Covenant plans to begin producing intermediate-range missiles near Leipzig in 2027 as Germany seeks affordable cruise missiles (guided weapons for long-distance strikes) that can be deployed in large numbers. The missiles would have a range of more than 1,500 kilometres, while production capacity could reach up to 1,000 units annually. Although Covenant is a U.S. company, most components are expected to come from Germany and other European countries. The project reflects Berlin's effort to complement more expensive long-range weapons systems with lower-cost supplies from Germany and Europe and address what officials regard as a capability gap. The search gained urgency after the United States no longer planned to provide Germany with Tomahawk cruise missiles despite earlier announcements. Covenant and Germany's defence ministry declined to comment.