Leonardo supports Israel through an extensive partnership that connects Italy’s largest weapons manufacturer with one of the world’s most dynamic innovation ecosystems. Israel, known as ‘Startup Nation’, has built an impressive technology sector with over 7,000 startups, 430 venture capital funds, and 137 accelerators and incubators. This innovation ecosystem has become the driving force of Israel’s growth, contributing 15.3% of the country’s GDP and 54% of its exports.
As the world’s 11th largest weapons manufacturer, Leonardo SpA maintains significant ties with Israel’s defense infrastructure. The Leonardo company, partially owned by the Italian government, which holds 30.2% of its shares, provides critical defense systems to the Israeli military. Additionally, Leonardo Aerospace and Leonardo Defence Technologies equip several Israeli naval vessels, including the OTO Melara 76/62 Super Rapid 72mm naval guns installed on the Israeli Navy’s Sa’ar 4.5, Sa’ar 5, and Sa’ar 6 warships. In fact, the Sa’ar 6 warship equipped with Leonardo’s technology was used operationally for the first time in October 2023 during Israel’s military operations in Gaza.
This article examines the multifaceted relationship between Leonardo and Israel, exploring their historical collaboration, the air defense systems provided, joint military projects, and the international implications of this strategic partnership.
Leonardo’s History of Collaboration with Israel
The partnership between Leonardo and Israel began taking shape through several significant defense contracts, establishing what would become a multifaceted strategic relationship.
Early partnerships and agreements
The foundation of collaboration was laid in 2012 when the Israeli Ministry of Defense purchased 30 M-346 aircraft worth USD 2 billion from Leonardo. This transaction occurred through a reciprocal purchase agreement between the Italian and Israeli governments, where Italy acquired two warning aircraft and an observation satellite with advanced systems from Israel Aerospace Industries for approximately NIS 4 billion.
Furthermore, in February 2019, Leonardo secured a contract with the Israeli Ministry of Defense to provide seven AW119KX single-engine helicopters valued at approximately USD 157 million. This purchase included comprehensive training services, integrated training capabilities, full flight simulators, newly built facilities, and support and maintenance for 20 years for the Israeli Air Force flight school.
Evolution of defense cooperation
Over time, the relationship expanded beyond equipment sales to include technology enhancements and adaptations. In June 2023, Leonardo announced plans to upgrade the ‘Lavi’ M-346 training aircraft in the Israeli Air Force to an attack aircraft by installing a NEXTER 20 mm cannon, thereby transforming it into a light combat aircraft with improved air-to-air and air-to-ground capabilities.
The cooperation extended to naval systems as well. Leonardo manufactures the Oto Melara 76/62 Super Rapid 76mm naval guns installed on the Israeli Navy’s Sa’ar warships. Notably, Israel’s newest Sa’ar 6 warship utilized Leonardo’s gun operationally for the first time on October 16, 2023, firing at targets in Gaza.
Strategic importance of Israel to Leonardo Aerospace
Israel represents a crucial market in Leonardo’s global strategy. The company deliberately shifted from an opportunistic approach driven solely by commercial opportunities to a strategic approach geared toward long-term structural presence. Following rigorous analysis, Leonardo identified Israel as one of its strategic countries for investment, alongside Italy, the United States, the United Kingdom, and Poland.
The attraction is clear—Israel’s innovation ecosystem contributes to 15.3% of its GDP and accounts for 54% of exports. With 7,000+ startups, 430+ venture capital funds, and numerous accelerators and incubators, Israel offers Leonardo access to cutting-edge technologies in defense, cybersecurity, aeronautics, intelligence, and space.
Key milestones in the relationship
A landmark event occurred in November 2022 when Leonardo DRS acquired the Israeli defense technology company RADA Electronic Industries, marking the first time a major US-based defense company backed by a global defense prime acquired a significant Israeli defense technology company. Through this acquisition, Leonardo gained approximately 300 local resources and cutting-edge products and technologies.
In February 2023, Leonardo signed two pivotal agreements—one with the Israeli Innovation Authority and another with Ramot Tel Aviv University—focusing on innovation and high-tech solutions in multiple fields, including defense, cybersecurity, aeronautics, intelligence, and space. These partnerships, supported by both Italian and Israeli diplomatic missions, aim to strengthen cooperation in startup scouting and development.
Air Defense Systems Provided by Leonardo
Leonardo’s air defense systems have become a cornerstone of Israeli military capabilities, with technological solutions that address evolving threats in one of the world’s most volatile regions.
