Defense Startup Covenant Opens German Cruise Missile Factory to Supply NATO Allies

U.S.-Israeli defense technology startup Covenant announced on Wednesday the opening of a factory in Saxony, Germany, to mass-produce its Anthem cruise missile. The move addresses growing demand from NATO allies seeking to replenish their stockpiles of precision-strike weapons.

European Production Hub

The new 110,000-square-foot facility is strategically located near Leipzig airport, a key military logistics hub in Europe. According to a Bloomberg report citing people familiar with the matter, the plant is expected to deliver its first missiles to at least two European customers in the first quarter of 2027.

Covenant stated that its ground-launched Anthem missile is capable of carrying a warhead weighing more than 200 kilograms. The German factory is part of a broader global footprint that also includes facilities in the United States and Israel.

Venture Backing and U.S. Operations

The factory opening coincided with Covenant's official launch out of stealth mode. The company disclosed it has raised over $250 million in funding across three rounds from prominent venture capital firms including Andreessen Horowitz, Founders Fund, Lux Capital, and Lightspeed Venture Partners.

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In addition to the German site, Covenant operates:

• A 105,000-square-foot factory in Grand Prairie, Texas, which is also set to begin serial production in Q1 2027 with a target of ramping up to 5,000 units per year.
• A 32,000-square-foot facility in Northern Israel.

Existing Contracts and Market Traction

Covenant reported it has already secured approximately $150 million in orders, spanning research and development, qualification, and multiple production contracts. The company has established relationships with the U.S. military, operating under an Other Transaction Agreement (OTA) with the U.S. Army for an accelerated testing program.

Furthermore, Covenant holds a contract with the U.S. Navy’s Rapid Capabilities Office valued at roughly $70 million. This contract is for adapting the ground-launched Anthem into a maritime variant. The company noted the missile has been flown over 200 times since its first flight in August 2025, including in tests with the U.S. Army.