Anduril, U.S. Navy Invest $6.6 Billion to Expand America's Submarine Industrial Base
Arsenal-2 Will Expand Virginia-Class Submarine Production Capacity.
Anduril has announced Arsenal-2, a new software-defined shipyard backed by a $3.7 billion private investment to manufacture critical Virginia-class submarine components and assemblies. The facility is part of a broader $6.6 billion effort, including a Navy contract worth up to $2.9 billion, aimed at expanding the U.S. submarine industrial base and increasing production capacity.
Arsenal-2 will manufacture large-scale assemblies and complex components for delivery to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding for final assembly.
By adding another production site, Arsenal-2 is intended to enable more submarine construction to happen in parallel while expanding the supplier base, infrastructure, workforce, and overall capacity needed to meet U.S. Navy and AUKUS requirements.
Building Arsenal-2 in Baltimore County.
Arsenal-2 will be built at Tradepoint Atlantic in Baltimore County, Maryland, creating 3,100 direct jobs and more than 11,000 indirect jobs. The project is expected to generate $2 billion in annual economic output, including $312 million in wages.
Permitting and site preparation will begin immediately, with construction starting after approvals. Initial operations are expected in 2030, followed by a gradual production ramp as Anduril expands its workforce, suppliers, infrastructure, and manufacturing capacity.
Located within the historic Sparrows Point complex, Arsenal-2 will benefit from existing road, rail, and maritime infrastructure connecting the site to suppliers and the U.S. submarine industry. The project also brings shipbuilding back to a site that once played a major role in American naval manufacturing.
A Shipyard Designed for Production.
Arsenal-2 is being designed as a modern, software-defined shipbuilding system focused on high-volume, high-precision production. The 2-million-square-foot facility, spread across 187 acres, will feature optimized production flows, a 1,200-foot graving dock, multimodal transport access, high-bay assembly halls, and reconfigurable production lines.
ArsenalOS, Anduril’s industrial software platform, will serve as the digital backbone, connecting fabrication, assembly, material movement, inspections, and documentation in a single system. Digital work instructions, quality controls, sensing, and automation will support skilled trades while improving production visibility, consistency, and worker training.
Building the Industrial Foundation.
Alongside Arsenal-2’s construction, Anduril is building the manufacturing capabilities needed to support the new yard. A new 160,000-square-foot facility in Orange County, California, will produce critical Virginia-class submarine components and support SUBSAFE-qualified production efforts.
The facility provides a two-year head start to develop and validate manufacturing processes, workflows, and quality systems before Arsenal-2 becomes operational. It will support prototyping and production of maritime components, including torpedo tubes, while helping recruit and train the workforce needed for the larger facility.
The approach mirrors Arsenal-1 in Ohio, where workforce, processes, and production systems were established ahead of full-scale operations.
A Distributed Industrial Network.
Arsenal-2 forms part of Anduril’s broader network of production facilities across the United States and allied nations, including Arsenal-1 in Ohio, the maritime factory at Quonset Point, Rhode Island, Ghost Shark in Sydney, Australia, a rocket motor facility in Mississippi, and more than 15 additional sites. Together, these facilities create a distributed industrial network designed to scale production of defense systems and components.
Expanding Virginia-class production will require additional capacity across the submarine industrial base. By investing private capital in new shipbuilding infrastructure, developing production capabilities before Arsenal-2 opens, and tying the contract to measurable outcomes, Anduril is adding capacity to the existing industrial base and supporting the expansion of submarine production.
Quotes on Arsenal-2:
U.S. SENATE
Senator Angela Alsobrooks, MD:
"This $3.7 billion investment is indication once again of the strength of Baltimore, and the impact Baltimore has on our entire state and country. Maryland continues to be at the forefront of technology, innovation, and advancing our national security goals. This investment will be a huge economic boost to our region – adding over 13,000 jobs – and it will support the Navy's efforts to increase production and advance their submarine technology."