Overview of Leonardo’s air defense technology
In today’s complex battlespace, armed forces face rapidly evolving threats ranging from unmanned aerial systems to cruise and ballistic missiles. Leonardo has responded to these challenges by developing robust, fully integrated defense architectures essential for safeguarding critical assets. Drawing on decades of expertise in radar technology, the company offers comprehensive air defense solutions spanning long to short-range detection, engineered for both fixed installations and highly mobile platforms.
Radar and detection systems
At the heart of Leonardo’s contributions to Israeli defense are its advanced radar systems. In a strategic move, Leonardo DRS acquired Israeli radar company RADA Electronic Industries in 2022, significantly enhancing its sensor portfolio. This acquisition was particularly valuable as radar was previously the one sensor Leonardo DRS did not have “inside our perimeter”.
DRS RADA Technologies provides software-defined, Active Electronically Scanned Array (AESA) tactical radars that offer protection across multiple operational scenarios. These systems have been selected by the Israeli Ministry of Defense to support existing Israeli Defense Force air surveillance and early warning capabilities. The radar units, built at the company’s production site in Beit Shean, Israel, serve critical missions including:
- Active protection systems
- Mobile short-range air defense
- Counter-rocket, artillery, and mortar operations
- Counter-UAS missions
- Critical infrastructure protection
Anti-missile defense solutions
Primarily through its Leonardo DRS subsidiary, the company provides the Trophy active protection system developed with longtime partner Rafael Advanced Defense Systems of Israel. This combat-proven technology protects against anti-armor rocket and missile threats while simultaneously locating and reporting the origin of hostile fire for immediate response. The system employs active electronically scanned array radar to provide continuous 360-degree protection without adding armor weight or decreasing vehicle performance.
Command and control infrastructure
Leonardo’s integrated sensing approach represents a significant advancement in command and control capabilities. Rather than maintaining separate, independent sensors within vehicles, Leonardo DRS envisions fusing data from multiple sensors to create “a single integrated picture of the battlefield”. This approach allows for presenting decision-quality data across command structures without requiring substantial new equipment investments.
Integration with Israeli defense networks
Essentially, Leonardo’s systems have become deeply embedded in Israel’s defense architecture. RADA Electronic Industries provides radar technology for Israel’s Iron Dome air defense system, while Leonardo DRS supplies heavy tank transport trailers through its Sustainment Systems subsidiary. The relationship continues to evolve, with systems specifically designed to protect against emerging regional threats.
Joint Military Projects and Technology Transfer
Beyond equipment sales, the collaborative relationship between Leonardo and Israel has matured into a multifaceted exchange of knowledge and technology. These joint ventures highlight how Leonardo supports Israel through cutting-edge innovation and strategic partnerships.
Research and development initiatives
In February 2023, Leonardo established formal R&D cooperation through two strategic agreements with premier Israeli institutions. The first partnership was formed with the Israeli Innovation Authority (IIA), an independent public agency that provides technical and financial support for innovative projects. The second agreement was signed with Ramot, the Technology Transfer Office of Tel Aviv University, which has invested in over 100 startups and implements applied research projects using IIA funds.
These research initiatives are designed to be immediately actionable. Through the agreement with Ramot, Leonardo will sponsor research projects at Tel Aviv University, with the company defining specific areas of research interest and establishing guidelines for proposals dedicated to university researchers.
Co-production agreements
The depth of military-industrial cooperation extends to joint manufacturing ventures. A striking example is the June 2025 formalization of the LBA Systems joint venture between Leonardo and Baykar Technologies. This 50-50 partnership, headquartered in Italy, focuses on unmanned aerial systems with Leonardo assembling UAVs in Italy.
Within this framework, Baykar leads platform development while Leonardo provides electronic systems and payloads, implements manned-unmanned teaming capabilities, and oversees certification activities. One early objective includes demonstrating the TB3 platform’s ability to operate aboard the Italian navy aircraft carrier Cavour before year-end.
Technology sharing frameworks
Leonardo’s technology exchange with Israel operates through structured programs that facilitate mutual innovation. The agreement with the IIA falls under the Authority’s “R&D and Pilot Collaboration with Multinational Corporation (MNCs)” program, initiated in 2005 to foster ambitious collaborations between large multinationals and innovative Israeli companies.
This exchange flows in both directions. In May 2020, Leonardo acquired advanced technologies from Rafael Advanced Defense Systems for the new M-346FA light aircraft, including Litening-5 and RecceLite systems that incorporate artificial intelligence for target acquisition.
