Germany signs $3.1B follow-on Arrow 3 contract with Israel

Israel's Ministry of Defense and the German Ministry of Defense signed a follow-on Arrow 3 production contract on Jan 11, 2026, expanding the deal to roughly $6.5 billion total. The agreement substantially raises production rates of Israeli-made exo-atmospheric interceptors and launchers for Germany, which received its first battery at Holzdorf air base in December 2025, the first deployment of the Israeli system outside Israel or the US, and a major export milestone for Israel Aerospace Industries.