The Defense Ministry’s confirmation that Rafael’s laser interception systems were used during the ongoing Swords of Iron war comes at a pivotal moment. NATO countries are preparing to raise their defense spending to 5% of gross domestic product (GDP), a shift expected to generate some €800 billion in procurement.
With Israeli companies Rafael Advanced Defense Systems and Elbit Systems already embedded in NATO supply chains, their next-generation laser systems could become Israel’s next multi-billion-dollar defense export—if diplomatic friction doesn’t block the path.
Despite more than 10,000 successful interceptions since 2011, Israel’s Iron Dome air-defense system—developed by Rafael—has never been sold as a full system to any foreign country. While the United Kingdom purchased its battle management center and the United States Marine Corps acquired its interceptors, no nation to date has received the complete platform.
This contrasts with the international success of other Israeli air-defense systems. The Arrow 3, developed by Israel Aerospace Industries (IAI), was sold to Germany in a $3.5 billion deal. David’s Sling, another Rafael system, was sold to Finland for €317 million. Rafael’s Barak MX system has racked up roughly $10 billion in global sales. Despite Iron Dome’s strong brand recognition, it has lagged behind these systems in terms of foreign adoption.
Meanwhile, other Israeli-made weapons have already become NATO standards. Rafael’s Spike anti-tank guided missiles have been sold in the billions of dollars and are produced in Germany, with previous manufacturing in Poland.
In recent years, Elbit’s PULS rocket artillery system has gained momentum, with confirmed sales to Germany, the Netherlands, and Denmark—alongside several undisclosed NATO members. Ukraine’s successful use of comparable systems against Russian targets has only added to the demand.
Israel's hopes for its defense technologies
Israel now hopes its laser-based interception technology will be next in line for global adoption—and it’s betting billions on it.
The Defense Ministry recently disclosed the existence of two laser systems: Magen Or (Iron Beam), a high-powered 100-kilowatt laser developed jointly by Rafael and Elbit Systems, and Lahav Barzel (Iron Sting), a smaller 30-kilowatt system designed by Rafael. Magen Or has intercepted short-range rockets at distances of up to 10 kilometers in tests. The IDF is expected to deploy an operational version by the end of the year.
Lahav Barzel, which was used in combat for the first time during Swords of Iron, is more compact and energy-efficient. Rafael and Israeli vehicle manufacturer Plasan have already developed a mobile version mounted on Plasan’s SandCat armored vehicle, enabling rapid redeployment between combat zones.
Footage released by the Defense Ministry showed Lahav Barzel successfully intercepting unmanned aerial vehicles (UAVs) launched by Hezbollah. The laser doesn’t obliterate the drones in dramatic fashion—rather, it focuses heat on the drone’s wing or fuselage until the structural integrity fails and the UAV crashes. The cost per interception is just a few dollars, limited to the electricity required to power the laser.
By contrast, using interceptor missiles or air-to-air munitions can cost hundreds of thousands of dollars per engagement. For American readers, that cost-efficiency could resonate strongly, particularly given current U.S. debates over defense budgets and aid allocations.
As warfare becomes increasingly reliant on drone technology—seen most visibly in Ukraine and Russia’s tit-for-tat strikes involving hundreds of UAVs each week—Israel’s laser defense systems offer something rare: proven battlefield results at a fraction of the price.
The case for Israel’s laser technology is not only tactical but financial. However, Rafael CEO Yoav Turgeman acknowledged that export success also depends on geopolitical considerations—particularly growing European criticism of Israeli operations in Gaza.
France, for example, reportedly attempted to dissuade Germany from purchasing the Arrow 3 system, and other European countries have downplayed their acquisitions of Israeli-made systems in response to domestic political concerns. While some European defense ministries are eager to procure Israeli technologies, officials are increasingly constrained by the political environment.
Nevertheless, the security rationale remains persuasive. NATO states such as Finland, Sweden, Poland, and Germany—countries increasingly concerned about potential Russian aggression—view laser interception systems as a vital new layer of defense. While the United States has deployed 60-kilowatt laser systems on naval vessels, Israel appears poised to be the first country to field a land-based laser system in operational service.
