President Donald Trump announced the project, called Arsenal-2, which will supply General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding for final assembly. Anduril’s planned private investment and the maximum Navy contract value total $6.6 billion.
The facility is intended to expand the submarine industrial base by allowing more construction work to proceed in parallel. Anduril said additional suppliers, infrastructure, workers and manufacturing capacity are needed to meet U.S. fleet requirements and AUKUS commitments.
Maryland facility targets 2030 start
Arsenal-2 will occupy a 187-acre site at Tradepoint Atlantic in Baltimore County’s Sparrows Point complex. The facility will cover more than 2 million square feet and use existing road, rail and maritime connections to suppliers and submarine builders.
Anduril is investing $3.7B into Arsenal-2.
The next great American Shipyard. https://t.co/nXkNv0uINq— Anduril Industries (@anduriltech) October 6, 2026
Permitting and site preparation are to begin immediately, with construction starting once the necessary approvals are in place. Initial operations are expected in 2030, followed by a gradual increase in production as Anduril builds its workforce, supplier base and manufacturing capacity.
The company projects 3,100 direct jobs and more than 11,000 indirect jobs associated with the development. It estimates the site will generate $2 billion in annual economic output, including $312 million in wages.
Plans include a functional 1,200-foot graving dock, high-bay assembly halls and reconfigurable production lines. Fabrication, assembly, testing and integration areas will be positioned to reduce component movements and staging bottlenecks.
Navy payments tied to output
The Navy contract links payments to demonstrated production results. Anduril said this structure places most of the execution risk on the company while aligning incentives with timely delivery and production quality.
ArsenalOS, Anduril’s industrial software platform, will connect fabrication workflows, outfitting, material movement, inspections and documentation. Digital work instructions, embedded quality controls, sensing and automation will support skilled trades and provide real-time visibility into production.
California site to prepare manufacturing processes
Anduril is establishing a separate 160,000-square-foot facility in Orange County, California, to manufacture critical Virginia-class components and support SUBSAFE-qualified production qualification efforts. The company said the site would provide a two-year operational head start for developing and validating manufacturing methods, workflows and quality systems before Arsenal-2 opens.
The California facility will support prototypes, Virginia-class test assets and maritime components, including torpedo tubes. It will also recruit and train an initial workforce using the systems and standards intended for the Maryland operation.
Once Arsenal-2 begins operating, the Orange County facility will continue supporting maritime manufacturing across Anduril’s industrial network. The company said it used a similar approach at Arsenal-1 in Ohio, developing its workforce and production processes ahead of full-scale operations.
