Washington has demanded that some of Israel's Arrow 3 batteries for sale to Germany be manufactured in the US, KAN News reported.

Since the U.S. was involved in the development of the Arrow 3 system, their approval of the upcoming deal between Israel and Germany is required. While the U.S. approved the deal in principle, it also demanded that development efforts between the two countries continue and that production of the systems for Germany not affect the relationship.

The Arrow 3, one of Israel's most advanced air defense systems, is capable of intercepting ballistic missiles at altitudes over 100 kilometers with a claimed range of 2,400 kilometers. The system, developed by Israel Aerospace Industries, includes components developed in the United States, which has invested billions of dollars in it.

The Jerusalem Post reported in April that Germany had received approval from Israel and the U.S. to buy the Arrow 3 missile defense system.

Earlier this month, Defense Minister Benny Gantz spoke with his U.S. counterpart, Lloyd Austin, about the proposal, which, if approved, would be the largest defense deal in Israeli history, reaching 3 billion euros.

Germany has demanded that the first Arrow system be operational in the country by 2025.