US defence technology company Anduril Industries will invest $3.7 billion to build a new shipyard in Maryland that will manufacture components for the US Navy’s Virginia-class attack submarines, alongside a Navy contract worth up to $2.9 billion.
The combined investment and contract package could reach $6.6 billion, with Anduril planning to build the new facility at Tradepoint Atlantic in Baltimore County as it expands from autonomous systems and drones into the US Navy’s submarine industrial base.
Key Highlights
- Anduril will invest $3.7 billion of its own money in the Maryland shipyard.
- The US Navy has awarded Anduril a contract worth up to $2.9 billion for submarine components.
- The combined package could reach $6.6 billion.
- The new facility, named Arsenal-2, will be built at Tradepoint Atlantic in Baltimore County.
- The shipyard is expected to cover more than 2 million square feet across about 187 acres.
- Initial operations are expected to begin in 2030.
- Maryland officials expect the facility to employ about 3,100 workers when fully operational.
- Anduril said the project could support more than 14,000 jobs directly and indirectly.
- The company plans to manufacture increasingly complex components for Virginia-class nuclear-powered attack submarines.
Anduril $3.7 Billion Maryland Shipyard Project
The Anduril $3.7 billion Maryland shipyard will be known as Arsenal-2 and will be located on the Sparrows Point site in Baltimore County, an area historically associated with Bethlehem Steel.
Anduril described the facility as a software-defined shipyard covering more than 2 million square feet on approximately 187 acres.
The company plans to operate the facility using its ArsenalOS production software, integrating digital manufacturing systems into the shipbuilding process.
Permitting and site preparation are expected to begin immediately, while initial operations are targeted for 2030.
Production is expected to expand as the facility becomes fully operational.
US Navy Contract Worth Up to $2.9 Billion
The US Navy’s contract with Anduril is separate from the company’s investment in the shipyard itself.
The Navy award is intended to fund the production of submarine components, rather than the construction of Arsenal-2.
Payments will be linked to production outcomes, meaning Anduril is taking significant responsibility for executing the manufacturing programme.
Anduril Chief Strategy Officer Christian Brose said the government would essentially be purchasing the results produced by a facility that the company itself is investing in.
Anduril Expands Into Submarine Manufacturing
The Maryland project represents a major expansion for Anduril, a company better known for drones, autonomous systems and defence technology.
The company is already planning a smaller manufacturing facility in Orange County, California, where it intends to produce components including torpedo tubes.
US officials have identified some submarine components as bottlenecks in the country’s defence manufacturing supply chain.
Once Arsenal-2 becomes operational, Anduril plans to manufacture larger and more complex submarine modules and hull sections, including bow assemblies.
Virginia-Class Submarines to Benefit From Added Capacity
The Virginia-class is the US Navy’s current fleet of nuclear-powered attack submarines.
The submarines are jointly built by General Dynamics Electric Boat and HII’s Newport News Shipbuilding.
Virginia-class submarines are designed for missions including anti-submarine warfare, surveillance and reconnaissance, and land-attack operations. They can travel at speeds exceeding 25 knots.
The Navy has faced challenges in meeting its targeted annual submarine production levels, creating pressure to expand the industrial base.
Anduril said its entry into the supply chain would provide an additional source for complex components and large assemblies, allowing more manufacturing work to take place simultaneously.
US administration officials estimate that the additional capacity could increase production by approximately 15%.
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Maryland Shipyard Expected to Create Thousands of Jobs
The Arsenal-2 project is expected to have a significant economic impact on Maryland.
The office of Maryland Governor Wes Moore said the shipyard could employ approximately 3,100 people once it reaches full operational capacity.
Anduril and the White House have separately cited more than 3,000 direct jobs and more than 11,000 indirect jobs associated with the project.
State officials estimate that the development could support more than 14,000 jobs in total and generate more than $2 billion in annual economic output.
Anduril Enters Major Legacy Navy Programme
The Maryland shipyard marks Anduril’s first major entry into the supply chain supporting a long-established US Navy programme.
The company has built its reputation around autonomous defence systems, drones, artificial intelligence and other emerging military technologies.
Its move into conventional submarine manufacturing signals an expansion into large-scale defence production and could make Anduril an increasingly important supplier within the US naval industrial base.
The Arsenal-2 project is expected to add manufacturing capacity while giving the Navy another industrial source for complex Virginia-class submarine components.
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