The deal, valued at €20 million (U.S. $21.8 million), is the latest between the two countries. In 2019 the first government-to-government deal was signed for $35 million in which Elbit Systems provided remote control weapons stations to the Balkan country.

The agreement between Montenegro and Israel is one of several recent contracts for Elbit in Europe, including multiple contracts in Romania. The sale was approved by the Director General of the Israel Ministry of Defense, Maj. Gen. Eyal Zamir.

“This marks the third agreement with our partners in Montenegro since bolstering our defense relations in 2019 and is a great expression of confidence in the Israeli defense industry,” said Gen. Yair Kulas, head of the International Defense Cooperation Directorate at Israel’s Ministry of Defense, in a statement. “Montenegro is a partner and ally of Israel and faces complex security challenges like other European countries.

The contract, signed in Tel Aviv, will include Elbit Systems 120mm mortar munition system that are mounted on vehicles. Photos show it being mounted and fired from the back of a lightly armored vehicle.

The previous 2019 contract included the supply of Remote Controlled Weapon Stations for what were at the time new Oshkosh Defense 4X4 Joint Light Tactical Vehicles . In May 2022, Oshkosh Defense said that along with Elbit Land Systems it had successfully demonstrated a live fire of Spear 120mm low recoil mortar on a JLTV Mortar variant during a multinational demonstration hosted in Israel.

Russia’s invasion of Ukraine has led to a major increase in defense spending and procurement across Europe. Western countries seek to balance the needs of aiding Ukraine with resupplying their own stockpiles of munitions and buying new systems to prepare for future conflicts.

For Israel’s big three defense contractors — Rafael Advanced Defense Systems, Israel Aerospace Industries and Elbit Systems — this represents a potential boon. In mid-April, for example, Israel’s Defense Ministry said Germany was in advanced negotiations to acquire Israel’s Arrow 3 air defense system. Finland is also acquiring the David’s Sling missile defense system, and Greece has announced a deal to acquire Spike missiles and drones.

The three companies each already have a presence in Europe. Some have local subsidiaries or agreements with European defense companies, or unique European footprints, such as Rafael’s EuroSpike program. That means they are in a position to quickly react to new procurement plans.

For Niv Cohen, who leads Rafael’s land maneuver systems business, the war in Ukraine has emphasized a need for land warfare equipment in particular.

“The conflict has highlighted the principles of land maneuvering and holding territory conquered during battle,” he said. “This understanding of operational requirements has led to countries in Europe and around the world to develop serious plans for purchase and procurement of fighting vehicles, especially tanks.”

Cohen also pointed to the related market of protective equipment to complement those vehicle fleets.

Rafael hopes those market dynamics bode well for its Trophy active protection system. The U.S. and Germany have already acquired the Trophy for their Abrams and Leopard tanks, respectively. The system has been operational in Israel since 2011, and Cohen said it has received upgrades since to meet changing threats.

The company established EuroTrophy last year as a Europe-based company in partnership with Germany’s Krauss-Maffei Wegmann and Spain-based General Dynamics European Land Systems.

With the interest in active protection systems growing in Europe, Rafael has transferred the supply chain for its EuroTrophy and EuroSpike programs to the continent.

“Given the difficulties in the global supply chain, our local manufacturing capabilities provide flexibility, efficiency and a streamlined process to help avoid the obstacles we identify here in Israel or in any arena,” Cohen said.

Ran Kril, Elbit’s executive vice president for international marketing and business development, said a huge demand exists for artillery system munitions, protection capabilities and electronic warfare weaponry.

The company’s acquisition of IMI in 2018 added new munitions as well as artillery and rocket systems to the company’s portfolio. Kril point to this as enabling Elbit to potentially fill orders for countries that have seen munitions shipped to and consumed by Ukraine in the war.

Elbit has built a network of local offshoots across Europe, including in the U.K., Sweden, Switzerland and Germany, that are meant to boost the promise of local workshare in future sales.

“They are expanding that as we speak because we understand the increase of the budget doesn’t mean they are willing to buy from outside; they would like most of the work, and also development or maintenance. They expect to see more activities done in the country, so a strategy of establishing subsidiaries is one layer of the strategy, and this is in partnership with other companies. [It’s] a win-win for both of us for programs,” Kril said.

