Anduril Plans Baltimore Submarine Shipyard With US Government

The Arsenal-2 facility at Sparrows Point will produce components for Virginia-class submarines bound for the US Navy and Australia.

Updated on Nov. 8, 2026 in Manufacturing

Wide photograph of an industrial harbor waterfront with a steel gantry crane, low metal sheds along the quay, and gray water under overcast sky. — Anduril plans to build its Arsenal-2 production facility at Baltimore's Sparrows Point shipyard to make components for Virginia-class submarines for the US Navy and Australia. AI Illustration. Upload story photo >

Live Poll

Do you think the US should spend more on its military?

President Donald Trump announced the Arsenal-2 production facility in early October 2026, a partnership between defense company Anduril and the US government at the Sparrows Point shipyard in Baltimore, Maryland. The shipyard will produce components for Virginia-class submarines, with finished parts sent to shipyards in Connecticut and Virginia.

Why it matters

The project is intended to reduce the risk of delays in delivering submarines under the AUKUS agreement, which was signed in September 2021. It also adds domestic submarine component manufacturing capacity in the Baltimore area.

Anduril will contribute $3.7 billion and the US government $2.9 billion toward a total investment of $6.6 billion, with nearly 3,100 new jobs projected in Maryland. The Baltimore shipyard is scheduled to begin operations in 2030, and the timing of the cost and job projections has not been detailed.

The players

Anduril

Anduril is a US defense technology company that is already supplying Canberra with Ghost Shark unmanned submarines.

General Dynamics Electric Boat

General Dynamics Electric Boat is a shipyard in Connecticut that will receive finished submarine components from the Baltimore facility for final assembly.

Newport News Shipbuilding

Newport News Shipbuilding is a shipyard in Virginia that will receive finished submarine components from the Baltimore facility for final assembly.

The details

Anduril will be co-responsible for developing the Sparrows Point shipyard, where components for Virginia-class submarines will be manufactured. Finished components will be sent to General Dynamics Electric Boat in Connecticut and Newport News Shipbuilding in Virginia for final vessel assembly.

September 2021: The AUKUS agreement was signed.
March 2023: The Optimal Pathway was announced, including the sale of three Virginia-class submarines to Australia.
October 6, 2026: Trump announced the Arsenal-2 investment.
2030: The Baltimore shipyard is scheduled to begin operations.
2032, 2035 and 2038: Virginia-class submarines are scheduled for delivery to the Royal Australian Navy.

Market Landscape

The Arsenal-2 project extends the AUKUS agreement signed in September 2021 by adding a domestic submarine component facility in Baltimore. It positions Anduril as a contributor to the submarine supply chain that supports the Optimal Pathway sale of three Virginia-class submarines to Australia.

The project is projected to create nearly 3,100 jobs in Maryland, which could affect local employment opportunities once operations begin in 2030. Residents in the Baltimore area may see changes to local hiring as the Sparrows Point shipyard develops.

The takeaway

Large defense shipbuilding projects depend on coordinated supply chains across several states, so delays at one site can affect delivery schedules elsewhere. Tracking the Sparrows Point timeline toward its 2030 start will show whether the AUKUS submarine deliveries stay on schedule.