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                                                                      Exhibit 4a


                           ELECTRIC FUEL CORPORATION



                         SECURITIES PURCHASE AGREEMENT



December 28, 1999


TO THE PURCHASERS SET FORTH ON EXHIBIT A

Ladies and Gentlemen:

     Electric Fuel Corporation, a Delaware corporation (the "Company"), proposes
to sell (the "Offering") to the purchasers set forth on Exhibit A (the
"Purchasers") 1,425,000 shares (the "Shares") of its common stock, $.01 par
value per share (the "Common Stock") and warrants to purchase 1,425,000 shares
of Common Stock (the "Warrants", and together with the Shares, the
"Securities"), in the amounts and for the price set forth opposite each
Purchaser's name on Exhibit A. In connection with and in consideration for the
sale and purchase of the Securities, the Company and the Purchasers agree to
abide by the mutual covenants contained herein.

     1.   Sale and Purchase of the Securities.  On the basis of the
          -----------------------------------
representations, warranties and agreements contained in, and subject to the
terms and conditions of, this stock purchase agreement (the "Agreement"), the
Company agrees to sell to the Purchasers, and the Purchasers agree to purchase
from the Company, the Securities. The Purchasers will purchase the Shares at a
price of $2.00 per share. Of the Warrants, Warrants to purchase 950,000 shares
shall have an exercise price of $1.25 per share and shall expire on the date
which is six months after the Closing Date, and Warrants to purchase 475,000
shares shall have an exercise price of $4.50 per share and shall expire on the
first anniversary of the Closing Date. The Warrants shall be in the form
attached hereto.
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     2.   Delivery and Payment.
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     (a)  On the Closing Date, the Purchasers will pay to Yigal Arnon & Co., as
escrow agent (the "Escrow Agent"), for the benefit of the Company an aggregate
of U.S.$2,850,000 (the "Purchase Price") and the Company shall deliver the
Securities to the Escrow Agent for the benefit of the Purchasers.  Payment of
the Purchase Price shall be made by wire transfer in immediately available funds
in U.S. dollars or by delivery of a check for U.S. dollars to the Escrow Agent
in accordance with the wiring or delivery instructions provided below, provided,
                                                                       --------
however, that the Purchasers may, at their option wire or deliver New Israeli
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Shekels in lieu of U.S. dollars at the Bank HaPoalim U.S. dollar cash sell rate
(i.e. the rate at which the bank sells to buyers) as of the close of business on
December 27, 1999.  Notwithstanding the foregoing, the Purchasers agree that
$14,250 shall be paid to the Company in accordance with the wire transfer
instructions set forth on Annex I hereto. To the extent that monies are wired to
the Escrow Agent, they should be wired as follows: to account number 716383 in
the name of Yigal Arnon & Co. Trust Account, at Israel Discount Bank, Shlomzion
Hamalka Branch, branch number 11-063, and to the extent that payment is made via
check, delivery should be made to the attention of Barry Levenfeld, Adv. c/o
Yigal Arnon & Co., 22 Rivlin Street Jerusalem 91000, Israel.  The Closing of the
Offering shall take place at the offices of the Company, Western Industrial
Zone, Bet Shemesh, Israel  on December 28, 1999 or at such place and time on
such other date as shall be agreed upon by the Company and the Purchasers.  The
day on which the Closing takes place shall be referred to herein as the "Closing
Date."

     (b)  Pursuant to the terms of an Escrow Agreement to be entered into in
connection with the Closing in form and substance reasonably satisfactory to the
Company, the Purchasers and the Escrow Agent (the "Escrow Agreement"), the
Escrow Agent shall pay the Purchase Price to the Company and deliver the
Securities to the Purchasers upon receiving written notice from the Company to
the effect that the Securities and Exchange Commission has declared effective a
Form S-3 registration statement (the "Form S-3") filed by the Company to
register the resale of the Shares, the Warrants and the shares of Common Stock
issuable upon exercise of the Warrants (the "Effective Date") pursuant to the
terms of Section 8 below.  The Escrow Agent shall hold the Purchase Price and
the Securities in escrow until the Effective Date.

