Anduril and Navy invest $6.6 billion in new Baltimore submarine factory
Anduril will build Arsenal-2, a $3.7 billion submarine component factory in Baltimore County with Navy backing, creating 3,100 direct jobs and producing parts for Virginia-class submarines starting in 2030.
What happened
President Trump announced Arsenal-2, a new shipyard to be built by Anduril Industries at Tradepoint Atlantic in Baltimore County, Maryland. The Navy awarded Anduril a contract valued up to $2.9 billion for submarine component production, with payments tied to actual production outcomes. Together, Anduril's $3.7 billion private investment and the Navy contract total $6.6 billion for the submarine industrial base.
The facility will manufacture critical components and large assemblies for Virginia-class submarines, which are the Navy's most advanced attack submarines. These parts will be delivered to General Dynamics Electric Boat and Huntington Ingalls Industries for final assembly. The factory will occupy more than 2 million square feet on 187 acres at Sparrows Point, a historic shipbuilding site that once built Liberty Ships during World War II.
Arsenal-2 is designed to expand submarine production capacity to meet Navy requirements and AUKUS (the U.S.-U.K.-Australia defense partnership) commitments. The facility is expected to create 3,100 direct jobs and support more than 11,000 indirect jobs, with $2 billion in annual economic output. Permitting will begin immediately, with construction to start once approvals are in place and initial operations expected in 2030.
Anduril is also building a 160,000-square-foot submarine component facility in Orange County, California, to develop manufacturing methods and train workers before Arsenal-2 opens. This mirrors Anduril's approach at Arsenal-1 in Ohio, where the company built production capacity ahead of full-scale operations.
Background
Virginia-class submarines are the Navy's primary attack submarines, used for intelligence gathering, special operations, and deterrence. They are built by two shipyards—General Dynamics Electric Boat in Connecticut and Huntington Ingalls Industries' Newport News Shipbuilding in Virginia—as part of one of the most complex manufacturing efforts in the country. The Navy wants to increase production from current levels to meet both domestic needs and commitments to allies like Australia and the United Kingdom under AUKUS.
Arsenal-2 is part of Anduril's broader industrial network, which includes Arsenal-1 in Columbus, Ohio (which built its first production aircraft in 2026), maritime factories in Rhode Island and Sydney, Australia, and a rocket motor facility in Mississippi. Anduril's software platform, ArsenalOS, will digitize production workflows, quality control, and worker training at the new facility.
What to watch next
Anduril will pursue permitting and site preparation immediately, with construction to begin as soon as approvals are obtained. The Orange County facility is already operational to validate manufacturing processes and train the initial workforce. Arsenal-2's initial operations are scheduled for 2030, with production scaling progressively thereafter. The Navy and Anduril will need to coordinate with General Dynamics and Huntington Ingalls on component specifications and delivery schedules.
Sources
- Original report: Anduril, U.S. Navy Invest $6.6 Billion to Expand America's Submarine Industrial Base (Anduril newsroom, Oct 6, 2026) Official Anduril
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.
