Defense technology company Anduril Industries confirmed on Sept. 30 that it will invest $3.7 billion to build a new shipyard in Maryland, named Arsenal-2, to produce key components for the U.S. Navy's Virginia-class attack submarines. In parallel, the company will receive a $2.9 billion contract from the U.S. Navy to manufacture submarine parts.
Under the plan, President Donald Trump is set to announce the project and the expansion of the naval shipyard in Baltimore, Maryland, on the afternoon of the same day.
California-based Anduril was co-founded by Palmer Luckey. Luckey is currently leading a new U.S. Department of Defense project alongside tech billionaire Elon Musk, a former senior Trump adviser. The two were tasked by the Pentagon to lead Project Meridian, a newly announced initiative focused on the future of warfare, including autonomous, AI-driven and maritime military capabilities.
Valued at nearly $117 billion, Anduril specializes in underwater and surface unmanned vehicles — so-called naval drones — for the U.S. military and its allies.
The Meridian initiative was announced during Defense Secretary Pete Hegseth's force posture speech last week in Virginia, part of a 120-day study to identify new technologies needed for America's next-generation battlefield dominance.
The investment is the latest step in a broader series of Pentagon measures to accelerate naval shipbuilding and weapons production, driven by the war against Iran and other regional conflicts that continue to threaten global oil flows, underscoring the critical role of maritime power.
Founded in 2017 by Luckey, Anduril is known for its autonomous systems, drones and military software. The startup has expanded beyond drones into maritime and underwater systems, as well as command-and-control software designed to connect sensors, weapons and other military systems.
The Maryland facility will produce torpedo tubes and larger hull sections for the U.S. Navy's upgraded Virginia-class fast attack submarines, which are being modified to carry up to 40 Tomahawk missiles each. Although nuclear-powered, these warships are not part of the U.S. strategic nuclear deterrent.
The plant is expected to create 3,100 direct jobs and support more than 11,000 indirect positions.
The U.S. Navy currently operates 26 Virginia-class fast attack submarines, with two more expected to be delivered in 2027. According to Defense Department reports and Navy officials, U.S. shipyards are struggling to meet the target of producing two new submarines per year due to supply chain disruptions and prolonged labor shortages. Official disclosures confirm the delivery rate has stalled at just 1.1 to 1.2 submarines per year.
Speaking to reporters the same day, Anduril President Chris Brose said the "main focus" of the new plant is to prioritize component production for Virginia-class submarines rather than developing any new drone platform.
"It's essentially the government buying the output that we can produce from a facility that we have invested in," he said.
