Israel agrees multi-billion dollar order for Iron Dome interceptor

After decades of investment in its ground-based air defence, Israel is set to boost its defensive capabilities yet further following a new contract for expanded Iron Dome production that was signed with Rafael. 

The Israeli MoD has signed what is describes as a “multi-billion dollar contract with Rafael to expand serial production of Iron Dome system,” according to a November 20th press release. The press release states that Rafael will deliver a substantial quantity of Iron Dome interceptors under the contract, but does not clarify whether or not the order is for both interceptors and production of the launchers and radars. 

It adds that the US aid package that was approved in 2024 includes $5.2 billion for the improvement of Israel’s air defence, including Iron Dome, David’s Sling, and what is now known as Iron Beam 450. The release does not explicitly link that funding to this order, but the signing ceremony was attended by the US defence attaché to Israel and the contract negotiations included the Israeli representative from the US Missile Defense Agency (MDA).

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The MDA is involved in manufacturing components for Iron Dome and also supports the development of Israel’s layered air defence system. Raytheon is a production partner for the Tamir interceptor that is fired by Iron Dome and states on its website that, “the majority of Tamir missile components are procured through the Raytheon supply chain in the United States.” Another source puts that figure at 55%. US support for Iron Dome can be traced back to 2012 and the Obama presidency, when the Iron Dome Support Act was passed, allowing US governments to assist with the procurement, maintenance, and development of the system for Israel. 

This is not the first contract that the Israeli MoD has signed with Rafael using that US funding, another was announced in January this year. Again it seemed to focus on the Tamir interceptors, referring to a “significant amount.” The text of the US Israel Security Supplemental also refers only to the replenishment of Iron Dome and David’s Sling, allocating $4 billion in funding to those efforts. A further $1.2 billion was allocated to the development of Iron Beam. So, it seems reasonable to conclude that the bulk of the funding will be for replenishing the Iron Dome interceptor stock. 

This is critical for Israel. Hamas and Hezbollah have fired tens of thousands of rockets and drones at Israel since October 2023. Many of them have been intercepted, many have been allowed to follow their trajectory to land harmlessly away from a city. Even so, simply keeping the existing Iron Dome batteries stocked is a significant ask. Referring back to Raytheon’s website on the product again, it states that there are ten batteries located around key population centres consisting of three to four stationary launchers, each of which carries 20 Tamir interceptors. This indicates a range of 600 – 800 missiles just to keep the launchers stocked and ready to respond. If this sounds excessive, bear in mind that the opening phases of the October 7th attack started with a barrage of at least 2,200 rockets fired towards Jerusalem and Tel Aviv, according to the Israeli Defence Forces. 

Calibre comment: Early warning, readiness, and Iron Dome

So, the contract will most likely expand production of the Tamir interceptor and lead to an eventual uplift in the total number of missiles stored in Israel. Iron Dome is often the focus of Israel’s air defence system, which is understandable. The images of its interceptors climbing up above an Israeli city to intercept the rockets arching towards them are very impactful. However, it is worth noting that the Israeli early warning system is seen as being as important as the interceptors themselves. It consists of long-range radars and an alert system that divides the country into more than 1,600 areas. Israeli citizens receive a very precise alert based on the path of Hamas rockets, which is designed to minimise the disruption of the strikes by only warning those that are in harm’s reach to head for shelter. This early warning system has doubtless saved hundreds of lives as there is a high degree of trust and compliance with it. This means that when missiles do get through – as has happened several times – the buildings are usually empty. 

By Sam Cranny-Evans, published on November 21st, 2025. The lead image shows an Iron Dome launcher firing a Tamir interceptor. Credit: Israeli MoD.