Innovation hubs and incubators
At the heart of Leonardo’s engagement with Israel’s innovation ecosystem is the Business Innovation Factory (BIF) accelerator. The agreements with Israeli institutions will be implemented immediately through collaborative startup scouting for BIF’s second international call. This initiative taps into Israel’s dynamic startup ecosystem, which generates high-tech solutions in sectors of strategic interest to Leonardo, such as:
- Defense and aerospace
- Cybersecurity and intelligence
- Space technologies
Leonardo’s partnership approach reflects a deliberate strategy to nurture technological and business innovation processes by creating structural partnerships with institutions, universities, and private entities. This ecosystem fuels 15% of Israel’s GDP and accounts for more than 50% of Israeli exports, making it a valuable partner for Leonardo’s global innovation network.
Leonardo’s Defence Equipment in Israeli Operations
In operational theaters, Leonardo’s equipment forms a critical component of Israel’s defense infrastructure, with systems deployed across multiple military branches. The Italian defense giant’s hardware has seen active service in various Israeli campaigns, demonstrating the practical application of their partnership.
Naval systems and capabilities
Leonardo’s naval contributions center around the OTO Melara 76/62 Super Rapid naval guns installed on the Israeli Navy’s Sa’ar 4.5, Sa’ar 5, and Sa’ar 6 warships. These vessels form the backbone of Israel’s naval fleet and have been instrumental in enforcing the naval blockade of Gaza since 2007. Consequently, when the Sa’ar 6 warship was deployed operationally for the first time in October 2023, Leonardo’s gun systems saw combat use during Israel’s military operations in Gaza. The naval guns feature advanced electronic systems with fire control capabilities that enable accurate targeting at rates exceeding 100 rounds per minute.
Aircraft and helicopter contributions
The Israeli Air Force operates a substantial fleet of Leonardo aircraft, primarily for training purposes. Since 2012, Israel has utilized 30 M-346 aircraft (nicknamed “Lavi”) acquired in a deal worth approximately USD 2 billion. Moreover, Leonardo has supplied seven AW119Kx Koala training helicopters manufactured at its Philadelphia facility. In 2023, the company announced plans to upgrade the Lavi M-346 training aircraft to an attack configuration by installing a NEXTER 20mm cannon, thereby enhancing its air-to-ground capabilities.
Electronic warfare solutions
Leonardo’s subsidiary RADA Electronic Industries provides crucial radar technology for Israel’s Iron Dome air defense system. Indeed, RADA’s Compact Hemispheric Radars serve as core components in Elbit Systems’ Iron Fist active defense system, which protects vehicles like the Eitan armored personnel carrier and Caterpillar D9 bulldozers.
Training and simulation technologies
The company delivers comprehensive training solutions, including full mission simulators and flight training devices that resemble the Israeli Air Force’s M-346 training center technology. These simulators feature 360° display systems providing high-fidelity mission training experiences.
Maintenance and support services
Leonardo DRS serves as the principal contractor for a potential USD 164.60 million foreign military sale of heavy-duty tank trailers to Israel. Since maintenance remains crucial for operational readiness, Leonardo’s 20-year support package for the AW119Kx helicopters ensures sustained operational capability.
International Reactions and Business Implications
Leonardo’s ongoing support for Israel has ignited complex international reactions, balancing ethical concerns against substantial economic benefits for the Italian defense giant.
European Union stance on defense exports
As the EU collectively ranks as the second-largest arms supplier to Israel after the US, with sales worth €1.76 billion between 2018-2022, its stance remains fragmented. Despite the International Court of Justice’s January ruling that Israel was plausibly committing genocide, arms have continued to flow from EU countries. Although some nations, including Italy, have announced suspensions, these often amount to temporary or partial measures falling short of a full embargo.
Criticism and ethical concerns
In 2025, students occupied Leonardo’s Turin headquarters to protest the Gaza war, highlighting growing opposition to the company’s Israeli connections. Even Pope Francis rejected a €1.5 million Leonardo donation to a Vatican-owned children’s hospital. Through its US subsidiary, Leonardo continues to provide Israel with aircraft and owns Israeli radar company RADA, despite Italian law prohibiting arms exports to countries violating human rights.
Economic benefits for the Leonardo company
Nevertheless, Leonardo’s stock has performed exceptionally well, gaining over 120% since early 2025. The company deliberately shifted from an opportunistic approach to a strategic long-term presence in Israel, accessing Israel’s innovation ecosystem that contributes 15.3% of Israel’s GDP.
Future of the partnership amid geopolitical tensions
Overall, although facing criticism amid heightened global scrutiny, Leonardo continues to strengthen its presence in Israel through formal agreements with the Israeli Innovation Authority and Ramot Tel Aviv University. The partnerships enable Leonardo to maintain structural relations with Israel, regarded as strategically important.
