US-Israeli defense company to produce cruise missiles in Germany

US-Israeli defense company Covenant plans to begin producing long-range cruise missiles in the German state of Saxony next year, the company announced Wednesday.

Production of the Anthem cruise missile is expected to start near Leipzig in the first quarter of 2027, primarily serving European customers.

"In the first year, we will produce around 1,000 units and then ramp up to 5,000 units. That is our target for annual production," said Covenant President Abigail Denburg.

Denburg said a production contract had already been signed for deliveries from Germany but declined to identify the buyer.

"This European customer will decide for itself when it wants to announce this," she said.

Covenant said its German facility spans around 110,000 square feet (10,200 square meters) and will be supported by a European supply chain.

The company also opened a 105,000-square-foot factory in the US state of Texas to supply the American market and operates a smaller facility in northern Israel.

Designed for precision strikes against targets deep behind enemy lines, Anthem can carry a warhead weighing around 200 kilograms (441 pounds).

Although media reports have put its range at approximately 1,500 kilometers (932 miles), Covenant has not confirmed the figure.

The company said the missile would cost a six-figure amount, putting its unit price below $1 million and making it significantly cheaper than comparable long-range weapon systems.

Anthem has been flown more than 200 times since its maiden flight in August 2025, including multiple flight tests conducted with the US Army.

Most missile components are commercially available. Covenant has secured long-term agreements for other critical parts. The company said the production model was designed to enable rapid manufacturing in large quantities.

TALKS WITH GERMAN MILITARY

Covenant is also in talks with the German Armed Forces and the country's military procurement agency, although the discussions have not been officially confirmed, according to German news agency DPA.

Founded in 2024 and headquartered in Washington, DC, Covenant has raised more than $250 million through three funding rounds.

Its investors include Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, Aleph, and Lightspeed.

The company has also appointed retired German Lt. Gen. Andreas Marlow as an adviser in Germany. Marlow previously served as deputy chief of the German Army and led the EU military training mission for Ukrainian forces beginning in 2022.

Covenant said it has secured $150 million in orders, including qualification, research and development, and production contracts.

The company's expansion comes amid Israel's genocide in the Gaza Strip. Since Oct. 8, 2023, Israel has waged a genocidal war on Gaza that has killed more than 73,000 Palestinians and injured over 174,000, while 90% of the territory's infrastructure has been destroyed, according to Palestinian authorities.