     (c)  Notwithstanding anything in this Agreement to the contrary, the
Parties agree that the amount of Securities to be sold under this Agreement may
be reduced if without such reduction the Offering would require approval of the
Company's stockholders. In the event such reduction is required, the amount of
Securities by which the size of the Offering shall be reduced shall be
apportioned pro rata among the Purchasers.

     3.   Offering of Common Stock. The Common Stock will be offered and sold to
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the Purchasers without being registered under the Securities Act of 1933, as
amended (the "Securities Act"), in reliance on the exemption therefrom provided
by Section 4(2) of the Securities Act.

     Immediately after the Closing, the Company shall file the Form S-3 in
accordance with Section 8 below. At the Closing, the Company will also amend the
voting rights agreement by and
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among the Company, Leon S. Gross, Robert S. Ehrlich and Yehuda Harats dated as
of September 30, 1996 so as to amend such agreement as of the Closing Date (the
"Amended Voting Rights Agreement"). Pursuant to the Amended Voting Rights
Agreement, the Purchasers shall be entitled to have one designated nominee
elected to the Board of Directors of the Company so long as the Purchasers hold
in the aggregate 950,000 shares of Common Stock. This Agreement, the Escrow
Agreement and the Amended Voting Rights Agreement are hereinafter referred to
collectively as the "Operative Documents."

     4.   Representations and Warranties of the Company.  The Company hereby
          ---------------------------------------------
represents and warrants to the Purchasers as follows:

               (a)  The Company has been duly incorporated and is validly
     existing as a corporation in good standing under the laws of the state of
     Delaware. The Company's wholly-owned Israeli subsidiary, Electric Fuel
     (E.F.L.) Limited ("EFL"), is duly incorporated and is validly existing as a
     corporation in good standing under the laws of the jurisdiction of its
     incorporation. Each of the Company and EFL is qualified and in good
     standing as a foreign corporation in each jurisdiction in which the
     character or location of its assets or properties (owned, leased or
     licensed) or the nature of its business makes such qualification necessary,
     except for such jurisdictions where the failure to so qualify, individually
     or in the aggregate, would not have a material adverse effect on the assets
     or properties, business, results of operations or financial condition,
     taken as a whole, of the Company and EFL.

               (b)  All necessary corporate action has been duly and validly
     taken to authorize the execution, delivery and performance of the Operative
     Documents by the Company. This Agreement has been duly and validly
     authorized, executed and delivered by the Company and constitutes the
     legal, valid and binding obligation of the Company enforceable against the
     Company in accordance with its terms, except as the enforceability thereof
     may be limited by bankruptcy, insolvency, reorganization, moratorium or
     other similar laws affecting the enforcement of creditors' rights generally
     and by general equitable principles. The Escrow Agreement and the Amended
     Voting Rights Agreement have been duly and validly authorized, and when
     executed and delivered, will constitute the legal, valid and binding
     obligations of the Company enforceable against the Company in accordance
     with its terms, except as the enforceability thereof may be limited by
     bankruptcy, insolvency, reorganization, moratorium or other similar laws
     affecting the enforcement of creditors' rights generally and by general
     equitable principles.

