Due to the needs of the ongoing war with Iran, plans to boost Israel’s Arrow interceptor stockpile was approved today by the Ministerial Committee for Defense Acquisition. The committee, headed by Prime Minister Benjamin Netanyahu, approved the Ministry of Defense plan for “Another significant speeding up on a large scale” of production of the Arrow interceptor rockets manufactured by Israel Aerospace Industries (IAI).
Following the committee’s approval, the Ministry of Defense says that a deal will soon be signed with IAI to increase the production rate and quantity of Arrow interceptors being produced. The cost of the deal has not yet been determined, but it could reach billions of shekels, which will increase the pressure to break the state budget framework for 2026 – just after it was finally approved by the Knesset last week.
Katz: “Israel has enough interceptors to protect its citizens”
Since the beginning of the current campaign, hundreds of ballistic missiles have been fired at Israel from Iran. The aim is to intercept them outside the atmosphere and, in general, to carry out interceptions as high as possible, to remove the threat from the country. The Arrow system is the top layer of Israel’s air defense system, with the Iron Dome and David’s Sling systems, manufactured by Rafael Advanced Defense Systems, operating at lower altitudes.
The current estimated cost of producing a single interceptor is about $1.5 million for the Arrow 2 and about $2 million for the Arrow 3. The difference between the two is that the Arrow 3 is designed to intercept outside the atmosphere, while the Arrow 2 intercepts at the edge of the atmosphere.
A US congressional document published two weeks ago on the THAAD ballistic missile interception system used by the US expressed concern that the rate of use of the system’s interceptors “has further depleted the limited stock of interceptors.”
Is Israel experiencing a shortage of Arrow 3 interceptors as the Americans are experiencing a shortage of THAAD missiles? Minister of Defense Israel Katz told the media today, “The State of Israel has enough interceptors to protect its citizens, and the current move is intended to ensure continued freedom of action and the necessary breathing space.”
Katz added, “Stepping up large-scale production of the Arrow missile is already significantly increasing the number of interceptors produced each month and strengthening the State of Israel’s top layer of defense against ballistic threats from Iran and its proxies.”
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The Arrow system is being developed and manufactured in cooperation with the US Missile Defense Agency (MDA). IAI is the main developer of the Arrow system, through the company’s MLM plant and in cooperation with US defense contractor Stark. IAI’s Elta division and the company’s TAMAM plant, Elbit Systems, Tomer and Rafael are all participating in production of the system.
Published by Globes, Israel business news – en.globes.co.il – on April 6, 2026.
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