Germany Considers Unconventional Startup Covenant for New Cruise Missile

Germany is exploring a partnership with an unconventional startup, Covenant, to address its urgent need for long-range strike capabilities. The German military has initiated talks with the U.S.-Israeli venture capital-backed company over its Anthem cruise missile system. This development comes as Berlin grapples with significant gaps in its arsenal of long-range weapons designed to deter Russian aggression.

The Anthem cruise missile is being positioned as a potential solution to fill the void left by delayed deliveries and uncertain availability of other systems such as the Taurus and Tomahawk missiles. The German defense ministry revealed that negotiations are ongoing but declined to provide further details on how the weapon would integrate into Bundeswehr's strategic plans.

Covenant, founded in 2024, has been operating under a veil of secrecy until recently. The company claims its missile is production-ready and undergoes weekly flight tests. Anthem's cost structure is notably lower than that of existing systems, with a target price per unit set at six figures during serial production—significantly less expensive than current-generation Taurus missiles which can cost over $1 million each.

The startup has chosen Leipzig, Germany, as the site for its first European facility, aiming to commence serial production in early 2027. This decision is particularly noteworthy given the political climate in eastern Germany, where far-right parties have gained traction. The Alternative for Germany (AfD) party, which won majorities in local elections and advocates for a strong military but with reservations about aligning against Russia, has expressed mixed sentiments regarding arms production.

Ulrich Siegmund, who led AfD to victory in Saxony-Anhalt, stated that while his party does not categorically oppose the production of military equipment, it emphasizes the importance of such capabilities being aligned with their vision for remigration and deportation campaigns. This stance reflects a complex interplay between national defense needs and regional political dynamics.

Covenant's Leipzig facility is set to operate under regulations as a metalworking plant rather than a munitions factory, due to not handling explosives on-site. However, the company remains tight-lipped about where propellant and warhead integration will occur for European-produced units, raising questions about compliance with international arms control agreements and oversight mechanisms.

The decision by Germany to consider Covenant's Anthem missile underscores the evolving landscape of defense procurement, particularly in light of geopolitical tensions and technological advancements from non-traditional vendors. As negotiations progress, this collaboration could reshape not only Germany’s military capabilities but also influence broader European security dynamics.