Rafael's EUR2 Billion Spike Missile Deal: A Boost for Israeli-German Defense Ties

Rafael Advanced Defence Systems has secured a major EUR2 billion contract to supply Spike anti-tank missiles to Germany, amid geopolitical tensions and growing demand for military technology in Europe. This deal reinforces Israel's position as a key defense partner for Germany, second only to the US.

Tel Aviv – In a landmark deal, Israeli defense contractor Rafael Advanced Defence Systems has secured a lucrative EUR2 billion contract to provide the German military with Spike anti-tank missiles. This transaction marks one of the largest European defense agreements for Israel's military industry in recent times.

The transaction will be executed through EuroSpike, a joint venture where Rafael owns a 20% stake. German firms Rheinmetall and Diehl Defence hold 40% each, managing the marketing and production of Spike missiles across Europe with manufacturing slated for a German facility.

The contract is significant amid political friction following German Chancellor Friedrich Merz's decision to impose an arms embargo on Israel. This deal highlights a burgeoning strategic partnership, as Israel is Germany's second-largest arms partner, following the US.

(With inputs from agencies.)