At IAI, CEO Boaz Levy said he hopes to bring his company into play in Europe by linking equipment across the air, space, land and sea domains of warfare.

“This is where I will connect it to Europe,” he said. “IAI now has a lot of products that are suitable for the war that is taking place in Europe and gives us a view toward the future battlespace. When you look at the war there, you will see the requirements for better situational awareness and capabilities for space that are unique to IAI.”

While Levy didn’t mention specific customers, he did point to the firm’s Barak missile as an example of a product that has seen recent success, as well as radars and loitering munitions. The Czech Republic, Slovakia and Hungary, for example have acquired the radar used with Israel’s Iron Dome air defense system. Elta, a subsidiary of IAI, produces the radar.

The underwater vehicle is almost 11 meters long and just over 1 meter in diameter. Coming in at 5.5 tons (11,000 pounds), the platform can fit in a 40-foot shipping container for transport by land, sea or air. The size of the vessel is similar to deep-submergence vehicles or so-called crewed midget submarines.

It can travel at up to 7 knots underwater, and using electrical power, the submarine can operate for two to four weeks, depending on the mission, the company said.

Its range, at an average speed of 7 knots for 10 days, would be more than 1,600 nautical miles (1,841 miles).

The platform can detect submarines and gather acoustic intelligence using radar and electro-optical technology, according to the company. It has a mast, like larger crewed submarines, and a telescope to help detect targets at sea and on the coast, the company added in a statement.

“It is also equipped with dedicated sonars to enable the detection of both manned and unmanned submarines, and map mines on the seabed,” IAI noted, as well as “a special sensor suite [that] ensures safe transit for the submarine both below and in the proximity of the sea surface.”

The company also said the sub can conduct acoustic intelligence as well as search for and detect naval mines on the seabed. Mine detection is conducted with dedicated synthetic aperture sonar, attached to the sides of the vessel.

“By using a satellite communications antenna on the mast, the gathered data can be transferred in real-time to command posts, anywhere in the world, at sea or on land. Submarine detection and acoustic intelligence-gathering data is enabled using a sonar, several tens of meters long, towed by the BlueWhale, and by flank array sonar with receiver arrays attached to both sides of the platform,” IAI said in the statement.

The company added that BlueWhale has “undergone thousands of autonomous operation hours, including intelligence-gathering for both maritime and coastal targets, acoustic intelligence, and identifying the presence of naval mines.” It also noted the platform can perform a portion of operations performed by crewed subs and can operate for several weeks at a time at “minimal cost and maintenance, without the need for operators on board.”

The BlueWhale has a sensor suite to help ensure its safe transit underwater or near the surface. In recent years, a number of international patents were registered regarding development of the system, the company said.

IAI did not elaborate on the cost of the system.

Navies around the world are seeking more unmanned solutions at sea, particularly the U.S. Navy, which wants to field more unmanned vessels and is running a program in the Gulf region to test unmanned surface units. In 2021, IAI partnered with Emirati conglomerate Edge Group to develop unmanned surface vessels.

Underwater threats, such as the destruction of the Nord Stream pipeline, which several countries have blamed on sabotage, are driving these efforts.

JERUSALEM — The governments of Germany and Israel, as well as Israel Aerospace Industries, are in “advanced negotiations” over delivering the Arrow 3 air defense system to Germany, according to the Israeli Defense Ministry.

The ministry said in an April 20 statement that the countries “have launched discussions regarding the drafting of an agreement for the procurement of the Arrow-3 system.”

Photos provided by the ministry showed an Israeli delegation in Germany meeting with their counterparts. Moshe Patel, the director of the Israel Missile Defense Organization, led the team and is pictured with several officials, including Col. Carsten Koepper, the head of the program that could see the Arrow 3 exported to Germany, and Israeli personnel associated with the division charged with the country’s upper-tier air defense architecture as well as the head of the Arrow weapon system engineering department.

“The launch of advanced negotiations for the delivery of the strategic Arrow-3 system to Germany is an important milestone, which further strengthens the ties between our countries. We look forward to a fruitful negotiation process in the weeks ahead of us,” Patel said.

