New US Weapons Giant Opens, Capable of Producing 5,000 Missiles Per Year
A new wave of defence technology giants is making its mark in the United States. The startup Covenant has officially established its presence by inaugurating a 105,000-square-foot manufacturing facility in Dallas, Texas. This expansive move is being accelerated to boost the mass production of low-cost cruise missiles for US military requirements.
Alongside the launch of the factory, Covenant, which has recently emerged from stealth mode, announced a significant achievement in the form of US$250 million (IDR 4.3 trillion) in fresh funding across three funding rounds. The company is backed by some of the world’s most influential venture capital firms, including Andreessen Horowitz, Peter Thiel’s Founders Fund, Lux, 8VC, Aleph, Lightspeed, and Altimeter Capital.
“What we are seeing now is the awareness that new players in the market can play a crucial role in the defence ecosystem, and that is what we are witnessing under the current administration,” said Abby Denburg, President and Chief Growth Officer of Covenant, to Morgan Brennan of CNBC International.
Founded in 2024, Covenant has drawn attention through its flagship product, a heavy-payload long-range cruise missile named Anthem. This advanced weapon serves as a strategic alternative in a weapons class traditionally dominated by major defence contractors, such as the Tomahawk missile produced by RTX. Notably, Covenant claims the price tag for the Anthem is significantly cheaper than existing legacy weapons systems.
Production of 5,000 Long-Range Missiles Per Year
The new factory in Dallas is projected to produce 1,000 units of the Anthem long-range missile in its first year. Mass production is scheduled to begin in the first quarter of 2027, with a target capacity that will be ramped up to 5,000 units per year.
This massive production capacity addresses an urgent need. Amidst the ongoing conflict in Iran, which has entered its seventh month, US military weapon reserves are reported to be depleting rapidly. Denburg noted that while short-range drones with light payloads dominate modern battlefields, such as the Russia-Ukraine conflict, there remains an unserved niche for affordable, large-scale strategic weapons. This is the gap that Anthem aims to fill without compromising payload capacity.
Covenant’s expansion has been further solidified after the US Department of Defense (DoD) officially signed two cooperation contracts last Wednesday. The first contract is intended to accelerate a joint testing programme with the Army, while the second involves the Navy to adapt the Anthem for maritime operational needs. Currently, Covenant employs over 200 global staff, with production facilities spread across Germany and Northern Israel.
The Proximity of Silicon Valley and the White House
The rapid growth of this Washington-based startup also reflects the strong influence of the defence tech sector in reshaping US defence procurement policies and supply chains. The influence of Peter Thiel, co-founder of PayPal and Palantir, is rising in Washington alongside Donald Trump’s return to the White House. Thiel was a staunch supporter of Trump’s 2016 campaign and a driving force behind the political career of JD Vance.
On the other hand, Marc Andreessen, an elite venture capital figure whose prominence has surged during the second Trump administration, was recently appointed to the Pentagon’s Defence Policy Board this summer, alongside Blake Masters from Thiel Capital. This year, Andreessen also demonstrated his commitment to the defence sector by deploying billions of dollars dedicated entirely to the US aerospace and military ecosystem.