Solarum Holdings Ltd., which develops and manufactures systems, products, and electro-mechanical and electronic equipment for the defense market, as well as products based on QCL laser technology for military-defense applications – announced that it has received approval for a grant from the Israel Innovation Authority under a special track supporting technological innovation in industry, in cooperation with government entities, through a sub-track for joint support with the Defense Ministry .

The grant is intended for an initial milestone in developing a high-power PCSEL QCL laser beyond current capabilities, for both civilian and military uses, with a budget of up to approximately NIS 4.5 million designated for proof of production capability, with an execution period of up to 12 months retroactively starting from March 2025.

Technological Advantages

The PCSEL QCL laser combines high power with exceptional precision, thanks to the combination of quantum cascade laser technology with optical control using a photonic crystal. This enables the creation of a strong and focused laser beam suitable for military missions requiring long range and precise targeting capability. Additionally, the development is intended to be smaller, lighter, and cheaper than existing systems, facilitating its integration into mobile platforms such as drones, aircraft, ships, and ground stations.

Possible uses include remote sensing, detection of hazardous materials, target tracking, active defense against drones and other threats, and even focused communication and signaling. The Defense Ministry invests in this development to maintain a significant technological advantage over adversaries and to achieve powerful, lightweight, and low-cost laser systems deployable on a large scale in diverse combat environments. Cooperation with the Innovation Authority and the civilian industry aims to accelerate development and produce dual-use solutions – military and civilian.

The Innovation Authority’s participation rate in the approved budget is 55%, approximately NIS 2.5 million, provided that by October 1, 2025, the company demonstrates the ability to provide complementary funding for the approved budget throughout the execution period. The company intends to approach government entities for securing the complementary funding and estimates that they will provide the required financing by the stated date.

The purpose of the grant track is to support research or development and address market failures existing in new and emerging innovation systems, including those caused by regulation and governmental influence, expressed in high technological risk and execution complexity, limited access to pilot sites, or challenges in obtaining regulatory approvals.

The PCSEL QCL (Photonic Crystal Surface Emitting Laser – Quantum Cascade Laser) is a quantum cascade laser (QCL) that integrates optical control via a photonic crystal built into the laser component, thereby combining the power and spectral flexibility of QCL with the beam quality and directional control of the photonic crystal. Currently, no high-power laser of this type exists, and if its development is successfully completed, it will expand the company’s laser applications and significantly reduce the size, weight, and cost of QCL-based systems.

Matan Rabin, CEO of Solarum, said: “We are proud and grateful to the Innovation Authority for granting us this funding, which represents a significant vote of confidence in Solarum’s technological capabilities and the application potential of PCSEL QCL lasers in defense and civilian markets. We hope and believe that the development we are leading will bring a breakthrough in high-power laser technology, with improved performance compared to existing solutions, and will open new opportunities for strategic collaborations and expansion of the company’s activities in advanced technology arenas worldwide.”

Solarum Holdings Ltd. (Solarum), formerly 3D IAM Digital Manufacturing Ltd., is traded on the Tel Aviv Stock Exchange and completed a merger with Solarum Electronics Ltd. in early September 2024. Solarum operates in the industrial-defense sector and, through itself and subsidiaries, develops and manufactures systems, products, and electro-mechanical and electronic equipment for military markets and leading defense companies, as well as QCL laser-based products for military-defense applications.

The electrical, electro-mechanical, and control systems produced by Solarum (via Solarum Electronics) are intended for the naval, land, air, and space divisions in projects currently developed in Israel. Solarum Electronics, founded in 1987, has shown organic growth in revenues and profits in recent years and simultaneously implements a mergers and acquisitions strategy, having acquired three companies in its fields of activity between 2017 and 2020. Solarum Electronics operates three production plants in Israel, employs about 140 workers, and holds certifications from leading defense companies.

In addition, Solarum is developing QCL laser technology, and following the merger with Solarum Electronics, it is working on adapting it for diverse military applications in the defense market. The controlling shareholder of Solarum is M&M Capital Group (2012), jointly owned by Itay Moldavsky and David Maimon. The company’s CEO is Matan Rabin.