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EconomicGermany·30 Aug 2026 · 3h ago

US defence firm plans medium-range missile production near Leipzig

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US-based defense firm Covenant announced plans to establish production facilities for medium-range missiles near Leipzig, Germany, beginning in 2027 with a potential output of 1,000 units annually. The missiles, which are reported to have a range exceeding 1,500 kilometers, are estimated to cost a few hundred thousand dollars each, significantly less than the Tomahawk cruise missile. This development follows requests for proposals sent by the German Ministry of Defence as the nation seeks to bolster its deep strike capabilities. Covenant, a firm founded in 2024 and backed by investors including Michael Kaufman and Andreessen Horowitz, intends to utilize supply chains within Europe for the project.

Consequences

If the project proceeds, Germany may reduce its dependency on US-manufactured weapons by sourcing missile components from European supply chains. The availability of a lower-cost, domestically produced cruise missile could facilitate a rapid expansion of Germany's long-range strike capacity.

Sources

Euronews
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