Anduril Industries announced it will invest $3.7 billion to develop a new shipyard in Maryland, which will produce critical components for the United States Navy’s Virginia-class submarines. The investment comes alongside a $2.9 billion contract from the US Navy for submarine parts manufacturing.
The project, named Arsenal-2, was confirmed by Anduril on Tuesday. US President Donald Trump was scheduled to unveil the project and announce an expansion of the naval shipyard in Baltimore, Maryland, on the same day.
Anduril, co-founded by Palmer Luckey, is involved in a new Defense Department initiative called Project Meridian, which focuses on future warfare technologies, including autonomous and AI-powered military capabilities.
The Maryland facility will manufacture torpedo tubes and larger hull components for the upgraded Virginia-class fast attack submarines, which are designed to carry up to 40 Tomahawk missiles each. The facility is expected to create approximately 3,100 jobs and support over 11,000 indirect roles.
Currently, the US Navy operates 26 Virginia-class submarines, with two more expected to be delivered in 2027. However, American shipyards have faced challenges in meeting the production target of two new submarines per year due to supply chain disruptions and labor shortages, with the delivery rate currently stalled at 1.1 to 1.2 submarines annually.
Anduril President Chris Brose stated that the primary focus of the new shipyard is on component manufacturing for the Virginia-class submarines rather than developing new drone platforms. He emphasized that the government is purchasing the results of the facility's production efforts.