US defense company Covenant plans to produce cruise missiles in Saxony

The US defense company Covenant wants to start producing long-range missiles in Saxony in the first quarter of 2027. The company announced this. According to the company, the cruise missile “Anthem” will combine a high payload with a long range and be designed for strategic precision strikes. It can carry a 200 kilogram warhead.

It should also be cheaper than previous alternatives. Covenant explains that Anthem will cost six figures, less than a million, while other weapon systems of this type typically cost several million dollars each. Since its first flight in August 2025, the system has already completed over 200 tests, including test missions with the US military. According to MDR information, the arms factory is to be located in the Leipzig area.

Anthem’s exact reach is still unclear

The exact range of the cruise missile was not disclosed. According to the Reuters news agency, they should have a range of more than 1,500 kilometers. The Air Force's only longer-range cruise missile to date, the Taurus KEPD 350, has a range of around 500 kilometers.

Former Bundeswehr Lieutenant General and Covenant advisor Andreas Marlow said, according to the statement, that while the Bundeswehr has historically focused on tactical flexibility, collective defense today requires real strategic reach. According to Marlow, a European-produced long-range missile program is "the missing piece of the puzzle in our deterrence architecture."

The company's largest armaments location in Saxony

According to the company, the site in Saxony is to be expanded into Covenant's largest production site worldwide and will play an important role in supplying European armed forces in the future. All company areas are to be located in Saxony, from administration and development to production. “There will be a variety of well-paid, exciting jobs,” says Covenant boss Abigail Denburg.

"In the first year we will produce around 1,000 pieces and then ramp up to 5,000 pieces. That is our goal for annual production," says Denburg. Covenant has rented a plot of land measuring around one hectare for this purpose.

Why Saxony?

According to Covenant, it consciously chose Saxony as its first German production location. In addition to the support from Saxony's economic development agency, the decisive factors were the high quality of life, good accessibility and the industrial conditions of the Free State. The company relies on Germany's expertise from the automotive industry to efficiently mass-produce complex technical systems and electronics. The company also wants to expand its cooperation with German suppliers and make long-term investments in the region.

In addition to production in Saxony, another production facility is being built in Dallas, Texas. According to the company, “Anthem” will only be available to states in Europe, the USA and other Western partner countries for deterrence and defense.

Peter Thiel is a financial backer of Covenant

According to the company's own information, more than $250 million in capital has already been raised. Among the donors is the Founders Found, of which Peter Thiel is one of the co-founders. He is known for his libertarian and right-wing conservative positions, his closeness to US President Donald Trump and his criticism of liberal democracies.