An export of this kind would be contingent on U.S. approval, the Israeli statement noted, given the Arrow system was jointly developed with the American government.

Israel Aerospace Industries, which is the prime contractor of the system, praised the development. “The cutting-edge Arrow-3 system plays a central role in Israel’s multi-tier air defense array. We value the opportunity to share our capabilities with the partners and allies of the State of Israel. Within the framework of this agreement, we further deepen our security ties between Israel and Germany,” CEO Boaz Levy said.

The Arrow 3 is part of Israel’s multilayered air defense architecture. Along with the Iron Dome and David’s Sling, the Arrow weapon provides the upper tier, which is responsible for intercepting and countering exo-atmospheric ballistic missiles.

The Israel Missile Defense Organization — part of the Defense Ministry’s Directorate for Defense Research and Development — and the U.S. Missile Defense Agency jointly developed the system. In 2015, Israel said the technology successfully engaged a ballistic missile target for the first time. Other successful tests followed, including as recently as 2019.

Last year, the German Air Force acknowledged it was considering the Arrow 3 as an option to counter threats such as the Russian Iskander missile. The news came in the wake of Russia’s invasion of Ukraine.

The announcement of advanced negotiations follows the sale of David’s Sling to Finland. The U.S. also helped develop that air defense system. Israel has also recently sold Spike missiles to Greece, and other countries in Europe have developed Israeli radars made by Elta, a subsidiary of IAI, that are used with the Iron Dome interceptor.

The Israeli Defense Ministry and IAI did not mention the possible value of a contract with Germany or a timeline for negotiations and potential delivery. Neither responded to Defense News’ requests for further details by press time.

The deal is part of the sale of Rafael’s Spike missiles to the country in a package worth EUR 370 million ($404 million).

The Orbiter 3, which has a maximum take off weight of 32 kilograms (71 pounds) and can fly for as long as six hours, is suitable for intelligence, surveillance and reconnaissance missions. The agreement will see “dozens” of the drone supplied to the Greek Ministry of Defense, the company said in a statement.

The initial announcement of the Spike deal made no mention of the Orbiter 3 and Israel’s Ministry of Defense did not elaborate. The announcement came before Yom HaShaoh, the annual Holocaust memorial day, and officials were not available to comment.

Aeronautics noted that as part of the contract, “Rafael will provide an advanced solution enabling significant operational advantage to the modern battlefield; while the Orbiter 3 systems detect, recognize and identify (DRI) the target, the Spike missiles, launched from the air, sea, or land can rapidly close the sensor-to-shooter loop, using the Fire Weaver; C4I system.”

In the last year Rafael has presented this kind of fire control capability, which it calls “the NLOS Mission Taskforce (NMT)… a comprehensive, end-to-end operational solution providing small, mobile combat units of 4X4 or armored vehicles with organic detection, attack, and fire control capabilities.”

The company did not comment on how the Orbiter 3 integrates with this system, beyond the statement about the UAV detecting targets while Spike can be launched to close the sensor-to-shooter loop.

“This collaboration demonstrates the technological synergy, and the close business integration, between the two companies,” said Aeronautics CEO Dan Slasky in the statement.

The UAV is runway-independent and can carry various types of payloads, as well as navigating in GPS-denied environments and in harsh weather conditions. In 2019 Aeronautics said it would supply the Orbiter 3 to an unnamed country in Asia and it also won a contract to another unnamed client in South America.

Aeronautics was founded in 1997 and acquired by Rafael and Stolero Aeron in 2019 with state-owned Rafael taking a fifty percent stake.

Greece and Israel have increasing partnerships on defense issues in recent years, including numerous joint drills. In 2020 Greece announced a leasing arrangement for large Heron drones with Israel’s IAI and Israel’s Elbit Systems was contracted to build a flight training facility in the country.

Finland’s Ministry of Defence said it “authorised the Finnish Defence Forces to procure the David’s Sling system as the next long-range air defence system of Finland.”

David’s Sling was developed as part of a joint program between the Israel Missile Defense Organization and the U.S. Missile Defense Agency, with Israel’s Rafael Advanced Defense Systems serving as the prime contractor. Rafael also makes the Iron Dome air defense system, which is for shorter range threats.

