Anduril plans to build a roughly two-million-square-foot facility called Arsenal-2 at Tradepoint Atlantic in Sparrows Point, Baltimore County. The planned plant is meant to make components and large assemblies for Virginia-class submarines—not complete submarines. Maryland production is targeted for 2030, so construction, qualification and the production ramp remain ahead.
What is Anduril building in Baltimore?
Arsenal-2 is a planned manufacturing facility on the former Sparrows Point industrial site at Tradepoint Atlantic, south of Baltimore. Anduril describes it as a “software-defined shipyard,” with a planned footprint of about two million square feet. The initial work is expected to focus on critical submarine components and large assemblies for the U.S. Navy’s Virginia class.
USNI News reported that early products could include torpedo tubes. The longer-term ambition is to expand into larger modules and potentially full hull sections, such as bows and sterns. Those larger products are future possibilities, not a description of what the Maryland plant can make today.
Is Anduril building complete submarines?
No. The announced plan is for Anduril to become a supplier of components and assemblies to the existing Virginia-class lead shipbuilders: General Dynamics Electric Boat and HII’s Newport News Shipbuilding. The established shipbuilders will continue to build the complete boats; Arsenal-2 is intended to add supplier capacity rather than replace them or take over submarine construction.
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Newport News Shipbuilding president Kari Wilkinson welcomed additional industrial-base capacity for submarine component manufacturing in a statement to USNI News. Hudson Institute naval analyst and former submariner Bryan Clark cautioned that regulated submarine parts limit how quickly a new supplier can scale: “There’s only so much you can do when you’re talking about a highly regulated set of parts like submarine parts,”
How much is the project worth, and what does the $6.6 billion include?
Anduril’s October 2026 announcement presents a combined $6.6 billion headline, but that figure combines two different things: planned private investment by Anduril and a Navy contract ceiling. It is not all a government grant, all private investment, or money already spent.
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| Component | Announced amount | What it means |
|---|---|---|
| Anduril planned private investment | $3.7 billion | Planned capital for the project, announced by Anduril and Maryland in 2026. |
| Navy contract | Up to $2.9 billion | Contract value ceiling announced by Anduril in 2026. The company says payments are tied to demonstrated production outcomes. |
| Combined headline | $6.6 billion | The announced sum of planned private capital and the Navy contract ceiling; it does not mean all funds have been spent. |
When will the Baltimore plant open?
Anduril’s reported target is to have the Maryland facility production-ready in 2030. USNI News reported that a California facility is planned to begin submarine-part production about two years earlier, and that Anduril had begun building torpedo-tube prototypes there. USNI also reported, based on company confirmation, that the California facility was SUBSAFE certified.
These are prospective milestones, not evidence that Arsenal-2 is operating. Permitting, construction, staffing, production qualification and the Maryland plant’s ramp-up are still execution steps. The announcement does not establish that any of them have been completed.
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What does “software-defined shipyard” mean?
In USNI News’s account of the planned operating model, the digital approach includes managing factory layout and workflows, maintaining digital production records, using automation where it is suitable, and tracking safety-critical work such as precision welding. These are intended methods, not measured results from an operating Maryland plant; its productivity and performance cannot yet be assessed.
Why is the Navy seeking more submarine production capacity?
The project addresses a documented gap between the Navy’s Virginia-class production goal and actual output. The Government Accountability Office reported that production was running at about one submarine per year as of June 2025—half the Navy’s goal of two per year. GAO identified late supplier material deliveries and limited availability of experienced workers among the contributing factors.
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At the October 2026 announcement, a senior administration official projected that the added capacity could contribute roughly nine million labor hours annually and increase Virginia-class production by 15 percent. Those are projections reported by USNI News, not independently observed production gains. The new facility’s contribution will depend on whether it is built, qualified and able to deliver components at the planned scale.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What jobs and economic impact does Maryland expect?
The Maryland Department of Commerce projected more than 3,100 direct jobs and more than 14,000 jobs supported overall. It also estimated over $2 billion in annual economic output and $312 million in annual wages. These are state projections, not reported hiring or realized economic results; the direct-job estimate is distinct from the broader number of jobs supported.
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Why Sparrows Point?
Tradepoint Atlantic sits on the Sparrows Point industrial site, where Bethlehem Steel produced steel and ships during both World Wars. Maryland’s announcement connects the new project to that industrial history. The site’s heritage provides context, but it does not establish that historic shipyard infrastructure is ready for Arsenal-2 or that the project has begun construction.
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