The country will invest some two billion kronor to purchase IRIS-T surface-to-air short-range missiles, and 1.5 billion kronor for the vehicles used to deploy them, the Swedish armed forces said in a separate statement.
"This is a significant strengthening of our air defence," Defence Minister Pal Jonson told reporters at a press conference at an air defence regiment in Halmstad in southern Sweden.
The equipment will be used to "shoot down fighter jets, cruise missiles, and various types of drones," he added.
Defence group Saab confirmed it had received an order from the Swedish Defence Materiel Administration (FMV) for sensors and command-and-control systems for a ground-based air defence system, worth 2.1 billion kronor.
Deliveries will take place between 2027 and 2028, the group said.
"The radar can, for example, detect drones no larger than a milk carton from over four kilometres (2.5 miles) away," Jonson said.
Sweden has accelerated its increase in military spending following Russia's full-scale invasion of Ukraine and its own NATO membership in 2024.
After the Cold War, Sweden drastically slashed its defence spending as it focused military efforts on international peacekeeping missions.
It reversed course following Russia's 2014 annexation of Crimea, and started increasing military expenditure.
Sweden plans to allocate 300 billion kronor to defence spending over the next decade.
nzg/ef/po/cw
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