Anduril to build Baltimore shipyard for Virginia-class submarines

Anduril is establishing a new shipyard in Baltimore County, Md., to manufacture parts for Virginia-class submarines, backed by a $6.6 billion investment that marks the company’s first entry into the supply chain for a major legacy defense program, breakingdefense.com reported.

Private Capital Outweighs Navy Funding for Arsenal-2

The facility, designated Arsenal-2, involves $3.7 billion in private capital alongside up to $2.9 billion from the U.S. Navy.

“This contract structure ensures that Anduril, not the taxpayer, takes on the majority of the execution risk, aligning incentives to ensure on-time, high-quality submarine production,” Anduril stated in its announcement.

Anduril Plans Phased Submarine Component Production

General Dynamics Electric Boat and HII’s Newport News Shipbuilding jointly build Virginia-class submarines. Arsenal-2 is positioned to produce complex components and large-scale assemblies for these vessels. The company plans to initially manufacture basic modules, such as torpedo tubes, before expanding into full sections like the bow.

To accelerate development, Anduril will simultaneously start manufacturing submarine parts at a 160,000-square-foot facility in Orange County, California. This western location provides a two-year operational head start to validate manufacturing methods and train early personnel before Arsenal-2 reaches full scale.

The 2 million-square-foot Baltimore County facility is located at Tradepoint Atlantic. Permitting is slated to begin immediately, with initial operations anticipated by 2030.

Submarine Industrial Base Capacity Pressures

Industry suppliers have struggled to meet the Navy’s annual production goals. Chief of Naval Operations Adm. Daryl Caudle informed the House Appropriations Committee in May that industry is expected to deliver two Virginia-class submarines annually by around 2032.

However, a Government Accountability Office report released in July indicated that shipbuilders were producing at a rate of one per year as of June 2025. Late material deliveries from suppliers and a shortage of experienced workers drove those trends.

A senior administration official told reporters that Anduril’s facility will add roughly 9 million hours annually to the submarine industrial base, representing a 15 percent increase in production capacity.

“Having those torpedo tubes earlier would let us move production of current Virginia submarines under construction faster,” a senior administration official stated.

Tradepoint Atlantic Shipyard Creates Thousands of Jobs

Anduril anticipates that the Tradepoint Atlantic shipyard will generate more than 3,000 direct jobs and upwards of 11,000 indirect roles. Chris Brose, Anduril’s president and chief strategy officer, noted that discussions regarding the need for expanded maritime production capacity have taken place with the administration and the Navy for nearly two years.

“We need to grow the maritime industrial base, the submarine industrial base, so that we can produce more submarines,” Brose told reporters. “This is not about taking food off the plate of anybody. This is about putting more food on the table and being able to meet the requirements that our country has to produce more submarines.”