               (c)  Neither the execution, delivery and performance of the
     Operative Documents by the Company nor the consummation of any of the
     transactions contemplated hereby or thereby (including, without limitation,
     the issuance and sale by the Company of the Securities) will give rise to a
     right to terminate or accelerate the due date of any payment due under, or
     conflict with or result in the breach of any term or provision of, or
     constitute a default (or an event which with notice or lapse of time or
     both would constitute a default) under, or require any consent or waiver
     under, or result in the execution or
<PAGE>

     imposition of any material lien, charge or encumbrance upon any properties
     or assets of the Company pursuant to the terms of, any material indenture,
     mortgage, deed of trust or other agreement or instrument to which the
     Company is a party or by which the Company or any of its properties or
     businesses is bound, or any franchise, license, permit, judgment, decree,
     order, statute, rule or regulation applicable to the Company, or violate
     any provision of the charter or by-laws of the Company or EFL, except for
     such consents or waivers that have already been obtained and are in full
     force and effect, or, except for in connection with the Form S-3, require
     any consent, approval, authorization or other order of or registration or
     filing with, any court, regulatory body, administrative agency or other
     governmental body, agency or official, or such consents or waivers the
     failure to so obtain would not individually or in the aggregate, have a
     material adverse effect upon the assets or properties, business, results of
     operations or financial condition, taken as a whole, of the Company and
     EFL.

          (d)  The Company's Annual Report on Form 10-K for the fiscal year
     ended December 31, 1998, the Company's Form 10-Qs for the fiscal periods
     ended March 31, 1999, June 30, 1999 and September 30, 1999 and all
     documents filed with the Securities and Exchange Commission (the
     "Commission") pursuant to the Securities Exchange Act of 1934, as amended
     (the "Exchange Act") (such documents are hereinafter referred to as the
     "Exchange Act Documents") were filed in a timely manner and, when they were
     filed (or, if any amendment with respect to any such document was filed,
     when such amendment was filed), conformed in all material respects to the
     requirements of the Exchange Act, and the rules and regulations thereunder,
     and did not contain any untrue statement of a material fact or omit to
     state a material fact required to be stated therein or necessary to make
     the statements therein not misleading. Subsequent to the respective dates
     as of which information was given in the Exchange Act Documents, except as
     described therein, there has not been any material adverse change, and, to
     the Company's knowledge, no event has occurred which with notice or lapse
     of time or both, that would constitute such a material adverse change, in
     the assets or properties, business, results of operations or financial
     condition of the Company taken as a whole.

          (e)  There are no claims for brokerage commissions or finder's fees on
     similar compensation in connection with the transactions by this Agreement
     based on any arrangement or agreement made by or on behalf of the Company
     other than as previously disclosed to the Purchasers, and the Company
     agrees to indemnify and hold the Purchasers harmless against any damages
     incurred as a result of any such claims.

     5.   Representations and Warranties of the Purchasers.  Each Purchaser
          ------------------------------------------------
represents and warrants to Company that:

               (a)  Such Purchaser has full power and authority to execute,
     deliver and perform each of this Agreement, the Escrow Agreement and the
     Amended Voting Rights Agreement. This Agreement constitutes a valid and
     legally binding obligation of such Purchaser, enforceable against such
     Purchaser in accordance with its terms, except as the
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     enforceability thereof may be limited by bankruptcy, insolvency,
     reorganization, moratorium or other similar laws affecting the enforcement
     of creditors' rights generally and by general equitable principles.

          (b)  The Securities to be received by such Purchaser will be acquired
     for investment for such Purchaser's own account, and not with a view to the
     distribution of any part thereof. Such Purchaser has no present intention
     of selling, granting any participation in, or otherwise distributing the
     same. Such Purchaser does not have any contract, undertaking, agreement or
     arrangement with any person to sell, transfer, or grant participation to
     such person or to any third person, with respect to any of the Securities.

          (c)  Such Purchaser understands that the Securities may not be sold,
     transferred, or otherwise disposed of without registration under the
     Securities Act, or an exemption therefrom, and that in the absence of an
     effective registration statement covering the Securities or an available
     exemption from registration under the Securities Act, the Securities must
     be held indefinitely. In the absence of an effective registration statement
     covering the Securities, such Purchaser will sell, transfer, or otherwise
     dispose of the Securities only in a manner consistent with its
     representations and agreements set forth herein.

