Anduril to invest $3.7B in Maryland submarine shipyard, creating 3,100 jobs
Anduril announced a $3.7 billion investment to build Arsenal-2, a 2-million-square-foot submarine shipyard in Baltimore County, Maryland. The facility is expected to create over 3,100 new jobs and become the largest private investment in the state in over a decade.
What happened
Anduril Industries, Maryland, and Baltimore County jointly announced on October 17, 2026, that the company will invest $3.7 billion to construct Arsenal-2, a software-defined shipyard at Tradepoint Atlantic in the Sparrows Point complex. The facility will span 2 million square feet and is designed to support submarine production for the U.S. Navy's Virginia-class submarine program. The project is expected to create more than 3,100 permanent new jobs and support over 14,000 jobs overall at the site. Anduril CEO Brian Schimpf said the shipyard will "add the production capacity that the Navy needs to meet its Virginia-class requirements." The facility is projected to generate more than $2 billion in annual economic output, including an estimated $312 million in wages each year.
Maryland and Baltimore County committed to provide incentives matching up to 13% of Anduril's investment through existing programs and new appropriations requiring legislative approval. The state will fund a Center of Excellence workforce training facility and pursue a Maritime Prosperity Zone federal designation for the region. The announcement emphasized Sparrows Point's historic role in American shipbuilding during World War II.
Background
Anduril Industries, founded in 2017, is a U.S. defense-technology company known for autonomous systems and command software. The company has grown rapidly, valued at $90 billion as of recent employee stock sales. The Virginia-class submarine is the U.S. Navy's primary attack submarine, built by General Dynamics Electric Boat. Arsenal-2 represents Anduril's entry into large-scale submarine manufacturing, a significant expansion beyond its current focus on drones, autonomous systems, and battlefield command software. Sparrows Point, in Baltimore County, is a historic industrial site that played a major role in American shipbuilding during World War II.
What to watch next
Maryland General Assembly and Baltimore County Council approval of state and local incentive commitments is required. The state will pursue federal Maritime Prosperity Zone designation. Construction timelines and first production schedules for Arsenal-2 have not been announced.
Sources
- Original report: Maryland, Baltimore County announce Anduril Industries to invest $3.7B in Arsenal-2 (Defense and Munitions, Oct 17, 2026) 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.
