Anduril Industries plans to invest $3.7 billion to build a new shipyard in Baltimore for the production of sections of Virginia-class attack submarines. This project will take place at Sparrows Point, a site historically known for shipbuilding by Bethlehem Steel. The facility will span 2 million square feet and is projected to create 14,000 jobs, including over 3,100 permanent positions, as well as indirect and construction jobs, according to company executives, Trump administration officials, and Maryland Governor Wes Moore. Hiring is expected to begin in 2029, with operations launching in 2030.
President Donald Trump is anticipated to formally announce the project alongside Anduril executives and senior Navy and Pentagon officials. The Navy has awarded Anduril a production contract worth up to $2.9 billion for submarine components, with federal funding expected to be allocated in future budgets.
Governor Moore stated, "This is a massive new project that’s going to deliver the largest private investment and create the most jobs in Maryland in well over a decade, and so that makes it one of the largest economic projects in our state’s history." He also noted that the project would bring more jobs to Sparrows Point than were retained by Bethlehem Steel over the last fifty years.
The Bethlehem Steel mill at Sparrows Point closed in 2012, and the area has since been redeveloped into the 3,300-acre Tradepoint Atlantic logistics and industrial hub. Anduril has secured a long-term lease with Tradepoint for the new facility.
The investment comes as the Navy aims to enhance production of Virginia-class submarines, which are designed for various military operations, including anti-submarine warfare and land strikes. Administration officials indicated that the new facility would increase production capacity by approximately 15 percent, addressing a bottleneck in the production of torpedo tubes.
Maryland and Baltimore County have committed to providing incentives worth up to 13% of Anduril’s anticipated private investment through existing economic development programs and new appropriations, which will require approval from the Maryland General Assembly and the Baltimore County Council. The state also plans to invest in a workforce training center to support the facility.
Anduril’s entry into submarine manufacturing represents a significant move for the defense-tech company, which has limited experience in heavy industrial work. The Navy typically purchases two Virginia-class submarines annually, but recent production rates have been around 1.1 to 1.2 per year. The new shipyard is part of a broader effort to meet and potentially exceed this demand.
The Pentagon and Congress have invested billions to expand the submarine industrial base, which encompasses the shipyards, suppliers, and workforce necessary for building and maintaining the fleet. This includes shifting some submarine construction to manufacturers beyond Electric Boat and Newport News, the two primary U.S. shipyards for nuclear-powered vessels.
Anduril is known for its work in autonomous weapons and drones, and it is also constructing a 5-million-square-foot complex in Columbus, Ohio, for mass-producing missiles and other military equipment. The company has begun prototyping torpedo tubes in California and plans to transition this work to Baltimore as the new facility becomes operational. If Anduril meets the Navy’s certification and safety standards, it may expand its production to larger modules, including entire bow and stern sections, which would be transported to General Dynamics Electric Boat in Connecticut and HII’s Newport News Shipbuilding in Virginia for final assembly.
Anduril President and Chief Strategy Officer Chris Brose acknowledged the project signifies a new direction for the company, which was initially hesitant about joining the Virginia-class program. However, he stated that Anduril could apply modern manufacturing techniques to an industry facing production challenges and aging infrastructure. Brose emphasized, "We’re going to approach how you build submarines differently," aiming to simplify the manufacturing process to accommodate less experienced workers.
Correction: A previous version of this article incorrectly described Maryland Gov. Wes Moore’s role in Tuesday’s announcement. He is scheduled to attend a separate announcement in the Tradepoint area later in the day.