Anduril Secures Navy Contract to Expand US Submarine Production

A new manufacturing complex in Maryland is set to expand the United States' submarine production capacity, combining an investment by defense technology company Anduril Industries with a Navy contract worth up to $2.9 billion. Announced in October 2026, the project aims to supply components and large assemblies for Virginia-class attack submarines, create thousands of jobs, and ease pressure on the country's existing shipbuilding industry.

According to CNBC and The Defense Post, Anduril plans to invest $3.7 billion to develop Arsenal-2 at Tradepoint Atlantic in Sparrows Point, Baltimore County. The combined investment and contract represent a $6.6 billion production expansion, with initial operations expected to begin in 2030.

The planned facility will cover more than 2 million square feet across a 187-acre site. Its infrastructure will include assembly halls, fabrication areas, adaptable production lines, and a 1,200-foot graving dock, with road, rail, and maritime connections supporting manufacturing and transportation.

Anduril expects the complex to generate more than 3,100 direct jobs and support over 11,000 indirect jobs. The company also plans to manufacture some components, including torpedo tubes, at a 160,000-square-foot facility in Orange County, California.

Chris Brose, Anduril's president and chief strategy officer, said the investment is intended to address the country's submarine production requirements.

"This is about putting more food on the table and being able to meet the requirements that our country has to produce more submarines," said Chris Brose, Anduril's president and chief strategy officer.

The company intends to supply components to General Dynamics Electric Boat and Huntington Ingalls Industries' Newport News Shipbuilding, the two principal builders of Virginia-class submarines. Anduril said its initial focus would be on components, with the longer-term goal of manufacturing larger ship sections.

Brose described the project as an opportunity to change how submarine manufacturing facilities operate.

"This is an opportunity to really reimagine how a shipyard is built and how this work is done, and that's just not something that our current industrial base has the luxury of doing," Brose said.

Anduril also plans to use its ArsenalOS manufacturing management software at the site. According to The Defense Post, the system is designed to coordinate fabrication, assembly, material movement, inspections, and production records while providing workers and managers with real-time information about manufacturing progress.

The expansion comes as US submarine production continues to fall short of long-standing goals. Responsible Statecraft reported that attack submarine output declined from two vessels annually in 2015 to approximately 1.3 in 2026, despite billions of dollars in federal investment intended to strengthen the industrial base.

The Government Accountability Office estimated that the shipbuilding industry needs 174,000 additional workers over the next decade to meet Navy requirements. The demand for additional capacity is also linked to the AUKUS agreement between the United States, the United Kingdom, and Australia, under which Australia is expected to receive three Virginia-class submarines in the coming years.

Anduril's entry into conventional naval manufacturing represents an expansion beyond its established work in autonomous drones, maritime vehicles, and artificial intelligence-enabled defense software. The company was founded in 2017 and must develop the workforce, supplier network, and manufacturing capabilities needed to support large-scale submarine production.

President Donald Trump highlighted the project during remarks marking the investment in Maryland, thanking Anduril co-founder Palmer Luckey and describing him as a personal acquaintance.

Trump called Luckey a "friend" and a "very brilliant guy."

The announcement also drew attention because Luckey had recently been appointed to Project Meridian, a Pentagon initiative examining capabilities for future conflicts. Former House Speaker Newt Gingrich and SpaceX CEO Elon Musk were also named to the initiative, raising questions about the growing role of defense technology executives in federal military planning.

Emil Michael, the Department of Defense's chief technology officer, rejected concerns about Luckey's participation in the initiative.

"There's really nothing to see here," said Emil Michael, the Department of Defense's chief technology officer.

Michael defended the composition of Project Meridian, which includes academics, former military personnel, and industry leaders.

He described the group's membership as "exactly the right kind of mix that you want" to prepare for future conflicts.

Trump also characterized the broader shipbuilding effort as a push to develop more advanced American naval capabilities.

"next-generation American submarines," Trump said in describing the shipyard's objective.

Anduril's investment and Navy contract are intended to increase the volume of submarine components entering the existing production network, while the company develops the workforce and manufacturing infrastructure required to begin operations in 2030.