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US defence contractor Covenant plans to start producing medium-range missiles near Leipzig from 2027, according to sources, with up to 1,000 missiles a year thought to be possible.
The plans could bring a previously little-known cruise missile into greater focus in Germany. But what is actually known about the new weapon?
A reported range of more than 1,500 kilometres
The missiles are expected to have a range of more than 1,500 kilometres, Reuters reported, citing people familiar with the matter.
So far, however, few other technical details are known.
According to sources, the missiles are set to cost a few hundred thousand US dollars each, making them significantly cheaper than Tomahawks, which cost around $2 million per missile, depending on the version.
Covenant is also developing a cruise missile called “Anthem,” which is seen as the company’s flagship project. However, it has not yet been confirmed whether this is the system that is to be produced near Leipzig.
Germany looking to build deep strike capability
Covenant’s plans come as Germany addresses a growing need for long-range missiles that are relatively inexpensive and that can be produced in large numbers.
According to reports, Germany’s Ministry of Defence has already sent requests for proposals to Covenant as part of plans to build up its deep strike capability.
The company is said to be planning to establish supply chains and production lines in Europe.
Although Covenant is a US company, most of the components are expected to come from Germany and other European countries. For Germany, this could mean less reliance on weapons deliveries from the US.
Who is behind Covenant?
Covenant is a relatively new player in the arms industry. The company was founded in 2024 and is also active in Israel.
The firm is backed by US investor Michael Kaufman, who previously worked for the investment firm Thiel Capital. Its backers are also said to include prominent US technology investors such as Andreessen Horowitz and the Founders Fund.
It remains unclear whether Berlin actually intends to procure Covenant’s missiles and how far any talks with the company have progressed.