Updated Oct. 7, 2026, 1:31 p.m. EDT. Defense-technology company Anduril plans to invest $3.7 billion in a new Maryland shipyard designed to manufacture components for Virginia-class submarines, while the U.S. Navy has awarded the company a separate contract valued at as much as $2.9 billion.
President Donald Trump said “American taxpayers will receive a 40% stake in the new shipyard.” Reuters reported that he did not explain the ownership mechanism, and the publicly available project announcement does not establish how that stake would be structured. The statement should therefore be treated as an administration claim pending contractual or corporate documentation.
The two commitments could total as much as $6.6 billion, although the private investment and federal procurement award are different forms of spending and should not be added together as if they were a single government subsidy. Maryland and Baltimore County also committed to match up to 13% of Anduril’s investment—about $481 million—subject to approval by local legislative bodies.
What Anduril plans to build
The proposed Arsenal-2 facility would occupy roughly 2 million square feet at Sparrows Point near the Port of Baltimore, on land once associated with Bethlehem Steel. Anduril says the site will use software, automation and advanced manufacturing methods to produce submarine components at greater scale.
Reuters reported that the plant is expected to make parts including torpedo tubes and doors for Virginia-class nuclear-powered attack submarines. The company says the broader project could create about 3,100 direct jobs and begin production by the end of the decade.
President Donald Trump highlighted the investment during a Tuesday event at Sparrows Point. The administration has framed the project as part of an effort to expand U.S. shipbuilding capacity, which has faced persistent production delays and supplier bottlenecks.
What the Navy award covers
The Navy award is intended to purchase submarine components from the planned operation. Reporting from Reuters and The Associated Press described the $2.9 billion figure as a federal contract or procurement commitment, while Anduril’s $3.7 billion represents the company’s planned capital investment.
Important details—including the timing of federal payments, production milestones and how risk would be shared if the facility falls behind schedule—will depend on the final contract and project execution. Announced investment and job totals are forward-looking estimates, not completed spending or current employment.
Why the project matters
Virginia-class submarines are currently assembled by General Dynamics Electric Boat and Huntington Ingalls Industries. A new component supplier could help relieve constraints in a production system that depends on a wide network of specialized manufacturers.
The announcement also extends Anduril’s move beyond drones and autonomous systems into heavy industrial production. It follows other large technology-manufacturing investments, including the recent Applied Materials and Intel research partnership. Readers can follow additional company developments in AskNovus Business.
Sources
- Anduril, Arsenal-2 project page — accessed Oct. 6, 2026.
- Reuters, Oct. 6, 2026.
- Associated Press, Oct. 6, 2026.
Featured image: Photo by Ant Rozetsky on Unsplash. Image is illustrative.