Defense Ministry to procure 20,000 Israeli-made drones

The Defense Ministry’s Defense Research and Development Directorate is preparing to issue a multi-million-shekel tender in the coming weeks to purchase 20,000 Israeli-made drones, a source close to the matter told Globes. The companies that win the tender will provide various types of drones, including attack, reconnaissance and intelligence aircraft, in several shipments over five years. It is estimated that a group of Israeli companies will participate in the tender, including Dronex, Extend, Robotican, Tehero, Heaven Drones and Copter Peaks.

The tender would mark a change in strategy for the Israeli military, which in recent months has favored Chinese drone manufacturers over Israeli drone manufacturers. As Globes previously reported, the Israeli military has purchased thousands of Chinese drones made by DJI and Autel — two companies blacklisted by the US Department of Defense.

The request was made due to the urgent need to use drones in urban warfare as part of the war in Gaza, and due to the fact that the IDF was not prepared for this. The drones donated to the IDF, which were widely used, are also manufactured by the same Chinese companies.

Relying on Chinese drones is a double-edged sword for the Defense Ministry. It has allowed for quick and cheap equipment in the short term. But it leaves the IDF with thousands of drones manufactured by Chinese state-owned companies, which the United States says could pose a national security threat. It also increases Israel’s dependence on Chinese-made purchases and spare parts, which could be dangerous if China, which sees itself as an ally of Iran, Russia, Qatar and Hamas, decides to ban the sale of equipment to Israel.

Moreover, Chinese drones, which are an off-the-shelf product also sold on the civilian market, are having difficulty operating on Israel’s northern front. Hezbollah has a system called Aeroscope to identify Chinese drones and locate their operators. Therefore, the IDF understands the need not to rely on foreign drones, and the importance of supporting the long-term ability of Israeli industry to provide the strategic advantage of local production of drones, which are changing the face of the battlefield, as is happening in Ukraine, for example.

supply and demand gap

Israel’s drone industry is still not ready for orders of tens of thousands of units, which is one reason the IDF has previously turned to the Chinese industry, which dominates the global off-the-shelf drone market with high-quality cameras and a short learning curve for soldiers being trained to use them, some of whom are already familiar with them from the civilian market.

In order to accelerate the pace of the Israeli industry, local companies were asked to build production lines and hire a sufficient number of technology and assembly workers with relevant experience and knowledge for the task. Therefore, it is believed that when the tender is published, the drones will be supplied in the medium to long term rather than for immediate delivery. By then, the companies hope to establish production lines and perhaps even advanced production workshops capable of producing drones in larger numbers.

Not all of the drones currently in the possession of Israeli companies can meet the army’s requirements, due to the low price requirements and the high costs of raw materials and components. As far as is known, the price that the IDF will ask for is still subject to change, but it is in the range of NIS 10,000 to NIS 20,000 per drone, with the lower limit being too low from the point of view of many companies. While Chinese companies such as DJI and Autel provide the army with a ready-made and cheap product, Israeli companies will be obligated to assemble the drones with the components that will be sought in the military tender, with some of these components, such as the thermal sensor, costing thousands of dollars per unit.

The low price levels demanded by the IDF make it less likely that drones made by Israeli defense technology giants Elbit Systems and Rafael will enter the tender. Rafael’s Spike Firefly drone, an attack drone that weighs 2 kilograms and can stay in the air for about 15 minutes with a range of up to one kilometer, costs far above the IDF’s price threshold. Elbit’s Thor drone is even more expensive. In the surveillance drone category, Israeli companies face a major challenge, as the price differential between Chinese and Israeli drones is particularly large, compared to attack drones.

Israeli companies

An Israeli company is expected to submit bids for the Israeli military’s drone tender. ExtendAnother Israeli company based in Ramat Hahayal, Tel Aviv, which already supplies the Israeli military as well as civilian installations such as offshore gas rigs, produces relatively inexpensive drones such as the Wolverine, a multi-role drone that the Israeli military can mount with thermal cameras, weapons, loudspeakers or door-opening arms. Another Israeli company that could bid for the tender is Roboticanwhich produces the Goshawk – a drone that can transform into a miniature robotic vehicle capable of performing a range of intelligence and attack missions.

Other companies likely to compete for the IDF tender include: threeABC, a company that specializes in drones with encrypted communications that evade enemy electronic combat systems, could introduce its White Widow drone. Dronexwhich makes a series of multi-role DR aircraft – the simplest of which is the DR-750, which can provide aerial surveillance for up to 35 minutes; Heaven Drones It provides an urban drone that can stay in the air for 37 minutes and can carry up to 10 kilograms; Copterpix It offers a series of drones under the ERE brand.

There was no response from the IDF spokesman.

This article was published in Globes, Israeli Business News – en.globes.co.il – on August 29, 2024.

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