Spain’s Ministry of Defense cancels a $325 million contract with Israeli defense firm Rafael Advanced Defense Systems for SPIKE LR2 missiles, reflecting a shift in military procurement amid regional tensions.

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Spain’s Ministry of Defense has officially canceled a contract valued at approximately $325 million with Israeli defense manufacturer Rafael Advanced Defense Systems. The agreement, approved in early October 2023, involved the purchase and local production of SPIKE LR2 anti-tank missile systems through Rafael’s Spanish subsidiary, Pap Tecnos. The decision to withdraw from this contract comes amid evolving geopolitical considerations and ongoing regional conflicts.

The contract was initially approved by the Spanish Council of Ministers on October 3, 2023, just days before the outbreak of hostilities involving Hamas and Israel. It included the acquisition of 168 SPIKE LR2 missile systems, intended to modernize Spain’s military capabilities. The missiles were to be produced locally in Spain, supporting domestic defense industry employment and technology transfer.

According to official statements, the Ministry of Defense has revoked the license granted to Rafael for manufacturing these missile systems in Spain. The government is reportedly exploring alternative suppliers to fulfill Spain’s defense needs.

🔴#Industria | @Defensagob inicia los trámites para revocar las licencias del misil Spike LR2 y del lanzacohetes #Silam 🪖 @EjercitoTierra @ElbitSystemsLtd @emegroup_ @RheinmetallAG @AmparoValcarce1 https://t.co/s4opqPcHRP 🛡️

— Infodefensa (@Infodefensa) June 3, 2025

The text reads. #Industry | The Spanish Ministry of Defense (@Defensagob) begins the procedures to revoke the licenses for the Spike LR2 missile and the rocket launcher.

This move aligns with broader discussions within Spain’s political landscape regarding arms procurement policies and international partnerships.

Spain’s cancellation of the Rafael contract reflects a reassessment of defense procurement strategies in light of recent geopolitical developments.

The government continues to evaluate options to ensure the modernization of its armed forces while considering diplomatic and economic factors.

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