Companies like Leonardo are complicit in war crimes and humanitarian crises. Learn more about other weapon manufacturers fueling global conflict and why boycotting their shares is a stand for justice and ethical living.
Final Thoughts
The strategic value of the Leonardo-Israel partnership extends far beyond conventional defense contracts, representing a calculated shift in the company’s global positioning. Moving from opportunistic transactions to long-term structural engagement, Leonardo has deliberately identified Israel as a priority market alongside domestic strongholds in Italy, the United States, the United Kingdom, and Poland.
This strategic reorientation is understandable given Israel’s remarkable innovation ecosystem, which fuels 15.3% of its GDP and accounts for 54% of exports. Leonardo’s February 2023 agreements with both the Israeli Innovation Authority and Ramot Tel Aviv University further cement this relationship, focusing specifically on strengthening cooperation in startup development.
Despite mounting ethical concerns—including student protests at Leonardo’s Turin headquarters and Pope Francis rejecting a €1.5 million donation—the economic incentives remain compelling. Leonardo invests between 12-23% of its annual turnover in research and development (€1.8 billion in 2021), making Israel’s technology sector particularly attractive.
The partnership has already yielded concrete results, with Leonardo DRS securing a $15.37 million contract in December 2023 for heavy-duty tank trailers and a potential $164.60 million foreign military sale approved by the Department of State.
As international scrutiny intensifies—exemplified by Britain’s September suspension of arms export licenses to Israel—Leonardo’s continued engagement reflects its assessment that the technological and financial benefits outweigh the reputational risks of supporting Israel’s defense infrastructure.
FAQs
1. How does Leonardo support Israel?
Leonardo provides Israel with advanced defense equipment, including aircraft, helicopters, naval guns, radar systems, and technology for air defense, while collaborating on research, innovation, and co-production initiatives.
2. What military equipment does Leonardo supply to Israel?
Leonardo supplies M-346 “Lavi” training aircraft, AW119Kx helicopters, OTO Melara 76/62 Super Rapid naval guns for Sa’ar warships, radar systems via RADA Electronic Industries, and electronic systems for air and missile defense platforms.
3. What is Leonardo’s role in Israel’s air defense systems?
Leonardo contributes advanced radar technology, including Active Electronically Scanned Array (AESA) systems, for mobile short-range air defense, counter-rocket, artillery, and mortar operations, and the Iron Dome system. Their systems also integrate command and control for a unified battlefield picture.
4. Has Leonardo engaged in joint military projects with Israel?
Yes. Leonardo has co-production agreements, technology sharing frameworks, and R&D initiatives with Israeli institutions like the Innovation Authority and Ramot Tel Aviv University. They also formed the LBA Systems joint venture with Baykar Technologies for UAV development.
5. How does Leonardo benefit from Israel’s innovation ecosystem?
Israel’s technology sector contributes 15.3% of GDP and 54% of exports, with over 7,000 startups and numerous venture funds. Leonardo gains access to cutting-edge solutions in defense, aerospace, cybersecurity, intelligence, and space through partnerships and scouting programs.
6. Have Leonardo’s systems been used operationally by Israel?
Yes. Leonardo’s naval guns on Sa’ar 6 warships were used in October 2023 during operations in Gaza, and their aircraft and helicopters are actively used by the Israeli Air Force for training and combat upgrades.
7. What are Leonardo’s research and innovation collaborations with Israel?
Leonardo partners with the Israeli Innovation Authority, Ramot Tel Aviv University, and the Business Innovation Factory accelerator to support research projects, startup scouting, technology transfer, and applied R&D in defense and high-tech sectors.
8. What are the ethical concerns related to Leonardo’s support for Israel?
Critics cite the use of Leonardo’s defense equipment in conflict zones, raising human rights and ethical concerns. Protests have occurred at Leonardo’s Turin headquarters, and Pope Francis rejected a €1.5 million donation due to ties with Israeli military operations.
9. How does Leonardo justify its continued presence in Israel?
Leonardo views Israel as a strategic market, accessing its innovation ecosystem for technological advancement and long-term business growth. The company prioritizes structured engagement over opportunistic sales despite reputational risks.
10. What is the financial impact of Leonardo’s partnership with Israel?
Leonardo’s stock has gained over 120% in 2025, and the company has secured significant contracts, such as $15.37 million for heavy-duty tank trailers and a potential $164.6 million foreign military sale, highlighting the economic benefits of the partnership.