Anduril Industries and the U.S. Navy are planning a combined $6.6 billion investment intended to expand America’s submarine industrial base through the development of Arsenal-2, a new software-defined shipyard in Baltimore County, Maryland.
Anduril will invest $3.7 billion of private capital to build Arsenal-2.
Separately, the U.S. Navy has awarded Anduril a contract of up to $2.9 billion, with payments tied directly to demonstrated production outcomes.
The company said the structure places the majority of execution risk on Anduril while linking government payments to measurable manufacturing performance.
Together, the commitments represent $6.6 billion of planned investment in the U.S. submarine industrial base.
Arsenal-2 will manufacture complex components and large-scale assemblies for Virginia-class attack submarines.
The components will be delivered to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding for final assembly.
The additional production source is intended to allow more submarine construction work to occur simultaneously across the industrial base.
The investment comes as the U.S. seeks to increase Virginia-class production to support domestic fleet requirements and AUKUS commitments.
Anduril said achieving those objectives will require increased capacity across suppliers, infrastructure, workforce development and manufacturing.
Arsenal-2 will be developed at Tradepoint Atlantic within the Sparrows Point industrial complex in Baltimore County.
The project is expected to create approximately 3,100 direct jobs and support more than 11,000 indirect jobs.
Anduril estimates the facility will generate approximately $2 billion of annual economic output, including roughly $312 million in annual wages.
Permitting and site preparation are beginning immediately.
Construction will start after required approvals are obtained, with initial operations targeted for 2030.
Production is expected to increase progressively as Anduril develops the workforce, supplier network and manufacturing infrastructure required for submarine construction.
The facility will encompass more than two million square feet on approximately 187 acres, an area Anduril compares with roughly 40 football fields.
Arsenal-2 will include high-bay assembly halls, fabrication areas, reconfigurable production lines and a functional 1,200-foot graving dock.
Road, rail and maritime connections will support movement of large components.
The shipyard will be organized around Anduril’s ArsenalOS industrial software platform.
ArsenalOS will connect fabrication workflows, material movement, outfitting, inspections and production documentation within a single digital system.
Digital work instructions, embedded quality controls, sensors and automation will support welders, electricians, pipefitters, shipfitters, inspectors and other skilled workers.
Anduril is also establishing a 160,000-square-foot manufacturing facility in Orange County, California, that will begin developing and validating production processes approximately two years before Arsenal-2 comes online.
That operation will manufacture critical Virginia-class components and support SUBSAFE-qualified production work.
It will also produce test assets and maritime components including torpedo tubes while giving Anduril a location to recruit and train workers on processes that can later be scaled at Arsenal-2.
The Baltimore and California facilities will form part of Anduril’s larger distributed manufacturing network.
That network includes Arsenal-1 in Ohio, a maritime factory at Quonset Point in Rhode Island, the Ghost Shark factory in Sydney, Australia, a rocket motor facility in McHenry, Mississippi, and more than 15 additional production locations.
KEY QUOTES:
“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.”
Angela Alsobrooks, U.S. Senator From Maryland
“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.“
Johnny Olszewski, U.S. Representative For Maryland’s 2nd District
“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.“
Sarah Elfreth, U.S. Representative For Maryland’s 3rd District
“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.“
Steny H. Hoyer, U.S. Representative For Maryland’s 5th District
“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.”
Andy Harris, U.S. Representative For Maryland’s 1st District
“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.”
Wes Moore, Governor 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.”
Aruna Miller, Lieutenant Governor 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.”
Brooke E. Lierman, Comptroller of Maryland
“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.”
Harry Coker Jr., Secretary of the Maryland Department of Commerce
“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.”
Joseline Peña-Melnyk, Speaker of the Maryland House of Delegates
“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.”
Ben Barnes, Chair of the Maryland House Appropriations 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.”
Guy Guzzone, Chair of the Maryland Senate Budget and Taxation Committee
“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.”
Bob Long, Maryland Delegate, 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.”
Johnny Ray Salling, Maryland Senator, District 6
“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.“
Kathy Klausmeier, Baltimore County Executive
“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.”
Mike Ertel, Baltimore County Council Chairman, District 6
“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.”
Pat Young, Baltimore County Councilman, District 1
“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.”
Julian Jones, Baltimore County Councilman, District 4
“This is a historic announcement that keeps with Baltimore’s tradition as a center for industry and shipbuilding.”
David Marks, Baltimore County Councilman, District 5
“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.”
Todd Crandell, Baltimore County Councilman, District 7
“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.“
Kerry Doyle, Managing Director of Tradepoint Atlantic
