Anduril to invest $3.7B in new Baltimore shipyard to build Virginia-class submarine parts

Defense contractor Anduril is planning to invest $3.7 billion into a new shipyard in Sparrows Point, Baltimore, to manufacture parts for Virginia-class submarines.

The company secured up to a $2.9 billion contract with the U.S. Navy to help establish the 2 million square-foot facility, dubbed Arsenal-2, that will create more than 3,000 jobs in Maryland.

“This is about putting more food on the table and being able to meet requirements that our country has to produce more submarines,” Chris Brose, Anduril’s president and chief strategy officer, said during a press briefing.

Brose said the goal is to produce more torpedo tubes.

The Virginia-class submarines, nuclear-powered attack submarines which have vertical launching system-launched cruise missile capability, are jointly built by HII’s Newport News Shipbuilding and General Dynamics Electric Boat.

“This massive new project will deliver the largest private investment and create the most jobs in Maryland in over a decade — driving billions of dollars in economic activity that will boost Maryland families not just in Baltimore County, but throughout the state,” said Maryland Gov. Wes Moore (D) said in a statement .

“With this facility, thousands of Marylanders will have new pathways to work, wages, and wealth through advanced training and high-skilled maritime manufacturing jobs,” Moore added.

The new Baltimore facility comes as the Virginia-class submarine has faced setbacks with a shortage of experienced workers and late delivery of materials, according to a July report from the Government Accountability Office (GAO).

“As we’ve dug into this work and really worked closely with administration and with the Navy, we’ve really seen the problems that exist in this program are problems that we can uniquely contribute to,” Brose said.

The company’s co-founder Palmer Luckey was also recently tapped as one of three people — alongside SpaceX AI CEO Elon Musk and former House Speaker Newt Gingrich (R-Ga.) — to lead the Pentagon’s new group to study the future of warfare called “ Project Meridian .”

A senior administration official told reporters on Tuesday that $2.9 billion for the facility will come from the Pentagon and the Trump administration expects the funding to fit into the regular budget process.