Anduril and US Navy commit $6.6bn to Maryland shipyard for submarine parts

Anduril has said it will invest $3.7bn to develop a new shipyard in Maryland building critical components for US Navy Virginia-class submarines, in a combined package with the Navy valued at up to $6.6bn (Reuters).

The plant, dubbed Arsenal-2, is to be built in Baltimore County and is expected to be up and running by the end of the decade (Reuters). The US Navy has awarded Anduril a contract worth up to $2.9bn to manufacture submarine components, with payments tied directly to production outcomes and Anduril assuming most of the execution risk (Reuters). The combined investment and contract package is valued at up to $6.6bn (Reuters).

The project is expected to create 3,100 direct jobs and support more than 11,000 indirect jobs (Reuters). Anduril chief strategy officer Christian Brose said: “It’s really the government buying the results of what we’re able to produce from the facility that we’ve invested in” (Reuters).

The company is already building a facility in California making Virginia-class components such as torpedo tubes, aimed at addressing urgent capacity shortfalls in the US industrial base, and plans to expand into larger submarine modules and hull sections once the Baltimore plant is operational (Reuters). US President Donald Trump was scheduled to deliver remarks at 4 p.m. on Tuesday at Tradepoint Atlantic, the 3,300-acre industrial site in southeast Baltimore County where Anduril was to announce the project (NY Post; The Baltimore Banner).