Israel Bolsters Air Defense with $536 Million Iron Beam Laser Deal

The Israeli Ministry of Defense announced today a significant advancement in air defense capabilities, stating that a contract worth $536 million (2 billion shekels) has been signed to increase the production of Iron Beam, a new laser-based missile defense system. This system is expected to become operational within the next year, representing a strategic development in military defense technology.

The contract was awarded to two local firms: Rafael Advanced Defense Systems, a state-owned entity, and Elbit Systems, which is traded on NASDAQ under the ticker ESLT. Iron Beam is designed to counter and neutralize various aerial threats, including rockets, mortars, drones, and cruise missiles.

The new defense mechanism is planned to work alongside the existing Iron Dome system, known for its ability to detect and destroy incoming rockets and missiles targeting Israel. Iron Dome uses radar-guided missiles to effectively eliminate short-range threats. The integration of Iron Beam is expected to bolster Israel's protective measures against aerial attacks.

Eyal Zamir, the director general of the Israeli Ministry of Defense, emphasized the significance of this development, stating that the Iron Beam agreement heralds "the beginning of a new era in warfare." Military experts view Iron Beam as a cost-effective solution to counter enemy rockets and drones, compared to the preventive missiles currently used by Israel. The financial terms of the agreement correspond to an exchange rate of 1 dollar being equivalent to 3.7290 shekels.