This will be the first export of the David’s Sling system. The system is designed to intercept advanced aerial threats, including ballistic missiles, aircrafts, UAVs and cruise missiles, Israel’s Ministry of Defense said in a statement.

According to the statement, the procurement process took several years and was a competitive process.

Finland said the system will extend the operational range of Finland’s ground-based air defense capabilities significantly.

“The minimum flight altitude requirement of the system was set at 15,000 meters in the request for quotation,” Finland’s Ministry of Defense said.

Finnish Minister of Defence Antti Kaikkonen added in the statement that the “acquisition will create a new capability for the Finnish Defence Forces to intercept targets at high altitude. At the same time we are continuing the ambitious and long-term development of Finland’s defence capability in a new security environment.”

The agreement with Israel includes interceptors, launchers and radars. While Rafael is the prime contractor, the agreement involves work with IAI’s Elta subsidiary regarding the multi-mission radar for the system, and also Elbit Systems, which makes the command and control system. Together, these are Israel’s three largest defense companies.

The agreement will require the U.S. to provide a sales release approval, both the Israeli and Finnish statements noted. Neither elaborated on when that approval might be expected.

The Finnish version of the system will be manufactured and integrated as a collaboration between Israeli, American and Finnish contractors, led by Rafael and Raytheon Technologies, the Israeli statement said.

Finland’s statement noted the main contract is worth €213 million and includes an immediate exercise of options for another €103 million. The contract also includes other unspecified options for €216 million.

In addition, the Finnish statement notes “the procurement contract will include a separate part between the Israel Ministry of Defence and the Ministry of Defence of Finland to ensure the security of supply of the system. The arrangement will ensure the availability of critical system components in all security situations.”

David’s Sling was first publicly activated to confront threats in 2018, a year after it was declared operational.

The deals, which Elbit said are with a European NATO member country, come as several governments on the continent continue their shopping sprees to resupply their troops, having sent munitions from their own stocks to Ukraine, which is under invasion by Russia.

“We are witnessing a trajectory of an increased demand for advanced artillery solutions from militaries around the world, including European countries and NATO members, as part of their efforts to increase the effectiveness of their armed forces. Our operationally proven systems provide an advanced, cost-effective solution to meet that demand,” said Bezhalel Machlis, the CEO of Elbit.

Elbit says the ATMOS can fire “all NATO-certified 155mm projectiles” and that its range can exceed 40 kilometers (25 miles) with certain ammunition. “The ATMOS is designed for rapid deployment and operation enabling provision of fire support for a broad range of missions,” it added.

The PULS can fire both free-flying and precision-guided rockets as well as missiles at ranges of up to 300 kilometers.

Who’s the customer?

Elbit did not get more specific in identifying the customer — a common practice among Israeli defense contractors.

Notably, in January, Denmark’s Ministry of Defence Acquisition and Logistics Organisation said it was searching for a supplier to “quickly deliver new equipment to the Armed Forces” to close a capacity gap. The country is sending 19 Caesar artillery systems to Ukraine.

The PULS deal announced by Elbit includes rockets and missiles, as well as two batteries of the system. “The PULS launcher is fully adaptable to existing wheeled and tracked platforms, enabling a significant reduction in maintenance and training costs,” the company said. “The contract will be performed over a period of three years.”

The ATMOS deal will be performed over two years.

According to the Danish ministry’s statement in late January, its acquisition agency had “started negotiations with the manufacturer Elbit Systems for the delivery of ATMOS artillery pieces and PULS rocket launcher systems as soon as possible. The rocket launchers complement the new artillery systems, as it is initially not possible to get sufficient artillery delivered quickly enough to meet the Defence’s operational needs.”

“The acquisitions are also important to be able to retain our soldiers at the artillery and for the continued development of the 1st Brigade,” Defence Minister Jakob Ellemann-Jensen had added.

The report cited Elbit Systems as a possible supplier that could this year deliver “sufficient ATMOS and PULS systems for Denmark to continue to register an artillery unit for the NATO Readiness Initiative.” The NRO is a group of units that provides the alliance with rapid-response capabilities.

