FT: U.S. and Germany to Mass-Produce Low-Cost Missiles to Replace Tomahawks

U.S. defense startup Covenant will mass-produce missiles at its factories in the United States, Germany, and Israel to counter threats from China, Russia, and Iran, the Financial Times (FT) reported on the 9th, local time.

Covenant, backed by tech billionaire Peter Thiel's Founders Fund, told the FT, "We are now officially launching what we have been quietly preparing for two years."

Covenant aims to produce 1,000 "Anthem" missiles each at its German and U.S. plants next year, and 5,000 annually at each of its three facilities in Germany, the U.S., and Israel starting in 2028.

The deep-strike missile Anthem, which they will produce, is expected to shake up the defense market.

Anthem was developed as a low-cost weapon to replace the U.S. Tomahawk cruise missile.

The Tomahawk, which has a range of up to 1,600 kilometers, costs about $4 million to $6 million (approx. 6.7 billion won) per unit.

However, Anthem costs in the "mid-hundreds of thousands of euros" (approx. 780 million won).

While Anthem's range remains undisclosed due to confidentiality agreements with clients, Michael Kaufman, co-founder and CEO of Covenant, told the FT that it was "designed to align with plans by Germany and the UK to jointly develop precision deep-strike weapons with a range of over 2,000 kilometers."

Its warhead weight is up to 250 kilograms, slightly more than half of the Tomahawk's 450 kilograms.

While Tomahawk stockpiles are currently depleted in the wake of the war in Iran, Anthem allows for mass production.

Covenant stated that it has received orders worth approximately 130 million euros (approx. 190 billion won).

"We are aiming for a dual approach of low cost and high productivity by using readily available parts," Kaufman said. "Our goal is to provide precision deep-strike solutions in large quantities to Europe, the United States, and allies."

Covenant has secured three sites in Dallas, U.S., Leipzig, Germany, and Israel, which are set to begin operations early next year.

U.S. defense contractor Raytheon has produced 60 Tomahawks annually, but recently signed a $23 billion contract with the U.S. government to produce 1,000 per year.

CEO Kaufman, 36, holds dual U.S. and Israeli citizenship.

He founded the company in 2024 alongside Opry Dayan, who previously worked as a senior engineer on the Iron Dome air defense system at Israel's Rafael.

Asked whether Anthem should be classified as a cruise missile or a long-range drone, President Abby Denburg replied, "We define it as a 'precision deep-strike guided munition.'"

The FT reported, "Covenant's investors include Peter Thiel's Founders Fund—which has close ties to President Donald Trump—as well as Andreessen Horowitz and venture capital firm 8VC, which also have strong connections to Trump. It has also received investment from Israeli venture capital firm Alfredo, whose co-founder serves as an advisor to Israeli Prime Minister Benjamin Netanyahu regarding the Gaza Strip and the United States."

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.