Ondas deploys $1 billion into Israeli defense sector

Ondas Autonomous Systems has directed $1 billion into Israel over the past year, according to company leadership.

Dr. Judith Hocherman-Frommer, the company's CTO and chief engineer, disclosed the figure at the UVID DroneTech 2026 conference in Tel Aviv. The investment strategy relies on acquiring and capitalizing in existing defense technology firms. Ondas completed 27 acquisitions in the last 18 months. The majority of these targets were Israeli companies, while the remainder came from the United States and Europe.

Hocherman-Frommer stated that the company invests in each acquired entity to maximize capabilities and drive collaboration. The goal is to solve operational challenges in real time. This approach supports a vertically integrated model that spans development, manufacturing, and deployment. The portfolio includes autonomous drones, counter-UAS systems, robotic ground platforms, unmanned aircraft, and intelligence, surveillance, and reconnaissance systems.

The firm operates under the motto "Bots before boots," placing autonomous systems ahead of human warfighters. Hocherman-Frommer noted that threats are evolving within months rather than years. This rapid pace requires strong integration between Israeli operational innovation and global manufacturing infrastructure. She described the current battlefield as a "democratization of low-cost threats at massive scale" that collides with multi-year development cycles and legacy architectures.

The defense industry must shift its operating model to address this gap. Hocherman-Frommer argued that responses can no longer rely on development programs taking years or expensive standalone missiles designed to counter low-cost drone swarms. Instead, the sector needs simpler and faster systems. These systems must be manufactured in large quantities at high quality and affordable cost. Autonomy is central to this model, allowing systems to operate independently while human operators provide high-level oversight. She emphasized that "Speed is the new strategic advantage."

These comments followed a recent announcement of a purchase order for the Digital Bat program. Digital Bat is a next-generation tactical attack drone designed for affordable autonomous strikes. The company projects demand could reach tens of thousands of units. The order marks a transition from development to serial production and large-scale manufacturing.

Ondas plans to use its pending acquisition of ARAN Defense, an Israeli engineering and manufacturing firm, to establish dedicated production lines. These lines will manufacture thousands of systems. The acquisition adds engineering, industrialization, systems integration, supply-chain management, and manufacturing capabilities to the Ondas portfolio. Airobotics, an Israeli autonomous systems subsidiary, will lead the Digital Bat program. It will handle development, autonomy software, mission systems, and integration. ARAN Defense will provide manufacturing and industrial support after the acquisition closes.

Oshri Lugassy, co-CEO of Ondas Autonomous Systems, stated that manufacturing thousands of affordable autonomous systems requires more than advanced drone technology. The company needs to transition rapidly from engineering into efficient, repeatable production. This process must maintain the reliability and quality demanded by defense customers. The planned integration with ARAN Defense is expected to provide the industrial infrastructure needed for this scale, expanding the autonomous defense portfolio.