Israel pushes munitions independence with focus on Covenant’s low-cost Anthem missile

Israel is stepping up efforts to expand domestic arms production and reduce its reliance on foreign suppliers as it seeks to replenish munitions stockpiles, strengthen its defense industry and prepare for future security challenges.

On Thursday, Israeli Defense Ministry Director-General Maj.-Gen. (res.) Amir Baram visited Covenant, a rapidly growing defense technology company, to discuss expanding the country’s domestic production capabilities and maintaining its technological advantage.

According to a statement from the Defense Ministry, the visit “focused on strengthening Israel's munitions independence, expanding the production base, and preserving the State of Israel's qualitative and technological edge in the years ahead.”

Founded in 2024 by Michael Kaufman and Ofir Dayan, Covenant already operates in Israel, the United States and Germany.

"The ministry's policy is to encourage and strengthen both defense-tech companies and new start-ups, as well as the established industries. This balance is essential for fostering healthy competition, driving innovation and out-of-the-box thinking, maintaining our qualitative edge, and developing 'the next surprises,’” Baram was quoted as saying during the visit to the defense startup.

Baram also emphasized the need to prepare for future security challenges while expanding Israel’s defense exports.

“We must look ahead to an intense security decade and adapt our plans to both global changes and the evolution of the battlefield. Defense exports are a critical growth engine and an enabling tool, not only for strengthening the economy, but also for building the IDF's force and delivering a critical mass of advanced systems to the warfighters on the front lines," Baram explained.

Israel’s efforts to strengthen its domestic arms industry have gained urgency amid growing international calls to restrict arms sales to the country since the Hamas-led Oct. 7, 2023, massacre and the subsequent war in Gaza.

Israel has consequently made reducing its reliance on military imports, particularly from the United States, a strategic priority.

Last year, the Israeli government launched a state-backed investment initiative to support early-stage defense technology companies. The Defense Ministry has since invested 1.2 billion shekels (nearly $400 million) in small and medium-sized companies, while Israeli authorities have also signed multimillion-dollar contracts with domestic defense manufacturers.

In 2025, the Defense Ministry declared “munition independence” as part of efforts to reduce reliance on imported ammunition and other military supplies. The extensive use of munitions by Israeli forces in Gaza and Lebanon made replenishing the country’s stockpiles a strategic priority.

Covenant’s flagship missile system, known as Anthem, is designed to carry heavy payloads over long distances while remaining inexpensive enough for mass production. The company has disclosed limited details about the system’s capabilities.

However, a report on the Missile Matters blog by military expert Fabian Hoffmann estimated that Anthem has a range of 1,000 to 1,500 kilometers and can carry a 200-kilogram payload. The report also placed the missile’s estimated unit cost between $500 and $6,000.

Covenant reportedly plans to manufacture approximately 1,000 Anthem missiles in 2027 at facilities in the United States and Germany.

According to the report, the company’s German and Israeli operations “operate as quasi-independent entities with mostly localized supply chains, held under a unique corporate structure,” which the report says places the company outside American export controls.

Earlier in October, Denmark announced its intention to purchase the Anthem missile system.

Russia’s 2022 invasion of Ukraine has also prompted several European countries to seek new weapons systems, including Israeli-made defense technology, as governments reassess their military capabilities and readiness.