Anduril announced a $3.7 billion investment to build a new shipyard in Baltimore County, Maryland, alongside a U.S. Navy contract worth up to $2.9 billion for manufacturing Virginia-class submarine components. The combined value of the private capital and government award reaches $6.6 billion. The facility, designated Arsenal-2, is scheduled to become operational by the end of the decade.
What it means
The new Maryland plant will expand Anduril’s production capacity for nuclear-powered attack submarines beyond its existing California operations, which currently manufacture components such as torpedo tubes. Once Arsenal-2 opens, the company plans to produce larger submarine modules and hull sections. The facility is projected to create 3,100 direct jobs and support more than 11,000 indirect positions in the region.
The Navy contract ties payments to production outcomes, shifting most execution risk to Anduril. Christian Brose, an executive at Anduril, said, “It’s really the government buying the results of what we’re able to produce from the facility that we’ve invested in.” This arrangement supports broader U.S. and allied efforts to increase arms manufacturing capacity following Russia’s invasion of Ukraine and ongoing conflicts in the Middle East. Virginia-class submarines, which are capable of traveling over 25 knots, are designed for anti-submarine warfare, land-attack strikes, and surveillance missions. They are currently built jointly by General Dynamics’ Electric Boat and Huntington Ingalls Industries.
Anduril, founded in 2017 by Palmer Luckey, has expanded from autonomous systems, drones, and military software into maritime and undersea systems. The company’s $1 billion Arsenal-1 facility in Ohio began producing autonomous combat drones earlier this year.
Key facts
- $3.7 billion: Anduril’s investment for the Maryland shipyard
- $2.9 billion: Value of the U.S. Navy contract awarded to Anduril
- $6.6 billion: Combined total of private investment and government contract
- Arsenal-2: Name of the new Baltimore County facility
- Baltimore County, Maryland: Location of the new shipyard
- End of the decade: Expected operational date for Arsenal-2
- 3,100 direct jobs and over 11,000 indirect jobs: Projected employment impact
- Virginia-class submarines: Nuclear-powered attack subs capable of exceeding 25 knots
Source: Anduril news release