Key facts
- U.S. defense company Covenant plans to produce intermediate-range missiles in Germany starting in 2027.
- The missiles will have a range of over 1,500 kilometers and a potential annual production of 1,000 units.
- Components will primarily be sourced from Germany and other European countries.
- Germany is seeking affordable, domestically and European-supplied cruise missiles.
- Covenant is a young startup backed by Silicon Valley investors, with operations in Israel and Germany.
U.S. defense firm Covenant intends to establish intermediate-range missile production near Leipzig, Germany, beginning in 2027, according to sources. The missiles are designed to have a range exceeding 1,500 kilometers, with a projected annual output of up to 1,000 units. A significant portion of the components for this production is expected to be sourced from Germany and other European nations.
This initiative aligns with Germany's strategic objective to acquire less expensive, European-sourced cruise missiles to supplement its existing, more costly long-range weapon systems and address a perceived capability gap. The urgency for such alternatives intensified after the United States decided against providing Germany with Tomahawk cruise missiles.
Covenant, a relatively young company founded in 2024 with backing from prominent Silicon Valley investors like Founders Fund and Andreessen Horowitz, has operated largely out of public view until recently. The company, which also has subsidiaries in Israel, is reportedly pitching a missile system named Anthem, with German defense officials invited to observe tests in Israel. Germany's defense ministry is exploring various avenues for deep-strike capabilities, including U.S. systems, lower-cost missiles from companies like Covenant, and longer-term European development projects.