Elbit Systems has entered into a new agreement with German submarine builder TKMS, strengthening Israel–Germany defense cooperation despite continued boycott calls from the pro-Palestine Boycott, Divestment and Sanctions (BDS) movement.

In an announcement on Saturday, TKMS chief executive Oliver Burkhard said the latest deal, formalised through a memorandum of understanding signed on Wednesday, will focus on enhancing technological capabilities while also strengthening strategic ties between Germany and Israel, News.Az reports, citing The New Arab.

"In today's complex security environment, close cooperation between partners who share a similar worldview is essential to ensuring stability and resilience," he said. 

Elbit Systems president and CEO Bezhalel Machlis said: "By combining the technological strengths and operational experience of both companies, we aim to provide advanced solutions that will meet the evolving needs of maritime forces." 

TKMS already maintains established links with the Israeli Navy, having previously supplied four submarines worth billions of shekels, and with Israel Aerospace Industries (IAI), with which it has collaborated on supplying unmanned submarine systems to the German Navy,  the Jerusalem Post reported.  

Elbit has also operated in Germany for several years, supplying maritime products including electronic warfare systems, the Sigal unmanned aerial vehicle (UAV), and sonar systems. 

Germany remains a key partner for Israeli defence firms, with companies including Elbit, Rafael, and IAI providing major systems to German forces, such as IAI’s Arrow-3 missile defence system and Heron TP drones for the German Air Force, alongside Rafael’s Spike anti-tank missiles. 

The deal comes amid sustained pro-Palestine protests targeting Elbit in recent years, which intensified during the genocidal war in Gaza, with campaigners arguing the company supplies around 85% of Israel’s drones and land-based military equipment. 

Germany has also faced domestic and international criticism from anti-war activists, as it is the second-largest exporter of arms to Israel, following the United States.

In August 2025, Berlin announced a partial suspension of arms exports to Israel amid growing public pressure over the war in Gaza. This included the restriction of weapons systems potentially usable on the enclave while maintaining approvals for equipment deemed necessary for self-defence against external threats. 

However, in November, the government lifted the suspension following the October announcement of a ceasefire agreement between Israel and Hamas. 
The BDS movement has repeatedly accused Elbit of "involvement in war crimes, crimes against humanity and genocide".  

Elbit claims that, due to largely activist-led campaigns and divestment pressure, it has lost more than 35% of contracts in the Global South in 2024, according to recent company reporting. 

News.Az 

By Ulviyya Salmanli