Israel Confirms Germany’s Purchase of Additional Arrow 3 Air Defense Missile Systems.

On December 18, 2025, the Israeli Ministry of Defense announced the signing of a new defense contract with Germany valued at approximately $3.1 billion to expand the Arrow-3 air defense missile system.

The agreement builds on earlier milestones in bilateral cooperation and reflects Germany’s accelerated effort to strengthen air and missile defense in response to the evolving European security environment. The Israeli Ministry of Defense stated that the new contract builds on the initial Arrow-3 agreement signed between Israel and Germany in November 2023, which marked the first export sale of the exo-atmospheric interceptor and laid the foundation for Germany’s participation in the European Sky Shield Initiative.
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The Israeli-made Arrow-3 is an exo-atmospheric ballistic missile defense system designed to intercept and destroy long-range missiles in space using hit-to-kill technology. (Picture source: Wikimedia)

The first Arrow-3 air defense missile system contract with Israel, finalized in late 2023 following U.S. government approval, was valued at around $4 billion and represented the largest defense export deal in Israel’s history. That agreement covered the procurement, integration, and initial deployment of the Arrow-3 system for German air and missile defense and signaled a fundamental shift in German defense planning toward long-range ballistic missile interception. Israel confirmed at the time that deliveries would begin in 2025.

A major milestone in the program was reached on December 3, 2025, when the Israeli Ministry of Defense delivered the first operational Arrow-3 system to Germany during a formal ceremony at a German Air Force base near Berlin. According to the ministry, the event marked a significant step in implementing the defense export contract, signed approximately 2 years earlier, and demonstrated tangible progress toward operational deployment. The delivery included core system elements intended to support early integration into Germany’s national air defense architecture.

The newly announced $3.1 billion contract expands the scope of the original agreement, covering additional system components, extended coverage, and long-term sustainment. It is intended to enhance Germany’s ability to field Arrow-3 at scale, ensuring sufficient interceptor availability, upgraded command-and-control integration, and sustained operational readiness over the coming decades.

Arrow-3 constitutes the uppermost layer of Israel’s multi-tier missile defense architecture and is designed to intercept ballistic missiles outside the Earth’s atmosphere using a hit-to-kill kinetic interceptor. By engaging threats during the midcourse phase of flight, Arrow-3 neutralizes incoming missiles before atmospheric reentry, significantly reducing the risk of debris or warhead detonation over defended areas. The system is developed by Israel Aerospace Industries through its MLM Division in close cooperation with the U.S. Missile Defense Agency.

From a technical perspective, Arrow-3 integrates long-range detection and tracking sensors such as the EL/M-2080 Green Pine radar family with an advanced battle management, command, control, and communications architecture. The interceptor features a high-resolution infrared seeker, autonomous guidance, and extreme maneuverability, allowing precise discrimination and engagement of complex ballistic targets at altitudes exceeding 100 kilometers. Its extended engagement envelope enables early intercept opportunities and improves resilience against saturation attacks.

The expansion and delivery of Arrow-3 are closely aligned with Germany’s national plan to significantly increase its air and missile defense capabilities following Russia’s war in Ukraine. The extensive use of ballistic missiles, cruise missiles, and long-range precision strike systems during the conflict has highlighted vulnerabilities in European air defense coverage. In response, Berlin has prioritized layered air defense as a core element of deterrence, accelerating the acquisition of Patriot PAC-3, IRIS-T SLM, and now exo-atmospheric interception capabilities.

Within this framework, Arrow-3 provides Germany with a strategic defensive layer capable of countering long-range ballistic missile threats well beyond the reach of conventional air defense systems. Integrated under the European Sky Shield Initiative, the system is intended to protect German territory while also contributing to broader NATO missile defense coverage for allied population centers, critical infrastructure, and military installations.

Industrially, the follow-on contract strengthens Israel Aerospace Industries’ long-term production and sustainment pipeline while deepening defense-industrial cooperation between Israel and Germany. The program is expected to involve German industry in infrastructure development, system integration, training, and lifecycle support. It also reflects continued trilateral coordination with the United States, given Arrow-3’s joint development framework.

Strategically, the expanded contract for the Arrow-3 air defense missile system, combined with the first operational system delivery in December 2025, underscores Europe’s growing emphasis on deterrence by denial, shaped by the lessons of the war in Ukraine. By moving from contract signature to physical reception and system expansion, Germany positions itself as a central pillar of Europe’s future air and missile defense architecture.

Written by Alain Servaes – Chief Editor, Army Recognition Group
Alain Servaes is a former infantry non-commissioned officer and the founder of Army Recognition. With over 20 years in defense journalism, he provides expert analysis on military equipment, NATO operations, and the global defense industry.