Germany buys ‘Israeli’-made Spike missiles in $2.3 billion deal

The German Army has finalized a major defense contract with ‘Israeli’ defense contractor Rafael Advanced Defense Systems for the supply of Spike anti-tank missiles, a deal valued at approximately €2 billion ($2.3 billion).

The acquisition stands as Germany's largest purchase of the Spike system to date.

The deal is significant as it proceeds despite an arms embargo imposed earlier this year by German Chancellor Friedrich Merz.

Merz’s decision to halt arms shipments intended for use in the Gaza Strip followed the ‘Israeli’ security cabinet's approval of a controversial plan for the full military takeover of Gaza City.

The EuroSpike Bypass

The contract was executed through EuroSpike GmbH, a joint venture specifically created to market and manufacture the Spike missile family across Europe.

EuroSpike is majority-owned by German defense firms, with Rheinmetall and Diehl Defense each holding a 40% stake, while Rafael holds a 20% minority share.

Industry sources confirm that this European ownership structure, combined with missile production taking place at EuroSpike’s facilities in Germany, allowed Berlin to proceed with the acquisition despite the diplomatic constraints surrounding direct defense purchases from ‘Israel’.

The Spike missile system, Rafael’s global bestseller, is already integrated within NATO and used by over 40 countries. The comprehensive contract includes not only the missile supply but also long-term system maintenance, training, and technical support for the weapons’ service life.

In contrast to Germany’s approach, Spain recently canceled a planned purchase of Spike missiles from Rafael, a deal valued at approximately €250 million, citing the humanitarian crisis in Gaza.

Germany remains ‘Israel's’ second-largest defense partner, exceeded only by the United States, cementing a strategic relationship that also includes the high-value Arrow 3 missile defense system contract.