US defence start-up Covenant, backed by Peter Thiel's Founders Fund and a venture capital firm linked to an adviser to Israeli Prime Minister Benjamin Netanyahu, has emerged from stealth mode to announce plans for mass-producing its Anthem "deep strike" missile. The company, co-founded by CEO Michael Kaufman and Ofir Dayan, a former Iron Dome system chief engineer at Rafael Advanced Defense Systems, aims to disrupt the western defence market with a cheaper alternative to the Tomahawk cruise missile.

Covenant has secured factory sites in Dallas, Leipzig, and Israel, with production slated to begin early next year. The company targets output of 1,000 missiles annually per site in 2027, scaling to 5,000 by 2028. Each Anthem unit is priced in the "mid six-figure" euros, a fraction of the $4mn-$6mn cost of Raytheon-made Tomahawks, which face production bottlenecks exacerbated by the war in Iran.

The launch comes as the US and European allies seek to replenish depleted long-range arsenals and develop sovereign strike capabilities against threats from Russia, China, and Iran. Kaufman, a former Thiel Capital employee, cites inspiration from rapid drone innovation in Ukraine but sought a "war-winning" strategic munition. Competitors include Anduril, Destinus, and Ukrainian maker Fire Point. Covenant declined to disclose Anthem's range but referenced a German-British plan for 2,000km+ weapons.