U.S. House of Representatives
Congressman Johnny Olszewski, MD-02:
"Every family deserves the dignity that comes with a good paycheck, and this project will help deliver that promise to thousands of Marylanders. As someone whose roots run deep in Sparrows Point, I know what this historic site has meant to generations of Marylanders and what it means to see good jobs and advanced manufacturing return to this community. Not only does this project strengthen our economic and national security — it also gives us a chance to write the next chapter of Sparrows Point's storied industrial legacy. I'm proud to welcome this investment to Baltimore County and excited about what it will mean for workers, families, and our entire region.“
Congresswoman Sarah Elfreth, MD-03
"By bringing over 13,000 jobs to the Baltimore region, we are once again investing in Maryland's long and storied history of shipbuilding and maritime manufacturing. I am glad to see this critical combination of private sector and government investment to support our economy, strengthen our national security, and revitalize key industries. Sparrows Point built the first Liberty Ship in WWII, and it is only fitting that the same site will now produce critical components for modern submarines. I will continue to fight for additional investment at Coast Guard Yard Baltimore and the redevelopment of Curtis Creek to complement these investments as we take inspiration from what once was to build a bright and successful future for Maryland's maritime industry.“
Congressman Steny H. Hoyer, MD-05:
"This is an exciting announcement for Maryland, and the benefits of this investment and partnership will be felt not only in the greater Baltimore area but all across our state. Much of the future of defense technology centers on out-innovating our adversaries on autonomous and uncrewed vehicles at sea and in the air, and Maryland is already emerging as a leader in this field, thanks to the work we've done in Southern Maryland around Pax River as well as partnerships with educational institutions like the College of Southern Maryland. I thank Anduril for recognizing this leadership and for seizing this opportunity to create good jobs in our state and advance our national security.“
Congressman Andy Harris, MD-01:
"Thanks to the One Big Beautiful Bill, which laid the groundwork for efforts like this to expand our defense industrial base in Maryland, adding thousands of good-paying jobs in the state while providing the best weaponry possible for our men and women in uniform."
State of Maryland — Executive
Governor Wes Moore, State of Maryland:
"This massive new project will deliver the largest private investment, drive billions of dollars in economic activity, and create the most jobs in Maryland in history. That means thousands of Marylanders will have a new pathway to work, wages, and wealth through advanced training and high-skilled maritime manufacturing jobs. We thank Anduril for choosing Maryland, and we're ready to build the future of our aerospace and defense economy together."
Lt. Governor Aruna Miller, State of Maryland:
"This new facility is a generational investment in Maryland's future, strengthening our position as a national leader in advanced manufacturing, aerospace, and defense. The project builds on our proud manufacturing legacy while bringing thousands of good-paying jobs to Sparrows Point. The Moore-Miller Administration is proud to partner with Anduril to ensure the technologies and vessels shaping America's future are built right here in Maryland."
Comptroller Brooke E. Lierman, State of Maryland:
"Maryland has a skilled manufacturing workforce with a long tradition of shipbuilding that goes back centuries. I'm pleased to welcome Anduril to the Baltimore region and to Tradepoint Atlantic, a world-class facility and global hub for innovation. This commitment will create thousands of high-paying jobs for Marylanders. I invite others to join Anduril in investing in a region on the rise."
Secretary Harry Coker, Jr., Maryland Department of Commerce:
"Anduril Industries' landmark investment confirms Maryland's status as a global leader in maritime defense manufacturing and a home to the industries of the future. We are thrilled to be working with Anduril to support this transformative project and bring thousands of new jobs to Maryland."
Maryland General Assembly
Speaker Joseline Peña-Melnyk, Speaker of the Maryland House of Delegates:
"Maryland has a proud history of building things, and we have the skilled workforce and infrastructure to help build what comes next. We welcome this investment by Anduril at Sparrows Point and the thousands of good-paying manufacturing jobs it will bring to our state. This is an exciting opportunity to build on the remarkable revitalization of Sparrows Point, strengthen Maryland's manufacturing economy, and create new opportunities for Maryland workers and families."
Delegate Ben Barnes, Chair, House Appropriations Committee:
"For decades, Bethlehem Steel provided good paying jobs for families across Maryland. Today, Anduril's investment in Baltimore puts us back on the map for manufacturing and makes our economy even stronger for Maryland families."
Senator Guy Guzzone, Chair, Budget and Taxation Committee:
"I'm very pleased to welcome Anduril to Tradepoint Atlantic and look forward to working with them to put Baltimore back in the shipbuilding business. Manufacturing jobs are critical to Maryland's future, and Anduril's significant investment will make a big difference in leading the way forward."
