Breaking News: Israel To Equip IDF Ground Units With Thousands Of FPV Drones In New Multimillion Contract.

On August 21, 2025, the Israeli Ministry of Defense announced that local drone manufacturer Xtend has won a multimillion-dollar tender to supply thousands of First Person View (FPV) drones to the IDF Ground Forces. The decision comes amid a global race to scale up drone production, reflecting the growing role of unmanned systems in modern conflicts. With regional security challenges intensifying, the deal highlights Israel’s strategy to boost domestic defense industries while adapting to new forms of battlefield engagement. The procurement is expected to redefine the operational capacity of IDF units in the near term.

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Founded in 2018, Xtend has quickly gained prominence in the defense market by combining virtual reality interfaces with AI-guided autonomous systems (Picture source: Army Recognition Group)

Xtend will deliver 5,000 FPV drones, each with a 10-inch frame and a payload capacity of up to 2.5 kilograms, allowing them to carry small explosive charges. The drones are designed for offensive missions and will be supported by operating stations and virtual reality headsets for immersive control. Unlike larger and more complex UAV systems, these FPV drones are relatively inexpensive, with each unit estimated at around NIS 3,500, making them suitable for wide-scale deployment across combat battalions. Comprehensive training programs led by Xtend will accompany the rollout to ensure fast integration within IDF ground units.

Founded in 2018, Xtend has quickly gained prominence in the defense market by combining virtual reality interfaces with AI-guided autonomous systems. The company’s drones were initially conceived for the gaming industry but were adapted to military needs, including tunnel mapping in Gaza, intercepting Hezbollah UAVs, and providing tactical support in operations targeting Iranian assets. Beyond Israel, Xtend has already secured contracts with the U.S. Department of Defense, including a $10 million deal for its Scorpio drone swarms. This operational record has made the company a preferred choice for both Israeli and foreign customers.

FPV drones such as Xtend’s represent a major shift from traditional reconnaissance UAVs toward expendable, low-cost attack systems. In terms of concept, they echo developments in Ukraine, where both Russia and Ukraine have deployed millions of FPV drones to disrupt enemy armored and infantry formations. Compared to heavier loitering munitions such as the Switchblade or Israel’s own Hero series, Xtend’s drones offer an affordable, mass-produced option, albeit with shorter range and smaller payloads. The tender decision was not without controversy, however, as competing companies criticized the use of a Chinese-made video transmitter in the drone, raising concerns over cyber vulnerabilities despite the IDF’s assurances of sterilization measures.

Strategically, the procurement signals Israel’s determination to integrate drone warfare into its conventional ground operations at scale. It aligns with Maj. Gen. (Res.) Amir Baram’s broader policy to strengthen domestic industries under the “Blue and White” procurement strategy, reducing reliance on foreign suppliers while fostering a robust technological ecosystem. In the regional context, the IDF’s mass deployment of FPV drones responds to emerging threats from Hezbollah and Hamas, who have themselves adapted commercial drones for attacks. At the geopolitical level, the acquisition reflects a shift toward drone-centric warfare seen globally, with Israel aiming to maintain technological parity with great powers and adversaries alike.

The deal, valued at around NIS 20 million (approximately $5.3 million), provides for 5,000 drones with an option for an additional 5,000 units, effectively doubling the potential fleet size. This positions the IDF to introduce drones as a standard capability at company level within its ground forces. For Xtend, the tender consolidates its role as a key supplier after already establishing production capacity in both Israel and Tampa, Florida, to support U.S. and Israeli demand. Previous contracts, including the U.S. Department of Defense order, confirm its growing footprint in the global defense drone market.

The awarding of this tender to Xtend underscores the IDF’s strategic pivot toward mass-produced, affordable FPV drones as an integral tool of ground combat. By embracing local industry and adapting lessons from ongoing conflicts such as Ukraine, Israel positions itself to counter near-term threats while preparing for longer-term challenges in drone warfare. Beyond the financial dimension, the deal marks a milestone in embedding drone systems into the everyday fabric of IDF operations, reinforcing both national defense capabilities and Israel’s status as a significant innovator in unmanned technologies.