Anduril to build $3.7B submarine component factory in Baltimore
Anduril announced a new two-million-square-foot plant in Baltimore to manufacture Virginia-class submarine parts like torpedo tubes, backed by a Navy contract worth up to $2.9 billion.
What happened
On Tuesday, the Trump administration announced that Anduril will construct Arsenal-2, a major manufacturing facility in Baltimore designed to produce components for Virginia-class nuclear submarines. The project involves a $3.7 billion investment from Anduril to build and operate the facility, combined with a Navy contract valued at up to $2.9 billion for component production. The plant will eventually produce torpedo tubes and other critical parts that will be shipped to General Dynamics Electric Boat and Huntington Ingalls Industries' Newport News Shipbuilding for assembly into submarines.
The facility represents a major expansion of Anduril's manufacturing footprint beyond its current focus on smaller vessels. The company also plans a smaller 160,000-square-foot facility in Orange County, California to begin producing components and validating production methods before Arsenal-2 opens. Anduril claims the Baltimore plant will create 3,100 direct jobs and support more than 11,000 indirect jobs, with $2 billion in annual economic output.
However, significant work remains before components leave the factories. Production and quality testing will take years, and parts must be certified as safe for submarine use before entering production boats. No timeline has been set for when the first Anduril-produced parts will actually be installed on a submarine.
Background
The Navy builds Virginia-class submarines at two shipyards and aims to produce two per year. The program has been constrained by workforce shortages, supplier delays, and quality issues, with actual production averaging only 1.1 to 1.2 boats per year since 2022. The Navy has 26 boats in service and 31 more on order to reach a planned fleet of 59. Additionally, Australia committed to acquiring three Virginia-class boats under the 2021 AUKUS agreement with the U.S. and U.K., adding to production demand.
What to watch next
Watch for Anduril to staff and begin operations at the Orange County facility within the next year or so, then develop and validate torpedo tube and component production methods. Certification timelines for the first parts will depend on Navy and industry collaboration. Arsenal-2 construction and staffing will take several years before production ramps. Any delays in either facility or certification could affect Navy submarine delivery schedules.
Sources
- Original report: Anduril Dives Into Submarine Construction With New Baltimore Plant (TWZ, Oct 6, 2026) Defense media
- The War Zone: Anduril Dives Into Submarine Construction With New Baltimore Plant Defense media
- The Hill: Anduril to invest $3.7B in new Baltimore shipyard to build Virginia-class submarine parts Other outlet
- CBS News: $3.7 billion investment by Anduril Industries in new Baltimore County shipyard facility Mainstream media
- business.maryland.gov: Investment of the decade: Anduril Industries kicks off $3.7B project in Maryland Government document
- DefenseScoop: White House, Anduril announce plans for new ‘software-defined’ shipyard to help build attack submarines Defense media
- NOTUS: Anduril Plans a $3.7 Billion Baltimore Shipyard for Virginia-Class Submarines Other outlet
- Washington Examiner: Anduril and the Navy announce $6.6 billion investment in new facility to build critical components for submarines Other outlet
- CNBC: Anduril lands $2.9 billion Navy submarine shipyard contract days after Luckey joins Pentagon weapons group Mainstream media
- Bloomberg.com: Drone Maker Anduril Pushes Into Submarines With Maryland Factory Mainstream media
- REBusinessOnline: Anduril Industries to Invest $3.7B for 2 MSF Shipyard Facility in Maryland, Create 3,100 Jobs Other outlet
Written by Anduril News with AI assistance from the original report and other coverage, in plain English. It can contain mistakes; check the original for anything important. How we write these.
