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Anduril to Build $3.7B "Arsenal-2" Submarine Shipyard in Maryland
Anduril will build a 2-million-square-foot submarine-components shipyard at Tradepoint Atlantic, backed by a Navy contract worth up to $2.9B; the largest single private investment in Maryland history, promoted in person by Trump.
Why it matters
Defense tech company Anduril is entering the U.S. Navy's legacy shipbuilding supply chain: on Oct 6 it announced a $3.7 billion investment in "Arsenal-2," a 2-million-square-foot shipyard at Tradepoint Atlantic (Sparrows Point), Baltimore County, Maryland, to manufacture large assemblies — torpedo tubes, bows, sterns — for the Navy's Virginia-class nuclear attack submarines. Maryland's Department of Commerce calls it the largest single private investment in state history and its biggest job-creation project in over a decade.
Full report
The Navy separately awarded Anduril a contract worth up to $2.9 billion for submarine components, bringing the combined announcement to $6.6 billion. The yard is expected to create 3,100+ direct permanent jobs and 11,000+ indirect jobs — 14,000+ total — with over $2 billion in annual economic output including about $312 million in wages. Initial operations are targeted for 2030; components will feed final assembly at General Dynamics Electric Boat in Groton, CT, and HII Newport News in Virginia. Payments are tied to production outcomes, with Anduril — not taxpayers — carrying most execution risk.
President Trump appeared at Tradepoint Atlantic on Tuesday afternoon to promote the project. Maryland's Democratic Gov. Wes Moore was excluded from the speaking program at the White House's direction. The state and county pledged up to 13% in matching incentives (about $500M in public subsidies), including a $210M, 30-year property tax incentive still pending county council approval.
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