According to the ministry, the main purpose of the acquisition effort is to bolster “the deterrence against Russia and reassure the eastern NATO Member States.”

On Jan. 19, days before the Danish statement mentioning Elbit, the Ukrainian Defence Ministry noted that “Denmark will transfer to Ukraine 19 CAESAR ACS,” and that the “donations will lead to a delay in strengthening Denmark’s 1st Brigade. Therefore the government [of Denmark] is now considering opportunities to quickly acquire new systems.”

The 1st Brigade is based in Holstebro and is part of the rapid-reaction force. It’s artillery battalion requires several Caesar self-propelled howitzers, which were acquired in 2017 and recently introduced to the force. But with Danish Caesar weapons on the way to Ukraine, Denmark is attempting to keep the 1st Brigade fully “manned and deployable” by replacing the systems by January 2024, according to the Sweden Defence Research Agency, which conducts defense research for the Swedish government.

Reports from 2017 had said Elbit’s ATMOS was one of the systems Denmark considered in a tender at the time, which eventually resulted in the Caesar acquisition. Tatra Trucks noted in March 2017 that “in the final phase, the choice was between the Caesar howitzer on a four-axle Tatra chassis and the Israeli-type ATMOS made by the Elbit Corporation, also mounted on the Tatra chassis.”

Defense News has contacted Denmark’s Defence Ministry for comment.

The sales in Europe come as Elbit announced a deal via its Romanian subsidiary, Elmet International, to supply $120 million worth of unmanned turrets, remote controlled weapon stations and mortars for the Piranha V combat vehicle over a three-year period.

The head of Rafael Advanced Defense Systems, Yoav Har-Even, attended the inauguration ceremony with Israeli and Emirati officials, according to a Feb. 16 company news release.

“We are encouraged by yet another concrete step in strengthening Rafael’s ties with the UAE. We can now say that we have built the bridge to the United Arab Emirates by this inaugural investment and are excited to continue to expand the relationships that have been cultivated thus far,” Har-Even said.

The Gulf is a new market for Israel in the wake of the Abraham Accords, which saw the Jewish state improve diplomatic relations with several Arab neighbors.

The company will also exhibit its Iron Beam high-energy laser weapon at IDEX. The technology, designed in Israel, augments the capabilities of the Iron Dome air defense system. This will be the first time the UAE gets a look at the new laser system.

Reports last year said the UAE was seeking to acquire Rafael’s Spyder air defense system. Rafael said the Spyder received upgrades “to allow for the counter ballistic missile capability through an extended range of the Derby LR missile.”

Rafael Advanced Defense Systems unveiled the video Feb. 17, in which it demonstrated counter-drone capabilities conducted in the last month. The 30mm weapon Typhoon Mk-30c and the 25mm Typhoon variant are in service with several navies around the world, including the U.S. Navy. But it’s the new counter-drone capability that adds to the types of missions the gun can perform.

The company has 32 customers worldwide for the Typhoon and has installed 750 of the systems, according to Ran Tavor, who leads Rafael’s naval warfare systems business.

“We developed enhanced capability for the typhoon family, focusing on the 30mm, because of its caliber and also because of [its ability to use] different types of rounds such as the air burst munition,” Tavor said.

The system offers the operator fire correction, which can minimize the number of rounds needed to down a UAV. The system fires bursts of 10 rounds, and the company says one or two bursts is enough to down a drone threat.

The company also noted that drone swarms are an issue that forces must address “one by one, and do it fast.” “[W]e’ve enhance the magazine from 200 to 400 rounds so you don’t need to load it too often,” the company added.

The capability is operational and the company is offering it to customers as an upgrade to existing systems. It has a range of approximately 3 kilometers (1.9 miles).

Rafael is also focusing on its sixth-generation Spike NLOS missile system, which it announced last year and customers can now install on ships. With a standoff range of 32 kilometers, Tavor said the sixth-gen version can simultaneously attack a single or different targets with four missiles, “and we can do a handover from a vessel to [another operator] to take control of the target, and it also has the automatic target recognition within the seeker — a library of targets pre-inserted — and it looks automatically to find the right target.”

