Defense Startup Covenant Unveils Low-Cost Cruise Missile for Mass Production

Defense startup Covenant on Wednesday unveiled Anthem, a heavy-payload, long-range cruise missile designed for mass production at a significantly lower cost than comparable systems from established contractors. The company, which has raised over $250 million from investors including Andreessen Horowitz and Founders Fund, aims to address the growing demand for plentiful, precision-strike weapons.

The Anthem Missile

Covenant's new weapon is a ground-launched cruise missile capable of carrying a payload of more than 200 kg (441 pounds). It is engineered to supplement existing high-end U.S. missiles, such as the Tomahawk from RTX's Raytheon unit and the JASSM-ER from Lockheed Martin.

"Comparable weapons from the biggest defense contractors are 'being built in small quantities at really high prices. And so we set out to change that,'" Michael Kaufman, Covenant’s co-founder and CEO, told Reuters. The company is targeting a mid-six-figure price per missile once at full production and reports it has flown the missile over 200 times in tests during the past year.

Strategic & Market Implications

The missile's development comes as the U.S. and its allies seek to replenish missile inventories that have been strained by conflicts, including the war in Iran, according to the report. Covenant executives stated the missile was designed with a potential conflict in the Pacific in mind.

Ad

"We were designed for the China fight," said Covenant President Abby Denburg. The strategy involves deploying ground-launched weapons from allied nations to hold targets at risk without deploying aircraft or naval strike groups. This entry of a well-funded startup presents a new challenge to the market dominance of legacy defense firms like RTX (RTX) and Lockheed Martin (LMT).

Production and Outlook

Founded in 2024, Covenant has already secured approximately $150 million in orders and anticipates generating revenue in 2027 as deliveries begin. An international customer is scheduled to receive German-built Anthems by the end of this year, with U.S. Army deliveries slated for 2027.

To ensure rapid scaling, Covenant has established a robust production base and supply chain. The company is opening a 105,000-square-foot plant in Dallas and operates a similar-sized facility in Germany, each with a target capacity of 5,000 missiles per year. A smaller site in Israel will produce 2,000 units annually. The company has also secured long-term agreements for over 4,000 jet engines and lined up multiple suppliers for key components to avoid production bottlenecks.