Germany is lining up thousands of deep-strike weapons from several European manufacturers to bulk up its arsenal, betting that volume can swamp enemy air defenses and allow strikes to land. Today the Bundeswehr relies on a single system for this mission - the air-launched Taurus cruise missile with an approximate 500 kilometer range - made by MBDA Missile Systems Services SAS and Saab AB.
Berlin also wants the BGM-109 Tomahawk and the Typhon ground-launch system from Raytheon, but that plan is now running up to five years late. The European buys are intended to fill the gap sooner.
People familiar with the talks say the defense ministry is pursuing a procurement agreement worth more than €1 billion, or $1.12 billion, with Covenant to secure thousands of its heavy-payload, ground-launched Anthem cruise missiles. Covenant set up a plant this year in Leipzig in the state of Saxony, and expects the first cruise missiles to leave that line in early 2027.
The company targets output of 1,000 missiles at the site by the end of next year, supported by a sovereign European supply base, and aims to reach an annual run rate of 5,000 by 2028. Covenant would not share performance details, but people familiar with development say Anthem's range exceeds 2,000 kilometers.
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Berlin is also discussing a co-production and purchase arrangement with Ukraine for the Bars cruise missile, though its manufacturer has not been disclosed. Other possible winners include Destinus SA of the Netherlands with its Ruta cruise missiles and German-British startup Hypersonica, which is developing the ultra fast HS1.
Denmark added momentum on Thursday, announcing it will acquire long-range precision missiles for deployment from fighter jets as well as from ground-based launchers. Defense Minister Jeppe Bruus said Copenhagen will buy Kongsberg Gruppen's Joint Strike Missile for its F-35s, as well as Covenant's Anthem.
For investors, this is a multi-year European rearmament story that directs capital into missile programs, factories and supply chains. Germany's push for thousands of lower-cost rounds, plus Denmark's orders, points to sustained demand across cruise missiles, ground-launch systems and supporting components through 2028. The bottom line: watch for contract flow to Covenant and its peers, progress on Leipzig's ramp, and any movement on Germany's delayed Tomahawk and Typhon plan.
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