Anduril and the U.S. Navy announced a combined $6.6 billion effort for Arsenal-2, a planned facility at Tradepoint Atlantic in Sparrows Point, Baltimore County. The figure combines Anduril’s announced $3.7 billion private investment with a Navy contract worth up to $2.9 billion. The project is intended to expand the Virginia-class submarine supply chain by making components and assemblies—not complete submarines.
What is Arsenal-2?
Arsenal-2 is Anduril’s name for a planned, two-million-square-foot manufacturing facility at Tradepoint Atlantic, within the Sparrows Point complex in Baltimore County. Anduril describes it as a “software-defined shipyard” intended to support the Virginia-class submarine program. The project is planned for an existing industrial site, but the cited announcements describe a proposed facility and future production, not an operating shipyard. Anduril’s Arsenal-2 project page and the Maryland Department of Commerce announcement of October 6, 2026 identify the project and location.
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What will Anduril make—and who will build the submarines?
Initial production is expected to focus on submarine components, including torpedo tubes, according to U.S. Naval Institute News. The facility could later expand to modules and, as a longer-term ambition, full ship sections. That possibility is not a commitment to build entire submarines. An industry official told USNI News: “Again, Anduril is not going to be producing entire submarines. That’s not our role.”
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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Virginia-class construction remains the role of the existing prime shipbuilders, General Dynamics Electric Boat and HII Newport News Shipbuilding, which work in a teaming arrangement. Anduril’s planned components and assemblies are intended to feed into those yards’ work, making Arsenal-2 an additional supplier in the industrial base rather than a replacement for the builders. Defense One’s October 7, 2026 report likewise describes the planned output as components and assemblies for the existing primes.
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How the $6.6 billion is structured
The headline total adds two distinct figures. Anduril says its Navy contract payments are tied to demonstrated production outcomes; the contract’s stated ceiling is “up to” $2.9 billion, not an unconditional payment already made. The announcements cited here do not provide a complete public payment schedule or the underlying award document.
| Part of the announced total | Amount | What it means |
|---|---|---|
| Anduril private investment | $3.7 billion | Announced company investment associated with the project. |
| Navy contract | Up to $2.9 billion | A contract ceiling, with payments tied to demonstrated production outcomes according to Anduril; not a guaranteed lump-sum payment. |
| Combined announced effort | $6.6 billion | The sum of the announced private investment and maximum contract value. |
These figures come from Anduril’s October 6, 2026 announcement, which was also covered by USNI News and the Associated Press.
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What jobs and economic impact are projected?
Maryland’s announcement projects more than 3,100 new permanent jobs and says the investment is expected to support over 14,000 jobs directly or indirectly. The state also projects more than $2 billion in annual economic output and an estimated $312 million in annual wages. These are forecasts, not jobs or economic activity already realized.
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The state says Maryland and Baltimore County have committed to matching up to 13 percent of the anticipated private investment through existing incentive programs and new appropriations. The new appropriations require approval by the Maryland General Assembly and Baltimore County Council, so the full amount should not be treated as already approved or disbursed. The details and projections are in the state’s project announcement.
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When is production expected to begin?
Anduril says production at the Maryland complex is expected to begin in 2030. Defense One reported a plan to break ground by early 2027 and begin initial operations by 2030; these are planned milestones, not completed construction. USNI News reports that an interim California facility is intended to begin production two years before the Maryland operation.
| Stage | Reported timing | Status |
|---|---|---|
| Planned groundbreaking at Sparrows Point | By early 2027 | Plan reported by Defense One, not a completed milestone. |
| Interim California facility | Two years before Maryland production | Plan reported by USNI News; the cited report does not give a calendar year. |
| Expected Maryland production | 2030 | Anduril’s stated expectation, not a confirmed opening date. |
A senior Trump administration official told USNI News the project could add nine million labor hours a year, described as a 15 percent increase for the Virginia-class program. That is a projected capacity claim attributed to the official, not demonstrated output.
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What has been said about a 40 percent stake?
At the October 6 event, President Trump said taxpayers would receive a 40 percent stake in the shipyard. Defense One reported Anduril’s clarification that the stake would be in a new subsidiary created to operate the shipyard—not in Anduril Industries itself. Additional specifics were not immediately available in that report, so the claim should not be read as evidence that the government owns 40 percent of Anduril or as a fully documented description of the subsidiary’s legal and financial terms. The Associated Press also reported Trump’s statement.
Why the project matters to submarine construction
The Navy’s stated rationale is that submarine production needs more industrial capacity. Vice Adm. Robert Gaucher, who oversees Navy submarine construction, said: “As other nations challenge the rules-based order that keeps our oceans free and open, we need the deterrence and denial of our submarines now more than ever.” He also said: “At the same time, we must reckon with the fact that we have lost industrial capacity. Today, we start to rebuild it.” Both remarks were reported by Defense One on October 7, 2026.
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Anduril’s CEO, Brian Schimpf, invoked Sparrows Point’s industrial history, saying: “Sparrows Point helped build the fleet that won World War II.” The current project’s announced role is different: it is planned to manufacture submarine parts and assemblies that support the existing Virginia-class shipbuilders. Whether the projected jobs, production capacity, contract outcomes, and schedule materialize will depend on construction and future performance.
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