Anduril said it will invest $3.7 billion in a shipyard at Sparrows Point to make Virginia-class submarine parts. The Navy awarded a contract of up to $2.9 billion tied to production outcomes.
Anduril Industries said on Tuesday it will invest $3.7 billion to build a manufacturing complex at Sparrows Point, outside Baltimore, to produce parts for the US Navy's Virginia-class attack submarines. President Donald Trump announced the project, called Arsenal-2, as a software-defined shipyard, Naval News reported, citing the company.
Bloomberg said the site is expected to employ about 3,100 people when fully operational, according to Governor Wes Moore's office, to begin operations in 2030 and to reach full production in 2031. Naval News said the project would support more than 11,000 indirect jobs and was projected to drive $2 billion in annual economic output, including an estimated $312 million in wages.
The Navy awarded Anduril a contract of up to $2.9 billion, with payments tied to demonstrated production, Naval News said. The company said that structure leaves most execution risk with Anduril rather than the taxpayer. The yard is meant to add capacity so more submarine construction can proceed in parallel.
Anduril is known for drones and autonomous aircraft. The Maryland plant is its move into submarine components, not a claim that it will build complete submarines.
Construction has not started in the accounts reviewed. The company said operations are planned for 2030.