Anduril plans $6.6 billion Maryland submarine-parts shipyard

Anduril Industries plans to build a $6.6 billion submarine-parts factory at an unused Maryland shipyard, combining $3.7 billion in company investment with a $2.9 billion U.S. Navy contract. President Donald Trump announced the project at Sparrows Point, near Baltimore.

The facility, called Arsenal Two, will make torpedo tubes and larger hull sections for Virginia-class nuclear-powered attack submarines. Anduril President Chris Brose said its “main focus” would be manufacturing submarine components rather than developing new drone platforms.

“It’s really the government buying the results of what we’re able to produce from the facility that we’ve invested in,” Brose told reporters, according to Al Jazeera. Anduril said the operation would not be ready to produce ship parts until 2030, The Guardian reported.

Trump said U.S. taxpayers would “receive a 40% stake” in the shipyard. The Guardian reported that the meaning of that statement was unclear, including whether the government would take an equity share in Anduril, which will own the facility. Trump’s administration has made faster ship construction a priority and promoted plans for a future “golden fleet.”

Al Jazeera reported that the plant is expected to create 3,100 jobs and support more than 11,000 indirect roles. It said the Navy operates 26 Virginia-class fast-attack boats, with two more due for delivery in 2027. Labor shortages and supply-chain disruptions have hampered U.S. shipyards, leaving deliveries at 1.1 to 1.2 submarines a year, below the Pentagon’s target of two, according to Defense Department reports and Navy officials cited by Al Jazeera.

Anduril is known for autonomous military systems and has expanded into uncrewed maritime vehicles. The Guardian reported that the company has not disclosed how many of its smaller unmanned maritime systems have been deployed and has no known prior role in the specialized manufacture of crewed submarines. Al Jazeera said the company, founded in 2017, is valued at nearly $117 billion.

The project also draws attention to co-founder Palmer Luckey’s ties to the administration. Defense Secretary Pete Hegseth named Luckey as an adviser to Project Meridian, a Pentagon study of future warfare, The Guardian reported. Al Jazeera said Luckey and Elon Musk were tapped to lead the project, which includes a 120-day study of technology for future warfare, including autonomous and AI-powered military capabilities.

Luckey has hosted fundraisers for at least 20 Republican politicians, including Trump, and has given $5.9 million to Republican causes since 2017, The Guardian reported. He did not attend Trump’s appearance at the shipyard. Trump called him “a friend of mine” and a “brilliant guy.”

Acting Navy Secretary Hung Cao called the plant a partnership that “breaks through bureaucratic red tape.” To sailors sitting in front of him, he promised: “Anduril will be making these systems for you!”