Israeli Defense Ministry Reopens Attack Drone Tender, Adds Ondes to Winning Consortium
A few weeks after the Israeli defense companies KELA and Isatop won a tender to supply attack drones to the IDF, the Defense Ministry unexpectedly reopened the tender and included Aerobotics, part of the US-based Ondes Group, as a third supplier. The tender is part of the "Digital Bat" program, through which the IDF plans to establish a large-scale fleet of advanced, low-cost tactical attack drones capable of autonomous swarm operations.
KELA and Isatop were initially announced as exclusive suppliers in mid-May and were expected to jointly lead the system's assembly, integration, and operation. However, shortly after their win, the companies were surprised to learn that their contract scope would be reduced due to the tender's reopening and Aerobotics' inclusion. Aerobotics had competed in the original tender but did not win. The decision to reopen the tender and add Aerobotics has raised questions within the defense and defense-tech sectors about the Defense Ministry's rationale, which appears to favor Ondes.
Defense sources explained that while KELA and Isatop won the core tender, the Ministry retains the right to contract additional companies to increase production redundancy and diversify suppliers, depending on drone production rates and IDF satisfaction. Financial details of the contracts remain classified, but estimates suggest the program could be worth several hundred million shekels.
Ondes, which acquired Aerobotics in 2023 for about $15 million through a stock swap, has been aggressively expanding in Israel's defense sector, recruiting former Rafael executives and raising nearly $1 billion last year. Recently, former Mossad chief Dedi Barnea joined Ondes as global chairman and president, and former IDF and Defense Ministry officials are also joining the company.
The IDF views the tactical attack drones as critical for modern battlefield air capabilities. Ondes stated that the tender win strengthens its position in tactical airstrike systems and reflects confidence in its engineering and operational experience. Meanwhile, the Defense Ministry declined to comment on the classified tender proceedings, and KELA did not respond to requests for comment.
