A week after announcing the appointment of former Mossad chief David Barnea as president and chairman of its defense division, US company Ondas announced that it had won an Israeli Defense Ministry tender to develop the next generation of attack drones for the IDF.
In doing so, Ondas beat companies such as Elbit Systems and Rafael, which have already unveiled and supplied attack drones to the IDF.
According to the company, the multimillion-dollar strategic "Digital Bat" program is intended to provide a low-cost, next-generation tactical drone platform powered by advanced software and designed to meet the IDF's evolving operational requirements for systems that can be supplied quickly and inexpensively.
Ondas is a Nasdaq-listed holding company valued at $5.3 billion, up 10% since the announcement of Barnea's recruitment. Its Israeli branch is headed by Brig.-Gen. (res.) Oshri Lugassy, a former IDF chief engineering officer and Rafael executive.
Over the past year, the company has acquired a series of small Israeli defense companies: drone manufacturer Airobotics, which also produces interceptor drones; Omnisys, which develops artificial intelligence systems for mission planning, optimization, and combat resource management; BIRD Aerosystems, which develops and manufactures airborne defense systems and maritime and aerial mission solutions; Roboteam, which develops ground robotic systems for military and security applications; Sentrycs, which develops technology for detecting, monitoring, and intercepting drones; and INDO, which deals in heavy engineering equipment for civilian and defense applications.
Ondas's attempt to take control of mPrest, which manufactures the command-and-control system used by Iron Dome, was blocked by the Defense Ministry. The ministry has been examining the US company for months after it raised $1 billion from an investor whose identity it has declined to disclose.
"This strategic award represents an important validation of the defense technology platform we are building at Ondas and our growing ability to serve as a prime contractor for complex, next-generation defense programs," said Eric Brock, chairman and CEO of Ondas.
"The Israeli Ministry of Defense operates at the forefront of modern defense technology and has some of the most demanding operational requirements in the world. Their selection of Ondas reflects confidence in our internal engineering capabilities, operational experience, and ability to rapidly translate changing battlefield requirements into scalable, mission-ready systems."
Brock added, "We are witnessing a fundamental shift in defense priorities toward affordable autonomous systems that can be produced and deployed at meaningful scale. The Drone Dominance program launched by the US Department of War, a $1.1 billion initiative focused on rapidly fielding low-cost unmanned systems, including one-way attack drones, is a clear example of this broader trend. This program reflects similar operational priorities: providing frontline forces with cost-effective, scalable, and rapidly deployable tactical strike capabilities. We believe Ondas is well positioned to address this growing demand across Israel, the United States, and other allied defense markets."
Advanced tactical aerial capabilities for IDF infantry battalions
The Defense Ministry's new tender is intended to provide IDF infantry battalions with advanced tactical aerial capabilities that can be rapidly deployed and adapted to complex and changing operational environments. Tactical attack drones are becoming an increasingly important component of modern military operations, providing troops with responsive, precise, and flexible aerial capabilities at the unit level.
The development effort will focus on the aerial platform, autonomous functionality, mission integration, systems engineering, production readiness, and compatibility with broader command-and-control environments.
"The award represents an important opportunity to apply Ondas' autonomous systems capabilities to one of the most important evolving requirements on the modern battlefield," Lugassy said.
"Tactical forces increasingly require aerial systems that can be rapidly deployed, integrated directly into operational workflows, and adapted as missions and threats evolve. Our approach is to develop the full operational capability, not just a single drone. This includes the platform, autonomy, mission software, system integration, manufacturing infrastructure, and operational support required to move from development to meaningful field deployment."