Right-wing investor Peter Thiel involved: US start-up opens cruise missile factory in Leipzig

It's a saying that actually comes from the anti-globalization movement: “Think globally, act locally”. Now a defense company has modified it in his spirit: “built locally, produced globally,” is how the US start-up Covenant advertises its Anthem cruise missile on its website. This weapon should be “locally assembled, globally produced”.

Starting next year, Covenant Anthem also wants to produce in Germany. The company opened a production facility in the north of Leipzig on Monday. In the first year, 1,000 of these cruise missiles will be produced there, and then 5,000 in 2028. Leipzig will be Covenant's largest location worldwide, promised the boss of the company founded in 2024, Michael Kauman. Additional production facilities are located in Texas and Israel.

The plant inauguration was also a reason to celebrate for Saxony's Prime Minister Michael Kretschmer. "Freedom, democracy and prosperity are not possible without security. And the best security is still deterrence. That's why it's good that we are active in this area," said the CDU politician. However, no new factory was built. Covenant rented a commercial hall in the north of Leipzig, which still has to be converted from a warehouse to a production hall. Just a formality, as they said.

According to media reports, the German-American tech billionaire Peter Thiel is involved in Covenant through the venture capital company Founders Found. And whether this is still part of the foundations of democracy is controversial. Back in 2009, he wrote in an essay: “I no longer believe that freedom and democracy are compatible.” Thiel, who was also involved in the founding of companies such as Paypal and Palantier, later became known for his support of US President Donald Trump and his deputy J. D. Vance.

Covenant is not the only defense company in which Thiel has a hand. He is also involved in the Berlin drone manufacturer Stark Defense. The company, founded in 2024, is one of the most valuable start-ups in Germany with a market value of over 3 billion euros. It was only in June that it was able to raise half a billion euros in fresh capital from investors. The reason for this is probably a 270 million euro order that Stark Defense received from the Bundeswehr in February. Defense Minister Boris Pistorius (SPD) had previously stated that he “explicitly” shared the concerns about Thiel.

Covenant is also likely to have the Bundeswehr in mind as a potential customer. The company has already published the first job advertisements for its Leipzig location. She wants one thing above all from her future quality managers: “Experience in supporting production programs in the defense sector that are subject to the quality requirements of NATO, the German Ministry of Defense or other military quality specifications.”

The company wants to score points for its cruise missile, which according to it can fly 1,000 kilometers and carry 200 kilograms of missiles, primarily through the price. While comparable weapon systems cost several million dollars, Covenant wants to offer its product for less than a million.

How the sector is expanding can also be seen in Kassel, where it was announced on Tuesday that tanks will probably be built there in the future instead of locomotives. The defense company Rheinmetall is taking over the factory of the French railway manufacturer Alstom.

Around 750 people work at the plant. A Rheinmetall spokesman said they had reached an agreement in principle. The goal is for Alstom employees to be able to find employment at Rheinmetall Landsysteme in the future. In employee circles, it is expected that Rheinmetall will expand wheeled tank production, which is already running in the immediate vicinity of the Alstom plant.