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Anduril to Invest $3.7 Billion in Maryland Shipyard for Submarine Parts
Published: October 6, 2026
Anduril Industries, a defense technology firm based in California, announced plans to invest $3.7 billion to develop a new shipyard in Maryland. The facility, known as Arsenal-2, will produce critical components for the U.S. Navy’s Virginia-class submarines as part of efforts to enhance the nation’s maritime defense capabilities.
The company confirmed on Tuesday that it would receive a $2.9 billion contract from the Navy for the manufacture of submarine parts. U.S. President Donald Trump is expected to unveil details of the project and the expansion of a naval shipyard in Baltimore later today.
Anduril, co-founded by Palmer Luckey, is noted for its innovation in uncrewed underwater vehicles and naval drones. Luckey is currently partnering with technology entrepreneur Elon Musk on Project Meridian, initiated by the Pentagon to explore advancements in autonomous and AI-driven military technologies.
The announcement follows Defense Secretary Pete Hegseth’s recent address, in which he outlined a 120-day study aimed at identifying new technologies necessary for maintaining U.S. battlefield supremacy. As part of broader measures, the Pentagon aims to accelerate naval shipbuilding and improve weapons production amid heightened concerns over regional conflicts, particularly the ongoing situation in Iran.
The Maryland shipyard is projected to create approximately 3,100 direct jobs and support over 11,000 additional roles. It will focus on manufacturing torpedo tubes and various hull components for upgraded Virginia-class submarines, which are set to accommodate up to 40 Tomahawk missiles each.
Currently, the Navy operates 26 Virginia-class submarines, with two more expected for delivery in 2027. However, American shipyards have faced challenges in meeting production targets due to supply chain issues and labor shortages, evidenced by a delivery rate of only 1.1 to 1.2 submarines annually.
Anduril President Chris Brose emphasized that the primary objective of the new facility is to ensure efficient component manufacturing for the Virginia-class submarines rather than developing new drone technologies. “It’s really the government buying the results of what we’re able to produce from the facility that we’ve invested in,” he stated.