Delegate Bob Long, District 6:
"Sparrows Point's proud history of helping protect our country is being recognized by the Trump Administration and Anduril Industries. Bringing manufacturing and good-paying jobs to our community and continuing that proud legacy."
Senator Johnny Ray Salling, District 6:
"I want to thank Our President Donald J. Trump and Anduril Industries for coming to Tradepoint Atlantic and being a part of a new opportunity in our community. Looking forward to being a part of history and working with Anduril on this exciting project."
Baltimore County
County Executive Kathy Klausmeier, Baltimore County:
"Arsenal 2 marks a turning point for Sparrows Point. For generations, this site shaped America's steel and shipbuilding legacy, including its critical role during World War II, when workers here built the vessels that helped defend our nation. Seeing new life and advanced manufacturing return to this historic area is exciting for Baltimore County. This project will bring thousands of good jobs, new opportunities for local businesses, and billions in long-term economic value, strengthening our county for decades to come. It also reflects the significant progress at Tradepoint Atlantic, solidifying its status as a premier maritime hub and key partner in our region's economic future, building a stronger, more resilient foundation for the entire region.“
Council Chairman Mike Ertel, District 6:
"For decades, Sparrows Point defined American industry, and Anduril's investment carries that legacy forward in a huge way. As we welcome Anduril to Baltimore County, we are thrilled to see the return of manufacturing and shipbuilding to this historic site. With thousands of new jobs and billions in economic investment on the way, this project represents a key milestone and transformative moment in Baltimore County's history."
Councilman Pat Young, District 1:
"With thousands of manufacturing jobs on the way and a billion-dollar economic boost, this project represents extraordinary momentum for our region and a significant opportunity for our communities. This investment will help strengthen our industrial base and build a stronger, more resilient economic future."
Councilman Julian Jones, District 4:
"Sparrows Point has long been an economic engine for our region, and as the son of a factory worker who spent decades at the steel mill there, I know firsthand what those opportunities have meant to working families across Baltimore County. Anduril's multi-billion-dollar investment will have a transformative impact for this community, creating more than 3,000 new jobs and marking the historic return of shipbuilding to Sparrows Point. I welcome Anduril to our community and look forward to a close partnership that continues to drive economic growth across Baltimore County."
Councilman David Marks, District 5:
"This is a historic announcement that keeps with Baltimore's tradition as a center for industry and shipbuilding."
Councilman Todd Crandell, District 7:
"Over the last 10 years, Tradepoint Atlantic has led a transformative redevelopment of Sparrows Point, bringing nearly 20,000 jobs back to our community. With billions in economic investment and thousands of jobs, Anduril's investment will bring Sparrows Point's total employment to more than 23,000 workers, eclipsing the job totals last seen during the days of Bethlehem Steel. This resurgence is a testament to the incredible strength and resilience of our community and our heritage in industry."
Industry & Commerce
Kerry Doyle, Managing Director, Tradepoint Atlantic:
"Today's announcement is about more than welcoming a new tenant—it's about restoring one of America's most important industrial assets to its historic purpose. For generations, Sparrows Point helped build the ships that defended our nation. Today, that legacy continues as Anduril reactivates this iconic shipyard to support the next generation of American defense capabilities. Tradepoint Atlantic is uniquely built for this mission. Our strategic East Coast location, deep-water port, robust rail and interstate connections, and access to a world-class workforce make this one of the most capable industrial sites in the country. Together with Anduril, we're bringing a legacy industry back to Baltimore, creating thousands of skilled jobs, and helping strengthen America's defense industrial base for decades to come.“
𝐑𝐞𝐦𝐨𝐭𝐞 𝐇𝐢𝐫𝐞 𝐨𝐫 𝐁𝐮𝐢𝐥𝐝 𝐖𝐢𝐭𝐡 𝐔𝐬: 𝐁𝐮𝐢𝐥𝐝𝐰𝐞𝐫𝐤𝐬 helps technology companies build in India: two ways. Hire vetted remote engineers, product leaders, designers, and GTM professionals directly onto your team. Or partner with a proven development studio to design, build, and ship your product end-to-end. Learn More At: menlotimes.com/buildwerks