          (d)  Such Purchaser understands that until the Securities are
     registered under the Securities Act, the certificates evidencing the
     Securities may bear substantially the following legends:

                 (i)  "THE SECURITIES EVIDENCED HEREBY WERE ORIGINALLY
                      ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
                      UNDER SECTION 5 OF THE SECURITIES ACT OF 1933 (THE
                      "SECURITIES ACT") AND APPLICABLE STATE LAW, AND MAY
                      NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
                      THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
                      EXEMPTION THEREFROM (IN EACH CASE BASED UPON
                      DOCUMENTATION SATISFACTORY TO THE COMPANY,
                      INCLUDING AN OPINION OF COUNSEL SATISFACTORY TO IT
                      THAT REGISTRATION UNDER THE SECURITIES ACT AND ANY
                      APPLICABLE STATE LAWS IS NOT REQUIRED) OR PURSUANT
                      TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
                      SECURITIES ACT."

                 (ii) Any legend required by the Escrow Agreement, the
                      Amended Voting Agreement or any applicable law.
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          (e)  Such Purchaser is an "accredited investor" as such term is
     defined in Rule 501(a)(1) promulgated pursuant to the Securities Act.

          (f)  Such Purchaser's financial condition is such that he is able to
     bear the risk of holding the Securities for an indefinite period of time.

          (g)  Such Purchaser has such knowledge and experience in financial and
     business matters and in making high risk investments of this type that he
     is capable of evaluating the merits and risks of the purchase of the
     Securities.

          (h)  Such Purchaser has been furnished access to the business records
     of the Company and such additional information and documents as such
     Purchaser has requested and has been afforded an opportunity to ask
     questions of and receive answers from representatives of the Company
     concerning the business, operations, market potential, capitalization,
     financial condition and prospects, and all other matters deemed relevant by
     such Purchaser.

          (i)  There are no claims for brokerage commissions or finder's fees or
     similar compensation in connection with the transactions contemplated by
     this Agreement based on any arrangement or agreement made by or on behalf
     of such Purchaser, and such Purchaser agrees to indemnify and hold the
     Company harmless against any damages incurred as a result of any such
     claims.

          (j)  Such Purchaser acknowledges that the Company will rely upon the
     truth and accuracy of the foregoing acknowledgments, representations and
     agreements and agrees that, if any of the acknowledgments, representations
     and agreements are no longer accurate, he shall promptly notify the
     Company.

     6. Conditions of the Purchaser's Obligations. The obligation of the
        -----------------------------------------
Purchasers to purchase the Securities is subject to each of the following terms
and conditions:

          (a)  The representations and warranties of the Company contained in
     this Agreement shall be true and correct when made and on and as of the
     Closing Date as if made on such date and the Company shall have performed
     all covenants and agreements and satisfied all the conditions contained in
     this Agreement required to be performed or satisfied by it at or before the
     Closing Date.

          (b)  The Company shall have executed and delivered the Escrow
     Agreement and the Amended Voting Rights Agreement and delivered the
     Securities to the Escrow Agent.

     7. Conditions of the Company's Obligations. The obligation of the Company
        ---------------------------------------
to sell the Securities is subject to each of the following terms and conditions:


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          (a)  The representations and warranties of the Purchasers contained in
     this Agreement shall be true and correct when made and on and as of the
     Closing Date as if made on such date and the Purchasers shall have
     performed all covenants and agreements and satisfied all the conditions
     contained in this Agreement required to be performed or satisfied by it at
     or before the Closing Date.

          (b)  Receipt by the Escrow Agent of the Purchase Price from the
     Purchasers and receipt by the Company of $14,250.

          (c)  The Purchasers shall have executed and delivered the Escrow
     Agreement and the Amendment No. 1 to Voting Rights Agreement.

     8.  Registration Rights. Promptly following the Closing, the Company shall
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file and use its reasonable best efforts to have declared effective, the Form S-
3 registering for resale the Securities issued pursuant to this Agreement. The
Company shall use its reasonable efforts to maintain the effectiveness of the
Form S-3 until the date that is eighteen months after the Closing.

