German Defense Ministry confirms talks with startup Covenant over Anthem cruise missile

VIENNA — The German military is in discussions with Covenant, a U.S.-Israeli venture capital-backed startup, regarding its Anthem cruise missile, the country's defense ministry confirmed on Friday.

The weapon could help Berlin quickly close a gap in its long-range strike arsenal, intended to deter Russian aggression. Germany's current long-range weapons portfolio faces several challenges:

• A new version of the air-launched Taurus cruise missile is years away from fielding
• Planned U.S. deliveries of Tomahawk cruise missiles are uncertain following heavy use in the American-Israeli war against Iran
• A pan-European development effort, dubbed ELSA, is still in its early stages

A German Defense Ministry spokesperson declined to provide additional details about the state of negotiations with Covenant, beyond confirming they are ongoing, or about how the Anthem would fit into Bundeswehr planning.

Ground-Launched Capabilities

Germany has so far prioritized Lockheed Martin-made Typhon launchers for its envisioned ground-based strike ecosystem. These launchers can fire a variety of munitions at varying ranges, including Tomahawks, which have a range of more than 1,500 kilometers.

The Anthem missile is also reportedly ground-launched, though the company did not respond in time for publication with details about its launch system.

Production and Pricing

Covenant claims the Anthem weapon is production-ready, with flight tests taking place weekly. The company's pitch centers on producing missiles more cheaply than current standard systems. Reuters has reported a mid-six-figure target price per unit set by company executives during serial production. By comparison, a current-generation Taurus missile costs $1 million or more.

According to the company's website: "Anthem is built on local production lines so allied governments buy directly from an industrial base they can rely on."

Facilities and Timeline

Covenant was founded in 2024 and operated in "stealth mode" for two years until this week's announcement. The company employs 200 people and was recruiting for 29 positions, seven of them in Germany, at the time of writing.

The company's facilities include:

• Main facility: Grand Prairie, Texas
• German facility: An industrial neighborhood on the north side of Leipzig, near Leipzig-Halle Airport (the company is leasing an existing building)
• Third plant: Israel

Serial production in Germany is set to begin at the start of 2027, according to a Berlin lobbying firm handling local media inquiries for Covenant. A spokesman stated that "global customers" would receive Anthems "as early as 2026, but German-built Anthems will begin in Q1 2027."

Reuters had previously reported German production for an unnamed non-American recipient starting by the end of the year, citing company executives.

Regulatory and Political Context

German online publication Tag24 has reported that the Leipzig facility will not handle explosives, allowing it to operate under regulations as a metalworking plant rather than a munitions factory. Covenant declined to provide further details about where propellant and warhead integration would take place for European-produced units, or whether this would occur within Germany or elsewhere.

The company also declined to indicate who potential European buyers might be.

The announcement of the Leipzig-area facility comes at a politically sensitive time in east Germany. The far-right Alternative for Germany party, which is close with Russia and opposes support for Ukraine, recently won majorities in local elections, including in the neighboring state of Saxony-Anhalt last weekend. The party is also the strongest political force in Saxony itself, where the Covenant facility is located.