Defense contractor Anduril announced plans for a $3.7 billion investment in a new shipyard at Sparrows Point, Maryland, to manufacture components for the U.S. Navy's Virginia-class submarines. The project, named Arsenal-2, will span 2 million square feet and is expected to create more than 3,000 jobs in the region.
The company has secured a contract worth up to $2.9 billion from the Navy to help establish the facility, which will focus on producing torpedo tubes—a critical component for the nuclear-powered attack submarines. These submarines, which carry both torpedoes and Tomahawk cruise missiles launched from vertical launching systems, are currently built by Huntington Ingalls Industries' Newport News Shipbuilding and General Dynamics Electric Boat.
Chris Brose, Anduril's president and chief strategy officer, emphasized the strategic importance of the project. "This is about putting more food on the table and being able to meet requirements that our country has to produce more submarines," he said during a press briefing. He added that the company has identified bottlenecks in the submarine program that it can uniquely address.
Maryland Governor Wes Moore (D) hailed the investment as a major economic boost. "This massive new project will deliver the largest private investment and create the most jobs in Maryland in over a decade—driving billions of dollars in economic activity that will boost Maryland families not just in Baltimore County, but throughout the state," Moore said in a statement. He also highlighted the potential for advanced training and high-skilled maritime manufacturing jobs, saying, "With this facility, thousands of Marylanders will have new pathways to work, wages, and wealth."
The announcement comes as the Virginia-class submarine program has faced significant challenges. A July report from the Government Accountability Office (GAO) cited a shortage of experienced workers and late delivery of materials as major setbacks. Brose noted that Anduril's involvement is partly a response to these issues, saying, "As we've dug into this work and really worked closely with administration and with the Navy, we've really seen the problems that exist in this program are problems that we can uniquely contribute to."
The funding for the project is expected to come from the Pentagon as part of the regular budget process, according to a senior administration official who briefed reporters on Tuesday. The Trump administration has signaled support for the initiative, which aligns with broader efforts to expand U.S. naval capabilities amid growing global threats.
Anduril's expansion into submarine manufacturing marks a significant step for the company, which has traditionally focused on autonomous systems and defense technology. The firm's co-founder, Palmer Luckey, was recently named one of three leaders of the Pentagon's new "Project Meridian" initiative, alongside SpaceX AI CEO Elon Musk and former House Speaker Newt Gingrich (R-Ga.), to study the future of warfare.
The Baltimore shipyard is part of a larger trend of private investment in defense manufacturing, as the Navy seeks to accelerate submarine production to meet its fleet goals. With this new facility, Anduril aims to help address the supply chain and workforce challenges that have slowed the program.
Local officials and labor unions have welcomed the project, seeing it as a long-term economic anchor for the Baltimore area. The shipyard is expected to begin operations in phases, with full production capacity anticipated within the next several years.
