President Donald Trump on Tuesday announced a $3.7 billion Anduril Industries shipyard at Sparrows Point, Maryland, that will build components for Virginia-class attack submarines on the site of a steel mill that closed in 2012.
Zoom in: The facility, which Anduril calls Arsenal-2, will span more than 2 million square feet on 187 acres and include a 1,200-foot graving dock, per WMAR. It will start with torpedo tubes, bow and stern sections, then move to larger submarine modules that feed into General Dynamics Electric Boat and Newport News for final assembly.
- The $3.7 billion covers "the cost of standing up the facility, building the workforce, filling it with modern technology and other capabilities required to do the work," Anduril president Chris Brose told reporters on a White House call, per AP.
By the numbers: Anduril says the yard will create 3,100 direct jobs and support more than 14,000 indirect ones. The government will commit $2.9 billion by buying what the factory produces, and Trump said taxpayers will take a 40% stake in the shipyard. Maryland and Baltimore County will match up to 13% of the private investment.
- A senior administration official said Arsenal-2 could add about 9 million labor hours of capacity a year, roughly a 15% increase, and that torpedo tubes are among the parts currently limiting production.
The backstory: The United States has 26 Virginia-class submarines and expects two more in the spring, but the program has struggled to hit the Navy's production targets. Trump signed an executive order in April 2025 to rebuild the maritime industrial base, and Sparrows Point built vessels during World War II before Bethlehem Steel shut down.
- "Sparrows Point helped build the fleet that won World War II," Anduril CEO Brian Schimpf said. "With Arsenal-2, Anduril will return large-scale shipbuilding to a site that can once again define American naval power."
The other side: Democratic Gov. Wes Moore skipped the event, and his spokesman said Moore was blocked from speaking while a White House official said he was invited as a guest. Moore still praised the project, saying it could create "the most jobs in Maryland in history."
What's next: Permitting and site preparation begin immediately, construction follows approvals, and initial operations are expected in 2030. Any new state appropriations need the Maryland General Assembly and the Baltimore County Council.
Why it matters: A software-first defense startup is being handed a piece of the nuclear submarine supply chain, with the government as both customer and part owner. It is the clearest sign yet of how the Pentagon wants to buy hardware.