     9.  Covenant of the Company.  The Company covenants and agrees as follows:
         -----------------------

     The Company shall use its reasonable best efforts to do and perform all
things required or necessary to be done and performed under this Agreement by
the Company prior to the Closing Date, and to satisfy all conditions precedent
to the delivery of the Common Stock.

     10. Covenants of the Purchaser. The Purchasers covenant and agree as
         --------------------------
follows:

          (a)  The Purchasers shall use their reasonable best efforts to do and
     perform all things required or necessary to be done and performed under
     this Agreement by the Purchasers prior to the Closing Date, and to satisfy
     all conditions precedent to the delivery of the Securities.

          (b)  The Purchasers agree that from the date hereof until the fifth
     anniversary of the Closing Date, they will not, and will not permit any of
     his Affiliates, as defined in the Securities Act, to directly or indirectly
     or in conjunction with or through any Associate (as defined in Rule 12b-2
     of the Exchange Act), (i) solicit proxies with respect to any capital stock
     or other voting securities of the Company under any circumstances, or
     become a "participant" in any "election contest" relating to the election
     of directors of the Company (as such terms are used in Rule 14a-11 of
     Regulation 14A of the Exchange Act) or (ii) make an offer for the
     acquisition of substantially all of the assets or capital stock of the
     Company or induce or assist any other person to make such an offer or (iii)
     form or join any "group" within the meaning of Section 13(d)(3) of the
     Exchange Act with respect to any capital stock or other voting securities
     of the Company for the purpose of accomplishing the actions referred to in
     clauses (i) and (ii) above other than pursuant to the Amended Voting Rights
     Agreement.


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          (c)  The holders of a majority of the Securities may act on behalf of
     the Purchasers.

     11.  Miscellaneous.  This Agreement has been and is made for the benefit of
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the Purchasers and the Company, and their respective successors and assigns, and
no other person shall acquire or have any right under or by virtue of this
Agreement. The term "successors and assigns" shall not include any purchasers of
Securities from the Purchasers merely because of such purchase.

     All notices and communications hereunder shall be in writing and mailed or
delivered or by telephone or telegraph if subsequently confirmed in writing, (a)
if to the Purchasers to the address set forth on Exhibit A; and (b) if to the
Company, to Yehuda Harats, Electric Fuel Ltd., Western Industrial  Zone, P.O.
Box 641, Bet Shemesh 99000, Israel, with a copy to Jane D. Goldstein, Esq.,
Ropes & Gray, One International Place, Boston, MA  02110 and David S. Glatt,
Adv., Meitar, Liquornik, Geva & Co., 16 Abba Hillel Silver Road, Ramat Gan
52506, Israel.

     This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware, without regard to any conflicts or choice of law
principles which would cause the application of the internal laws of any
jurisdiction other than the State of Delaware.

     This Agreement may be signed in any number of counterparts, each of which
shall be an riginal, with the same effect as if the signatures thereto and
hereto were upon the same instrument.

           [THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]


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          Please confirm that the foregoing correctly sets forth the agreement
among us.

                                                    Very truly yours,

                                                    ELECTRIC FUEL CORPORATION


                                                    By /s/ Robert Ehrlich
                                                      -----------------------
                                                      Title: Chairman and CFO


Agreed and accepted:

THE PURCHASERS


/s/ Gal Erez
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/s/ Gadi Regev
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/s/ Federman Holdings
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/s/ Apax Mutavim
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/s/ Leader Holdings and Investments Ltd.
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/s/ Sunny
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/s/ Yosef Strogo
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/s/ Dvir Katchman
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/s/ Joe Nahumi
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/s/ Dalia Pkornik
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/s/ Shlomo Shefi
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/s/ Shuki Hershkovitch
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/s/ Uri Akerman
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/s/ Moshe Nehoray
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/s/ Volter Rozental
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/s/ Leon Gross
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