Breaking

Anduril plans $6.6B Virginia-class sub parts shipyard in Maryland

Arsenal-2 at Sparrows Point pairs $3.7 billion of Anduril’s own money with a Navy contract worth up to $2.9 billion, and is slated to open in 2030 with 3,100 direct jobs.

Motion Media News Staff

Oct 6, 2026

3 minutes

Photo: AAICDrones, CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0), via Wikimedia Commons (cropped) (source)

Anduril Industries will build a shipyard called Arsenal-2 at Tradepoint Atlantic in Baltimore County, Md., to make parts for the Navy's Virginia-class attack submarines, the company and the White House announced Tuesday, Oct. 6, according to Breaking Defense. The outlet put the total at $6.6 billion, combining $3.7 billion of Anduril's own capital with a Navy contract worth as much as $2.9 billion.

President Donald Trump and Wes Moore, the governor of Maryland, were scheduled to mark the project at the site Tuesday afternoon, WMAR-2 News reported.

What the yard will build

Anduril plans to begin with torpedo tubes and other smaller parts, then move up to larger modules and whole hull sections such as bows, according to Breaking Defense and WYPR. It will not build complete boats. Its output will feed final assembly at the two yards that share the class, Electric Boat, owned by General Dynamics, and HII's Newport News Shipbuilding, WMAR said.

Payments under the Navy contract are tied to production outcomes, WMAR reported. Anduril said in its release that this structure means the company, "not the taxpayer, takes on the majority of the execution risk," Breaking Defense reported.

A senior administration official told reporters that Arsenal-2 could add roughly 9 million labor hours a year to the submarine industrial base, about a 15% increase in Virginia-class production capacity, according to Breaking Defense and WMAR. The official said torpedo tubes are among the parts now slowing boats already under construction.

The plans call for a 187-acre site with over 2 million square feet of space and a 1,200-foot graving dock, WMAR reported. Anduril projects 3,100 direct jobs and initial operations in 2030, with permitting starting right away.

Until then, Anduril is opening a 160,000-square-foot plant in Orange County, Calif., to prototype and produce torpedo tubes, Breaking Defense reported. Chris Brose, who is Anduril's president as well as its chief strategy officer, said the company has begun prototyping tubes from design data sent by Electric Boat, the Washington Examiner reported.

The production gap

The Navy wants two Virginia-class submarines a year. A Government Accountability Office report released in July found builders were producing about one a year as of June 2025, citing late supplier deliveries and worker shortages, according to Breaking Defense. "This is not about taking food off the plate of anybody," Brose told reporters.

Sparrows Point is the former Bethlehem Steel site, whose shipyard turned out Liberty ships in World War II. Tradepoint Atlantic bought the shuttered property in 2014, WYPR reported.

What's next

According to WYPR, Moore said the state and county would together match as much as 13% of the private money Anduril expects to invest. The county's share, a personal property tax break worth up to $210 million over 30 years, went to the County Council as legislation on Monday. Residents can comment at hearings on Oct. 13 and Oct. 27, and a council vote is expected Nov. 2, WYPR reported. Any new state funding would need approval from the Maryland General Assembly, WMAR said.