Israel Signs $536 Million Deal for Laser-Based Missile Defense System

JERUSALEM (Reuters) – On Monday, Israel's defense ministry announced a 2 billion shekel ($536 million) deal with local contractors to enhance the production of a new laser-based missile defense system, which could be operational within a year.

The agreement, made with state-owned Rafael Advanced Defense Systems and Elbit Systems (NASDAQ: ESLT), involves a high-power laser system known as Iron Beam. This system is designed to counter aerial threats, including rockets, mortar bombs, drones, and cruise missiles.

Iron Beam will serve as a supplementary defense mechanism to the Iron Dome system, which currently intercepts rockets and missiles targeting Israel by using radar-guided missiles.

Eyal Zamir, director general of Israel's defense ministry, stated that the Iron Beam deal "heralds the beginning of a new era in warfare."

Experts view Iron Beam as a significantly cheaper alternative for neutralizing enemy rockets and drones compared to the interceptor missiles traditionally used by Israel.

($1 = 3.7290 shekels)