New Maryland Shipyard
Anduril plans a $3.7 billion Maryland shipyard to boost U.S. Navy submarine production capacity.
Anonymous
Anduril plans to invest $3.7 billion in Arsenal-2, a more than 2-million-square-foot shipyard at Sparrows Point in Baltimore County, Maryland, to produce components and assemblies for the U.S. Navy’s Virginia-class submarines. The Navy awarded the company a contract worth up to $2.9 billion, with payments tied to production results; established shipbuilders will continue to assemble the complete submarines. Production is expected to begin around 2030, with the facility making torpedo tubes and eventually larger submarine sections to help ease bottlenecks and expand manufacturing capacity. The project is expected to create about 3,100 direct jobs and support more than 11,000 indirect jobs. Anduril is also developing a California facility to begin producing torpedo tubes sooner.
Key Points
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Anduril says it will bear most of the execution risk under the Navy contract, with payments tied directly to what the facility produces; the company described the government as “buying the results” of its investment.
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A senior administration official estimated Arsenal-2 could add about 9 million labor hours of annual production capacity—roughly a 15% increase—and said torpedo tubes are among the components currently constraining submarine production.
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The planned site covers 187 acres and is to include a 1,200-foot graving dock, alongside fabrication and assembly areas and production lines.
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Anduril says it is applying digital technologies and manufacturing methods from commercial aerospace, breaking complex work into simpler tasks that a larger workforce can perform; its California operation has already begun prototyping and producing torpedo tubes using design information from Electric Boat.
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Maryland officials said Arsenal-2 is expected to generate $2 billion in annual economic output in the state, while Anduril plans to recruit locally, including recent high school graduates and vocational-program graduates.
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