The Washington Post reported that the defense company “Covenant,” backed by Peter Thiel, a technology billionaire, has started producing long-range and low-cost cruise missiles in response to the reduction of America’s munitions stockpiles in the war with the Islamic Republic.

The company announced on Wednesday, 18 Shahrivar that the “Anthem” missile, designed to carry heavy payloads for rapid and large-scale production, has so far undergone about 200 test flights. Covenant also said it has received orders worth about $150 million, with deliveries beginning in 2027.

Michael Koffman, CEO of Covenant, said that in the first five weeks of the war with the Islamic Republic, the United States fired more than a thousand Tomahawk missiles, and that a possible war with Russia or China would require much more weaponry.

Covenant, which was founded in 2024, has raised $250 million in funding so far. The company opened a plant in Dallas on Wednesday and plans to set up additional production facilities in Germany and northern Israel by the end of the year.