Covenant has opened a 105,000-square-foot factory in Dallas to enhance missile production for the U.S. military, marking its emergence from stealth mode and securing $250 million in funding from notable investors including Andreessen Horowitz and Peter Thiel's Founders Fund.
The company aims to manufacture its Anthem long-range heavy-payload cruise missiles, which are designed to be significantly cheaper than existing options like RTX's Tomahawk.
With plans to produce 1,000 missiles in the first year and scale up to 5,000 annually by 2027, Covenant's initiative comes at a critical time as the U.S. military faces dwindling stockpiles amid ongoing conflicts, particularly in Iran.
Abby Denburg, Covenant's president, emphasized the need for affordable yet effective weapon systems, especially as the landscape of warfare evolves with the rise of drones. Additionally, Covenant has secured two Department of Defense contracts to expedite testing and adapt its missiles for maritime use.
This development underscores the increasing influence of new entrants in the defense sector and the changing dynamics of military procurement, particularly as established defense contractors face competition from innovative startups