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US defence firm Covenant plans missile production in Germany, sources say

Published by Global Banking & Finance Review

Posted on August 28, 2026

2 min read

· Last updated: August 28, 2026

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Covenant Plans Intermediate-Range Missile Production in Germany by 2027

U.S. Defence Company Covenant's Missile Production Initiative

By Markus Wacket

Production Details and Capacity

BERLIN, Aug 28 (Reuters) - U.S. defence company Covenant plans to begin producing intermediate-range missiles near Leipzig from 2027, sources told Reuters on Friday, as Germany searches for affordable cruise missiles that can be deployed in large numbers.

Missile Range and Output

The missiles would have a range of more than 1,500 kilometres and production capacity could reach up to 1,000 units a year, the sources said.

Component Sourcing

While Covenant is a U.S. company, most components for the planned production are expected to be sourced from Germany and other European countries, they added.

Official Responses

Covenant and Germany's defence ministry declined to comment.

Strategic Context and Alternatives

The project comes as Berlin looks for less costly, domestically and European-supplied options to complement more expensive long-range weapons systems and close what officials see as a capability gap.

Urgency for Alternatives

The search for alternatives had gained urgency after the United States, despite earlier announcements, no longer plans to provide Germany with Tomahawk cruise missiles, the sources said, triggering a search for alternatives.

(Reporting by Markus Wacket, writing by Maria Martinez, Editing by Louise Heavens)

Key Takeaways

  • Covenant, a U.S.–Israeli‑linked defence startup founded in 2024, plans to establish missile production in Germany from 2027 with mostly European components, signalling a push for sovereign strike capability (calcalistech.com)
  • The project addresses Germany’s urgent need for affordable intermediate-range cruise missiles (1,500 km+), especially after U.S. delays and ambiguity around Tomahawk deployments (zdfheute.de)
  • Parallel efforts include Germany’s agreement to buy Tomahawks—and a joint ATACMS co‑production venture with Lockheed Martin and Rheinmetall—to rapidly fill the capability gap while Europe develops its own systems (onvista.de)

References

Frequently Asked Questions

When is Covenant planning to start missile production in Germany?
Covenant aims to begin producing intermediate-range missiles near Leipzig from 2027.
What is the expected annual production capacity for Covenant's missiles in Germany?
Production capacity could reach up to 1,000 missile units per year.
Why is Germany seeking new cruise missile production?
Germany seeks affordable and domestically-supplied cruise missiles after the US decided not to provide Tomahawk missiles, creating a capability gap.
Will the missiles be entirely US-made?
Most components are expected to be sourced from Germany and other European countries, even though Covenant is a US company.
What is the planned range for Covenant's missiles?
The intermediate-range missiles are expected to have a range of more than 1,500 kilometers.

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