lethality against all varieties of theatre ballistic missiles (TBMs) and warheads.

The system can operate as part of the Arrow Weapon System (AWS) battery, which includes a ground radar, battle management system, launchers, and a launch control centre.

In February 2021, IMDO and the US MDA started developing the Arrow-4 weapon system to replace the Arrow-2 system.

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