U.S. defence startup Covenant announced plans to start mass production of its low-cost Anthem cruise missile in Germany in early 2027, targeting European demand for long-range weapons. The company intends to operate the manufacturing facility in the eastern German state of Saxony and expects initial deliveries of the ground-launched missile to begin in early 2027.
Covenant has confirmed it has secured one contract for the Anthem missile in Europe and is in discussions with additional potential buyers, but it declined to name the countries involved. The company set an ambitious production objective for the Saxony plant, with co-founder and CEO Michael Kaufman telling Reuters that Covenant aims to reach a run rate of 5,000 missiles by 2028 - or at least achieve that annualised output during 2028.
Production scale and industrial objectives
The planned manufacturing footprint is explicitly designed to support high-volume production, addressing a perceived shortfall in the number of long-range missiles currently held by several European nations. Covenant positions Anthem as a more affordable option than some existing long-range systems, stating a price per missile in the mid-six-figure range. The company argues that lower per-unit cost combined with mass production addresses both affordability and scale.
In addition to the ground-launched variant, Covenant said it is developing a naval version of Anthem. The missile carries a payload exceeding 200 kilogrammes, and is intended for striking targets both ashore and at sea. Covenant did not disclose a specific range for Anthem, but characterised it as well-suited for operations in the European theatre.
Supply chain and European sourcing
With growing interest in weapons that reduce dependency on U.S. components, Covenant emphasised that the supply chain for the Saxony facility is largely European. Kaufman said that less than 5% of the bill of materials for the Europe-built Anthem comes from outside Europe, and the company has set a goal of reducing that fraction to zero.
The emphasis on European sourcing is presented as a response to both political and operational preferences among some buyers seeking munitions with minimal reliance on U.S. parts.
Context on demand and competing production
Covenant and its executives have pointed to the need for a large inventory of long-range weapons to deter or sustain operations against a distant adversary with a large territory. Covenant’s President and Chief Growth Officer Abby Denburg told Reuters that the ability to deter or sustain conflict requires depth and an arsenal that can be sustained "for days, weeks, or months on end." Kaufman estimated that Germany and other European countries would need tens of thousands of long-range missiles to address such challenges.
The company described Anthem as a complement to existing inventories, which in some cases are limited and composed of costly missiles. The article notes that Germany’s current standoff weapon stock comprises around 600 Taurus cruise missiles. Separately, U.S. defence firm Raytheon - referenced by its corporate ticker RTX Corp - is planning to increase production of its Tomahawk missile substantially, from an annual rate of 60 to 90 missiles to a targeted 1,000 units per year.
Commercial positioning
Covenant pitches Anthem as a means to expand long-range inventories by offering a lower-cost, higher-volume alternative to pricier systems. The company has not disclosed all customer names or specific range metrics for Anthem, citing ongoing negotiations, but has confirmed at least one European sale to date and ongoing conversations with other potential buyers.