The Israeli Ministry of Defense has announced the signing of a contract for the procurement of interceptor missiles for the "Iron Dome" air defense system, funded by the latest tranche of American assistance provided to Israel.
The contract was signed on January 16 with Rafael Advanced Defense Systems, which developed and manufactures the "Iron Dome," as reported by Breaking Defense. In addition to the missile procurement, the contract also includes the expansion of the company's production capabilities to increase the serial production of interceptors for this system.
This tranche is part of a aid package announced in April 2024. Overall, Israel is set to receive $26 billion, with the latest tranche amounting to $8.7 billion. Of this, $5.2 billion is allocated for strengthening Israel's air defense, including the "Iron Dome," "David's Sling," and likely the new laser system, Iron Beam.
The Israeli Ministry of Defense has not disclosed details regarding the volume and cost of the contract, but they note that the agreement includes the supply of a significant number of "Iron Dome" interceptors - Tamir. It is worth mentioning that in public sources, the price of a Tamir is reported to range from $40,000 to $100,000, considering that the missile features its own active radar homing guidance system.
It is important to remember that the "Iron Dome" air defense system was actively used during the interception of missile and drone attacks from Hamas, Hezbollah, and Iran in 2023 and 2024. As a result, the stockpiles of these interceptors have been significantly depleted, prompting Israel to replenish its reserves and increase production capabilities using American funds.
Furthermore, the United States has invested substantial resources in the establishment of Israel's entire missile defense system, including financial and technological investments in the "Iron Dome." At the same time, the U.S. itself is ultimately arming itself with this very system, specifically the Marine Corps is set to receive 44 launchers and 1,840 Tamir missiles for the Israeli "Iron Dome" version known as MRIC (Medium-Range Intercept Capability), which will be organized into three batteries. To facilitate this production, a new factory has been built in East Camden, Arkansas, which is scheduled to begin production in 2025.