Anduril and US Navy invest $6.6 billion to boost Virginia-class submarine parts production
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Defense tech firm Anduril announced on October 7, 2026, a $3.7 billion investment to develop a new shipyard in Baltimore County, Maryland, to build critical components for the U.S. Navy's Virginia-class submarines. The U.S. Navy concurrently awarded Anduril a contract worth up to $2.9 billion for submarine component manufacturing, with payments tied to production outcomes and Anduril assuming most execution risk. The combined $6.6 billion investment and contract aim to expand arms production amid global conflicts. The new facility, named Arsenal-2, is expected to be operational by the end of the decade, creating 3,100 direct jobs and over 11,000 indirect jobs. Anduril Chief Strategy Officer Christian Brose stated that the government is buying the results of the company's facility investment. Anduril is already building a California facility for Virginia-class submarine components like torpedo tubes and plans to expand into larger submarine modules and hull sections at the Baltimore shipyard. The Virginia-class submarines are the Navy's latest nuclear-powered attack submarines.
Source report
Defense technology firm Anduril announced on Tuesday that it will invest $3.7 billion to develop a new shipyard in Maryland, dedicated to manufacturing critical components for the U.S. Navy's Virginia-class submarines. The move comes as Washington seeks to strengthen its maritime defense capabilities.
Following the investment, the U.S. Navy awarded Anduril a contract worth up to $2.9 billion to produce submarine components. According to the defense startup, payments under the contract are tied directly to production outcomes, with Anduril assuming most of the execution risk.
The combined investment and contract, valued at up to $6.6 billion, are part of a broader effort by the United States and its allies to expand arms production in the wake of Russia's invasion of Ukraine and ongoing conflicts in the Middle East.
New Facility: Arsenal-2
The new plant, named Arsenal-2, will be located in Baltimore County, Maryland. Key details include:
- Expected to be operational by the end of the decade
- Will create 3,100 direct jobs
- Expected to support over 11,000 indirect jobs
Contract and Production Details
Christian Brose, chief strategy officer at Anduril, commented on the $2.9 billion government contract:
"It's really the government buying the results of what we're able to produce from the facility that we've invested in."
Brose also noted that Anduril is already building a facility in California to manufacture critical Virginia-class submarine components, such as torpedo tubes, helping to address urgent capacity shortfalls in the U.S. industrial base. Once the Baltimore shipyard becomes operational, the company plans to expand into producing larger submarine modules and hull sections.
About the Virginia-Class Submarines
Virginia-class submarines are the Navy's latest generation of nuclear-powered attack submarines. Capable of traveling at over 25 knots, they are designed for:
- Anti-submarine warfare
- Land-attack strikes
- Surveillance missions
The submarines are jointly built by General Dynamics' Electric Boat and Huntington Ingalls Industries.
About Anduril
Founded in 2017 by Palmer Luckey, Anduril is a defense firm best known for its autonomous systems, drones, and software built for the U.S. military and its allies. The company has expanded beyond drones into:
- Maritime and undersea systems
- Command-and-control software designed to connect military sensors, weapons, and other systems
The new Maryland plant follows Anduril's $1 billion Arsenal-1 facility in Ohio, which began producing autonomous combat drones this year.
###### Share:
###### More In MilTech
Source
Defense NewsWestern