U.S. defence startup Covenant disclosed that it will start mass production of its low‑cost Anthem cruise missile at a new plant in the eastern German state of Saxony in early 2027. The company, which already secured one European contract for the missile, is in talks with additional customers across the continent but declined to name the nations involved.
Production goals and European supply chain
CEO and co‑founder Michael Kaufman told Reuters the firm aims to reach a run rate of 5,000 missiles in 2028. “Our aim is to reach 5,000 by 2028, or at least a run rate of 5,000 during 2028,” he said, emphasizing the scale of the planned operation.
Unlike many U.S.‑origin weapons, Covenant says the Saxony facility will rely almost entirely on European components. “The supply chain for the Saxony facility has no reliance on the U.S. … Less than 5 % of the bill of materials comes from anywhere outside of Europe, and our goal is to get that down to zero,” Kaufman explained.
Cost‑competitive alternative to existing missiles
The Anthem missile is positioned as a more affordable option compared with established systems such as Raytheon’s Tomahawk. Covenant estimates the price per missile falls in the “mid‑six figures,” offering European militaries a cheaper way to expand long‑range strike capabilities.
Raytheon, the U.S. defence giant, is planning to increase Tomahawk production to about 1,000 units per year, up from a current rate of 60‑90 per year. Covenant’s entry could provide European customers with a domestically sourced alternative that reduces dependence on U.S.‑made weapons.
Potential impact on European defence posture
Germany and the United Kingdom are jointly developing a long‑range missile capable of reaching Moscow, reflecting a broader European desire to lessen reliance on U.S. arms. Germany’s only current standoff weapon, the Taurus cruise missile, numbers roughly 600 in stock.
Abby Denburg, Covenant’s President and Chief Growth Officer, said the ability to field a deep, sustained missile arsenal is essential for deterrence. “The way to win a war or deter your adversaries is to have the depth and arsenal to sustain that conflict for days, weeks, or months on end,” she told Reuters.
Future variants and market outlook
Covenant is also developing a naval version of the Anthem missile, which can carry a payload exceeding 200 kilograms for both land and sea targets. While the company has not disclosed the exact range of the missile, it describes the system as well‑suited for the European theatre.
Kaufman estimates that Germany and other European nations could require tens of thousands of long‑range missiles to counter a distant adversary with a large territory, underscoring the market potential for Covenant’s European‑built solution.
Implications for U.S. defence industry
The move highlights a shift in European defence procurement toward domestically produced systems, a trend that could reshape the competitive landscape for U.S. defence contractors. By offering a lower‑cost, Europe‑sourced alternative, Covenant aims to capture a segment of the market that is increasingly wary of reliance on U.S. components.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