He added that the capability is suited well to littoral combat areas, or near islands, but can also work during sea-to-sea operations.

The Gulf is a new market for Israel in the wake of the Abraham Accords, which saw the Jewish state improve diplomatic relations with several Arab neighbors. Tavor said Rafael hopes to increase business in the region.

He also sees NAVDEX as an opportunity to highlight these types of weapons because of the drone threat in the “neighborhood” — a reference to the Gulf and nearby areas. Among other attacks, Saudi Arabia’s Abqaiq and Khurais oil facilities in September 2019 were hit with drone swarms and low-altitude cruise missiles.

A statement from the company noted that the Spike NLOS system “is operational in various navies worldwide and is compatible with a range of warheads.” Rafael says its SPIKE family of systems were so far sold to 39 countries, including 19 NATO countries.

HevenDrones said that “with 5-times greater energy efficiency than traditional lithium battery-powered drones, the H2D55 is capable of flying for 100 minutes” with a payload capacity of 7 kilograms (15 pounds).

Chief Executive Officer Bentzion Levinson, speaking ahead of next week’s IDEX defense and security exhibition in Abu Dhabi, said that HevenDrones seeks to provide drones that fill a capability gap that exists between large HALE and MALE drones, and smaller quadcopters that carry cameras and other sensors.

“Between those two types there is a big lack of drones, not only taking pictures but taking a role on the battlefield, so we call it taking drones from a flying camera to robot,” he told C4ISRNET in an interview.

The dronemaker has launched drones that carry a 20 pound and 70 pound payloads, which can be useful to supply soldiers on the battlefield, carrying things like water, ammunition or medical supplies. The company also integrated land robots onto the payload, Levinson said.

One limitation drones face is that a larger payload means a drone needs more battery power, and then the weight becomes larger, meaning the drone needs larger engines. This triangle of size issues has kept smaller drones from achieving long ranges and endurance in terms of flying time. Levinson says that using hydrogen fuel enables a longer flight time and a better energy-to-weight ratio. The company worked closely with Israel’s Ministry of Defense on this project over the last year and a half.

“Essentially we create energy in the sky with a hydrogen tank and cylinder that is highly pressurized and it makes the gas into energy and that goes into a battery that powers the drone,” Levinson said.

Swappable fuel cells

HevenDrones worked with hydrogen fuel energy developers in New York state and the U.K. to customize an energy source for the drones. Hydrogen fuel cells can be swapped out, like a battery, and armies can bring fuel to a base to portably refuel tanks, and one can have an electrolyzer in the field, with water and electricity, to create the hydrogen fuel source, according tot he company.

The company has tested these energy sources to make them safe, subjecting them to small arms fire and also dropping them from a height. It’s planning to open an office in Miami says it is starting to see global growth in partnerships.

“The hydrogen tailored factories has opened a new capability and new generation…if you can imagine the changes on battlefield for instance,” said Levinson, a former soldier. “I was a combat commander, we find ourselves as military people in difficult situations and having flying robots that can fight the war with us and carry our bags or fly in a few hundred feet ahead of us with thermal cameras and eliminate risks, that can eliminate risk to our soldiers.”

HevenDrones sees the potential for partnerships in the UAE. In the wake of the peace deal with Israel, called the Abraham Accords, Israeli companies have been appearing at IDEX. CEO Levinson says he sees growth, resources and also an “innovation mindset” in the UAE that has potential for “strengthening the region and that is a key priority. We see it as a top market.”

Like most Israel companies in the defense sector, HevenDrones doesn’t disclose its other customers but says it has drones “flying on two continents.” The battery-powered drones are already operational and the hydrogen-powered drone has passed a proof of concept, with the company expecting to deliver the first of these drones to the market in the next couple of months. It describes the H2D55 as the first hydrogen-powered drone for commercial use, and said its working with an unnamed global parter to roll it out in the second half of 2023.”

“Imagine 30 drones advancing in a swarm and if they don’t have to come back every 30 minutes but in a few hours,” Levinson said. “Hydrogen can mean 4-5 hours of flight time, so it’s a big jump; it’s a new capability of what we can do with payloads and flight time.”