Israeli defense contractor Rafael Advanced Defense Systems will supply the German army with Spike anti-tank missiles in a deal valued at about €2 billion, one of the largest European defense contracts for Israel’s military industries in recent years.
The deal comes despite political tensions between Jerusalem and Berlin, following German Chancellor Friedrich Merz’s decision earlier this year impose an arms embargo on Israel after the Israeli security cabinet approved a controversial plan for full military takeover of Gaza City.
The missiles will be provided through EuroSpike, a joint venture owned by Rafael (20%) and German defense firms Rheinmetall (40%) and Diehl Defence (40%). EuroSpike markets and manufactures Spike missiles across Europe, with production set to take place at its facility in Germany.
The Spike family of missiles is among Rafael’s top-selling products worldwide, known for ease of operation and compatibility with multiple launch platforms. Rafael has sold Spike systems to more than 40 countries, about half of them NATO members.
The deal was approved as Israel faces mounting international criticism over its ongoing war in Gaza. Earlier this year, Spain canceled a planned purchase from Rafael of 1,700 Spike missiles and about 170 launchers worth roughly 1 billion shekels (about $260 million).
Industry sources said the deal with Germany was likely made possible because EuroSpike is a European company with majority German ownership, which helped bypass some of the political sensitivities surrounding direct defense purchases from Israel.
Germany is both one of Israel’s biggest defense partners and a key weapons supplier, second only to the United States. Before the Oct. 7 war, Israel Aerospace Industries (IAI) signed the €3.6 billion Arrow 3 missile defense deal with Germany, the largest defense contract in Israel’s history. IAI is expected to deliver the first missiles by the end of the year.
Defense officials said Berlin is also considering future procurement of the Arrow 4, an upgraded system under development designed to expand protection against ballistic missiles.
While Germany has previously purchased Spike missiles, the new deal marks its largest acquisition of the system to date. Rafael declined to comment on the agreement.
Separately, IAI unveiled an upgraded version of its long-serving LAHAT anti-tank missile, developed more than 30 years ago. The new model, called Alpha LAHAT, can strike targets at ranges exceeding 20 kilometers—more than double the range of the earlier version.
According to IAI, the missile can accurately hit targets without direct line of sight between the operator and target, using laser guidance to maintain precision even in areas with GPS interference.