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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.