US Navy, Anduril Unveil $6.6B Shipyard Plan for Submarine Parts Production

Anduril Industries plans to invest $3.7 billion in a new Maryland shipyard to manufacture Virginia-class submarine components and other subsea systems, alongside a U.S. Navy contract worth up to $2.9 billion tied to production targets.

The Arsenal-2 facility will be built at Tradepoint Atlantic in Sparrows Point, Baltimore County, with permitting and site preparation beginning immediately and initial operations expected in 2030.

The combined public and private investment totals $6.6 billion, with Anduril set to build and operate the site. The U.S. Department of War said the facility is expected to be the largest of its kind in the United States and will be designed to produce submarines, submarine components and autonomous underwater vessels.

Under the Navy contract, payments of up to $2.9 billion will be tied directly to demonstrated production outcomes, while Anduril will provide the $3.7 billion private investment.

Arsenal-2 will manufacture complex components and large-scale assemblies for Virginia-class attack submarines before delivering them to General Dynamics Electric Boat and Huntington Ingalls Industries' Newport News Shipbuilding for final assembly.

The additional manufacturing source is intended to allow more submarine construction to take place in parallel and expand overall production capacity.

The planned facility will cover more than 2 million square feet on a 187-acre site and include a 1,200-foot graving dock, high-bay assembly halls, fabrication areas and reconfigurable production lines. Anduril's ArsenalOS industrial software platform will connect production workflows, material movement, inspections and documentation across the yard.

"Today, we're officially launching the construction of the largest new shipyard in the United States. Since World War II, there's been nothing like what we're doing today,” said President Donald Trump.

The project is expected to create 3,100 direct jobs and support more than 11,000 indirect jobs, while generating an estimated $2 billion in annual economic output.

Ahead of Arsenal-2 becoming operational, Anduril is establishing a 160,000-square-foot facility in Orange County, California, to manufacture critical Virginia-class submarine components and develop production processes and quality systems.

The site will support production of test assets and maritime components including torpedo tubes, giving the company a two-year operational head start before the Maryland facility comes online

Virginia-class submarines are currently built by General Dynamics Electric Boat and Newport News Shipbuilding, with additional industrial capacity required to meet U.S. fleet requirements and AUKUS commitment.