Defense technology firm Anduril announced Tuesday it will invest $3.7 billion to build a new shipyard in Baltimore County, Maryland, to manufacture critical components for the U.S. Navy’s Virginia-class submarines. The Navy has awarded Anduril a contract worth up to $2.9 billion, with payments tied to production outcomes, bringing the total investment to $6.6 billion.
The facility, called Arsenal-2, will be built at Tradepoint Atlantic in Baltimore County and is expected to begin operations in 2030. It will create 3,100 direct jobs and support more than 11,000 indirect jobs, according to Anduril’s announcement. The site will drive $2 billion in annual economic output, including an estimated $312 million in wages each year.
Arsenal-2 will span more than 2 million square feet on a 187-acre site, with a 1,200-foot graving dock and multimodal road and rail access. The shipyard will use Anduril’s ArsenalOS industrial software platform to manage production workflows.
Anduril will initially manufacture components such as torpedo tubes, with plans to expand into larger submarine modules and hull sections. An industry official said the company’s “very aspirational goal, kind of off in the future, is to be able to produce full ship sections, you know, bows, sterns, etc.” The official added that Anduril will not produce entire submarines.
Permitting and site preparation will begin immediately, with construction starting once approvals are in place. The facility will deliver components to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding for final assembly.
Anduril is also building a 160,000-square-foot facility in Orange County, California, to manufacture Virginia-class components, including torpedo tubes, giving the company a two-year head start to validate production methods before Arsenal-2 comes online.
Christian Brose, Anduril’s chief strategy officer, said of the Navy contract: “It’s really the government buying the results of what we’re able to produce from the facility that we’ve invested in.”
The investment comes as the Navy seeks to increase attack submarine production to meet domestic fleet requirements and AUKUS commitments, according to Anduril’s announcement. The company said adding another source of component work will allow more submarine construction to happen in parallel across the industrial base.
Sources: Defense News · USNI News