Mysterious Drone Hovering Over Germany's Arrow Missile Battery May Boost Rafael and Elbit Deals

On December 1, 2025, the German Air Force detected an unidentified unmanned aerial vehicle hovering above the first Arrow missile battery at the Holzdorf-Schnewalde base, located 120 kilometers south of Berlin. The drone was not intercepted, and its ownership remains unknown, though Russia is the primary suspect, potentially seeking intelligence on the Arrow system. Germany purchased this missile defense system from Israel Aerospace Industries in two separate deals totaling $6.5 billion to enhance its ballistic missile interception capabilities.

Currently, the German Air Force lacks an effective capability to intercept drones and unmanned aerial vehicles, prompting it to consider laser technology as a solution. Air defense systems have become high-value targets, as demonstrated by Hezbollah's released footage showing attempts to attack Iron Dome launchers in northern Israel using drones. In response, the German Ministry of Defense plans to launch a project soon to develop a 60-kilowatt laser demonstrator aimed at protecting mobile facilities against drone swarms. The ministry has reportedly consulted a foreign laser manufacturer in preparing the tender.

Israeli defense companies Rafael Advanced Defense Systems and Elbit Systems are already suppliers to Germany in other weapons systems. Rafael develops the "Or Othman" laser interceptor with power exceeding 100 kilowatts and has presented lower-power models, while Elbit provides Rafael with the laser cannon and is developing airborne laser systems. Should Germany proceed with a competitive tender for a laser defense system, Israeli laser manufacturers are expected to compete to supply the system that will protect the Arrow missile batteries in Germany.