Israel has confirmed the completion of Iron Beam, the first laser defense system ready for active use. The project is led by Rafael Advanced Defense Systems and Elbit Systems (ESLT). It passed weeks of trials in the south of the country and showed that it can intercept rockets, drones, mortars, and even aircraft. The government said the system will join the current Iron Dome and other layers of defense by the end of 2025.
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A key outcome from this development stems from the technology being used; the use of a high-energy laser changes the cost math of defense. At present, each Iron Dome missile costs about $40,000 to $50,000. By contrast, Iron Beam can fire at a price between $2.50 and $10 per shot. As a result, Israel gains the ability to counter cheap incoming fire with far lower expense, and it can do so as long as power is available.
Market and Industry Impact
For Rafael and Elbit Systems, the system gives new weight in global markets. Both groups already earn about 70% of revenue outside Israel, and this new product can raise demand in Asia, Europe, and beyond. In turn, that can mean more orders and more joint deals with foreign partners. Investors may watch to see if fresh export deals support long-term growth for both companies.
At the same time, other defense firms face new pressure. Current missile makers such as RTX Corporation (RTX) or MBDA depend on higher-priced interceptors. Now, Iron Beam highlights the risk that clients may move funds toward lasers and away from older models. For that reason, large groups in the United States, Europe, and Asia may raise their own plans for similar tools.
As a next step, the first units will enter the Israeli defense grid this year. From there, global peers will likely look at the results and weigh how to add this kind of system to their own plans. The shift may set a new path for the future of defense trade, and it places Israeli firms in a strong seat for the next wave of orders.
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