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A defense company backed by American and Israeli investors plans to build a large-scale factory in eastern Germany to manufacture long-range cruise missiles, with unit costs expected to come in under $1 million, according to details released by the firm.
Covenant, the company behind the project, said it will construct the facility near Leipzig, in the state of Saxony, to produce its "Anthem" cruise missile.
The announcement comes as Germany and its European NATO allies accelerate efforts to secure advanced weapons systems in response to threats from Russia.
Covenant CEO Abigail Denburg said the company plans to manufacture approximately 1,000 Anthem missiles in the facility's first year of operation, with a long-term annual production goal of 5,000 units. Production is expected to begin in the first quarter of 2027, with output initially directed toward European customers.
Denburg said a production contract for deliveries from the German plant has already been signed, though she declined to name the buyer. "Our European customer will decide for itself when to announce this agreement," she said.
Covenant also operates a factory in Dallas, Texas, that serves the needs of the US military.
The Anthem missile is designed for precision strikes and can carry a 200-kilogram warhead. Its range has been reported at more than 1,500 kilometers, though the company has not officially confirmed that figure.
According to Germany's DPA news agency, Covenant intends to price the missile well below comparable systems on the market. While similar missiles currently cost several million dollars per unit, Anthem is expected to be produced for a six-figure sum, under $1 million each. The system has completed more than 200 tests, including trials with the US military, since its first flight in August 2025.
Covenant is holding direct talks with the Bundeswehr, Germany's armed forces, and its procurement agency, according to the report.
Founded in 2024 and headquartered in Washington, Covenant has raised more than $250 million from investors across three funding rounds.
Its backers include Founders Fund, the venture capital firm founded by Peter Thiel, a right-wing billionaire known for his criticism of liberal democracies and his ties to US President Donald Trump.
Retired Lieutenant General Andreas Marlow, who served as deputy commander of the German Army until 2025 and led the European Union's training mission for Ukraine's armed forces starting in 2022, is advising Covenant in Germany, the company said.
The Covenant announcement comes amid a broader push by Germany and its NATO allies to build up advanced weapons capabilities.
At a NATO summit held in Ankara, the German government reached an agreement with Washington to purchase American-made Tomahawk cruise missiles. In early September, the German Navy completed previously undisclosed tests of the Israeli-made Lora ballistic missile system.
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