Key facts
- Anduril will invest $3.7 billion to develop a new shipyard in Maryland.
- The US Navy awarded Anduril a contract valued at up to $2.9 billion for submarine components.
- The total value of the investment and contract is up to $6.6 billion.
- The new shipyard, Arsenal-2, is slated to be operational by the end of the decade.
- The facility is expected to create 3,100 direct jobs.
- Anduril is also building a facility in California for Virginia-class submarine components.
Defense technology firm Anduril announced on Tuesday it will invest $3.7 billion to establish a new shipyard in Baltimore County, Maryland, dedicated to producing critical components for the US Navy's Virginia-class submarines. This initiative is part of a broader effort by the United States to increase its defense manufacturing capacity, particularly in response to global conflicts.
Complementing the investment, the US Navy has awarded Anduril a contract valued at up to $2.9 billion. This contract ties payments directly to production outcomes, placing most of the execution risk on the company. The combined value of Anduril's investment and the Navy contract reaches up to $6.6 billion.
The new facility, named Arsenal-2, is anticipated to be operational by the end of the decade and is expected to generate 3,100 direct jobs, with an additional 11,000 indirect jobs supported. Anduril's chief strategy officer, Christian Brose, explained that the contract essentially represents the government purchasing the results from the facility Anduril is investing in.
Anduril is already developing a similar facility in California focused on components like torpedo tubes for the Virginia-class submarines, addressing existing capacity shortages in the US industrial base. Once the Baltimore shipyard is operational, the company plans to expand its production to include larger submarine modules and hull sections. The Virginia-class submarines are nuclear-powered attack submarines capable of speeds over 25 knots, designed for various missions including anti-submarine warfare and land-attack strikes. These submarines are currently built by a joint venture between General Dynamics' Electric Boat and Huntington Ingalls Industries.
Founded in 2017 by Palmer Luckey, Anduril is primarily known for its autonomous systems, drones, and military software. However, the company has diversified into maritime and undersea systems, as well as command-and-control software. This new shipyard follows Anduril's $1 billion Arsenal-1 facility in Ohio, which began producing autonomous combat drones earlier this year.