Anduril to build $3.7B submarine component factory near Baltimore by 2030
Anduril will construct Arsenal-2, a major submarine parts facility outside Baltimore, as part of a $6.6 billion Navy effort to speed up Virginia-class submarine production. The U.S. government will own 40 percent of the shipyard subsidiary.
What happened
Anduril announced plans to build Arsenal-2, a submarine component manufacturing facility on nearly 200 acres outside Baltimore, with initial operations by 2030. The company is funding $3.7 billion of the $6.6 billion total cost; the Navy is contributing $2.9 billion through a contract award. The facility will produce critical submarine parts including torpedo tubes, impulse tanks, and eventually hull sections for Virginia-class submarines, delivering them to the prime contractors General Dynamics Electric Boat and HII Newport News Shipbuilding.
President Trump announced the project on October 6, 2026, at a Navy event near Baltimore, noting that U.S. taxpayers will hold a 40 percent stake in the new Anduril subsidiary that operates the shipyard. This stake is not in Anduril itself. Vice Admiral Robert Gaucher, who oversees Navy submarine construction, said the facility is designed to increase overall submarine production by 15 percent, or about 9 million production hours yearly.
Anduril plans to break ground in early 2027. The facility will use Anduril's ArsenalOS industrial software platform to manage production, with features including digital design records, automated traceability for welding and other precision work, and software tools to help less experienced workers perform tasks faster. Navy payments will be tied to demonstrated production outcomes.
Background
Virginia-class submarines are the Navy's most advanced attack submarines. The U.S. submarine industrial base has been strained: currently only two shipyards—Electric Boat in Connecticut and Newport News in Virginia—build Navy submarines. The Navy's 2026 shipbuilding plan aims to increase distributed production from 10 percent to 50 percent of work, spreading the load across multiple suppliers and sites to boost overall throughput. Anduril, a defense-technology company founded in 2017, has been expanding beyond software into hardware and manufacturing in recent years. This is Anduril's second major manufacturing facility, following earlier announcements about submarine component production in Maryland.
What to watch next
Anduril plans to break ground in early 2027 and begin operations by 2030. Watch for groundbreaking announcements and updates on production timeline and hiring as the facility ramps up.
Sources
- Original report: Anduril wades into traditional shipbuilding arena with major submarine play (Defense One, Oct 7, 2026) Defense media
- STL.News: Inside Anduril’s $3.7B Arsenal-2 Shipyard 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.
