US-Israeli defense firm Covenant to produce long-range cruise missiles in Germany from 2027

According to reports, the range of the Anthem cruise missile is 1,500 kilometers. Source: Covenant / via REUTERS

The US-Israeli defense company Covenant intends to produce long-range cruise missiles in the Leipzig area starting in 2027. Approximately 1,000 Anthem systems are expected to be manufactured in the first year. Talks with the Bundeswehr (German Armed Forces) appear to already be underway.

Production Plans

The US-Israeli defense company Covenant plans to build long-range cruise missiles in Saxony starting next year. "In the first year, we will produce about 1,000 units and then ramp up to 5,000 units. That is our target for annual production," said Covenant CEO Abigail Denburg.

Production of the Anthem cruise missile is reportedly set to begin next year in the Leipzig area for European customers. The company also has a factory in Dallas, Texas, to supply the US armed forces.

Technical Specifications

• Warhead capacity: 200 kilograms
• Reported range: 1,500 kilometers (the company has not commented on this figure)
• Description: A weapon for precision strikes deep into enemy territory ("deep strike")

Pricing Strategy

The company aims to offer the weapons system significantly cheaper than currently available alternatives. Covenant explains that Anthem will cost a six-figure amount (less than one million US dollars per unit), whereas other weapons systems of this type typically cost several million US dollars per unit.

Strategic Rationale

Mass production has military significance and is intended to make customers sustainable. Covenant CEO Denburg stated: "Deterrence is an adversary's calculation, and this calculation changes when you possess extensive arsenals. If you can achieve a goal and attack once, it does not necessarily deter the adversary."

Talks with the Bundeswehr

According to information from the news agency dpa, Covenant is already in talks with the Bundeswehr and the procurement authority, although this has not been officially confirmed. Denburg stated—without making direct reference to Germany—that there is already a production contract for deliveries originating from Germany starting in the first quarter of 2027. "This European customer will decide themselves when they want to announce this," she said.

Company Background

• Founded: 2024
• Headquarters: Washington, D.C.
• Funding: More than 250 million US dollars (215 million euros) raised from investors in three funding rounds
• Key backer: Founders Fund, co-founded by Peter Thiel, known for his libertarian and right-wing conservative positions

Political Context

Defense Minister Boris Pistorius (SPD) had previously shared "explicit" concerns regarding Thiel. Public debate also focused on whether new dependencies would arise or whether the risk might be greater of facing a tension scenario without sufficiently filled ammunition depots.

Advisory Role

In Germany, the company states that Lieutenant General (ret.) Andreas Marlow serves as an advisor. Until 2025, he was Deputy Inspector of the Army and, from 2022 onwards, also led the EU training mission for the Ukrainian armed forces. A program for long-range cruise missiles produced in Europe is "the missing piece in our deterrence architecture," Marlow is quoted as saying.

Broader Context: An Alternative to the Tomahawk?

Germany and European NATO allies are currently striving to procure and develop long-range weapons systems in response to the Russian threat. At the NATO summit in Ankara, the German government agreed with the US on the purchase of US cruise missiles.