Jerusalem, 22 October, 2025 (TPS-IL) — Israeli defense contractor Rafael Advanced Defense Systems has secured a €2 billion ($2.3 billion) contract to supply the German army with Spike anti-tank missiles, marking one of the largest European defense deals for Israel’s military industries in recent years.
The sale will be carried out through EuroSpike, a joint venture in which Rafael holds a 20% stake alongside German firms Rheinmetall and Diehl Defence, each owning 40%. EuroSpike manages the marketing and production of Spike missiles in Europe, with manufacturing planned at its German facility.
The Spike family, Rafael’s flagship missile system, is known for its operational flexibility and compatibility with multiple launch platforms. Rafael has sold Spike missiles to over 40 countries, including about half of NATO members. This new contract represents Germany’s largest acquisition of the system to date.
The deal comes amid political tensions following German Chancellor Friedrich Merz’s earlier decision to impose an arms embargo on Israel in August, after Israel’s Security Cabinet approved plans for the full military takeover of Gaza City. Merz’s embargo was criticized even by members of his own Christian Democratic Union party. Israel is Germany’s second-largest arms partner after the United States.
Israel’s defense exports to Germany have included record deals such as the €3.6 billion ($4.1 billion) Arrow 3 missile defense system signed before the October 7 conflict, with deliveries expected by year-end. German officials have indicated interest in procuring the upgraded Arrow 4 system, designed to bolster ballistic missile defense.
Israel set an all-time record for defense exports in 2024, with sales reaching $14.795 billion, according to Defense Ministry figures released in June. This marks a 13% increase over the previous year and the fourth consecutive year the record has been broken.
Demand for Israeli military technology surged as European countries increased their defense budgets in response to Russia’s war in Ukraine. Despite two years of war with Hamas, Israeli defense firms maintained continuous production for both the Israel Defense Forces and international clients.
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