Anduril Arsenal-2 is a planned $3.7 billion shipyard at Sparrows Point, Maryland, aimed at expanding production of components for Virginia-class submarines.
Maryland officials said the project would create more than 3,100 permanent jobs and directly or indirectly support more than 14,000 jobs. The company plans a roughly 2-million-square-foot facility at Tradepoint Atlantic.
Defense News reported that a Navy contract could be worth up to $2.9 billion, with payments tied to production results. That figure is a ceiling, not money already obligated.
Table of Contents
What Anduril Arsenal-2 Is Intended to Build
Defense News reported that Anduril already produces submarine torpedo tubes in California and plans to expand at Arsenal-2 into larger modules and hull sections for the Virginia-class program.
The Maryland governor’s office described the facility as a new shipyard intended to add industrial capacity for the Navy. The state release said operations are planned around the end of the decade.
The project is therefore aimed at adding supplier capacity for submarine components rather than at building complete submarines. Maryland’s announcement frames Arsenal-2 as added supplier capacity, while Defense News describes Anduril’s role as manufacturing parts and larger structural sections for the Navy’s submarine enterprise.
How the $3.7 Billion Private Investment Fits
The $3.7 billion figure is Anduril’s planned private capital investment, according to both the state and Defense News. Maryland said the project is expected to generate more than $2 billion in annual economic output once established.
The state and local governments are also considering incentives tied to the project. Those commitments are subject to approvals and conditions, so they should not be treated as cash already paid to Anduril.
Maryland’s jobs and economic-output figures are projections tied to the planned buildout. They describe the expected scale of the project if it proceeds as announced, not employment or output already realized at the site.
The Navy Contract Is an Up-To Amount
Defense News reported a Navy contract with a potential value of up to $2.9 billion. The outlet said payments are linked to what the facility produces rather than a single immediate payment.
Combining the planned private investment with the Navy contract ceiling produces the widely cited figure of up to $6.6 billion. The ceiling should not be described as an awarded or obligated $6.6 billion.
FAQ: Anduril Arsenal-2
Where will Anduril Arsenal-2 be built?
The planned shipyard is at Tradepoint Atlantic in Sparrows Point, Baltimore County, Maryland.
What will Anduril Arsenal-2 make?
Defense News says the yard is intended for Virginia-class submarine components including larger modules and hull sections.
Is the Navy paying Anduril Arsenal-2 $2.9 billion now?
No. Defense News reports a contract worth up to $2.9 billion with payments tied to production outcomes.
Looking Ahead
The next milestones are site development, required state and local approvals, and clearer Navy production orders. Operations are planned around the end of the decade rather than immediately.
Sources
- Maryland Governor — Arsenal-2 jobs and investment announcement
- Defense News — Anduril and Navy submarine-parts investment
