German defense ministry confirms talks with startup Covenant over Anthem cruise missile
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The German military is in negotiations with Covenant, a U.S.-Israeli venture capital-backed startup, regarding its Anthem cruise missile, the German defense ministry confirmed on Friday. The weapon is intended to address a critical gap in Berlin's long-range strike capabilities, which are currently strained due to delays in a new Taurus missile variant, uncertain U.S. Tomahawk deliveries following heavy use in the American-Israeli war against Iran, and the early stages of the pan-European ELSA development effort. A German Defense Ministry spokesperson declined to provide details on the talks or how the Anthem would fit into Bundeswehr planning. Covenant claims the Anthem is production-ready with weekly flight tests, and targets a mid-six-figure unit price during serial production, significantly cheaper than the $1 million-plus Taurus. The company, founded in 2024 and operating in stealth mode until this week, plans to begin serial production in Germany at a facility near Leipzig in Q1 2027, with global customers receiving missiles as early as 2026. The Leipzig facility will reportedly not handle explosives, operating under metalworking regulations. The announcement comes at a politically sensitive time in east Germany, where the far-right, Russia-friendly Alternative for Germany party has gained electoral strength.
Source report
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, which is 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. To date, Germany has 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 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 previously 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."
Company Background
Covenant was founded in 2024 and operated in "stealth mode" for two years until this week's announcement. The company employs 200 people, according to Reuters, and was recruiting for 29 positions at the time of writing, seven of them in Germany.
The company's main facility is located in Grand Prairie, Texas. A third plant is in Israel.
German Production Facility
In local media, the German facility has been identified as being located in an industrial neighborhood on the north side of Leipzig, Saxony, near the major Leipzig-Halle Airport. Asked for specifics, the company declined to provide further information, stating only that it is leasing an existing building.
Serial production in Germany is set to begin at the start of 2027, according to a Berlin lobbying firm handling local media inquiries on behalf of Covenant. A spokesman there told Defense News in an email 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.
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. Asked by Defense News, the company declined to provide further details about where propellant and warhead integration would take place for European-produced units, or whether this would be done within Germany or elsewhere.
Covenant also declined to indicate who potential European buyers might be.
Political Context
The announcement of the Leipzig-area facility comes at a politically sensitive time in east Germany. The far-right Alternative for Germany (AfD) party has won majorities in local elections, most recently in the neighboring state of Saxony-Anhalt last weekend. The party, which maintains close ties with Russia and opposes support for Ukraine, is also the strongest political force in Saxony itself, where the Covenant facility is to be located.
Source
Defense NewsWestern
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US-Israeli firm Covenant to build Anthem cruise missiles in Saxony, Germany from 2027