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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteAnduril plans to build Arsenal-2, a two-million-square-foot shipyard at Tradepoint Atlantic in the Sparrows Point complex of Baltimore County, to make components for the U.S. Navy’s Virginia-class submarine program. Maryland production is expected to begin in 2030. The project’s announced $3.7 billion private investment is separate from a Navy contract worth up to $2.9 billion, which depends on demonstrated production outcomes.
What Anduril plans to build
Arsenal-2 is intended to add manufacturing capacity to the submarine industrial base. The planned facility will initially focus on components, including torpedo tubes, rather than complete submarines. General Dynamics Electric Boat and HII Newport News Shipbuilding are the current builders of Virginia-class submarines; Arsenal-2 is intended to become an additional source of parts for the program. USNI News reported that the site is designed to include a 1,200-foot graving dock and rail access.
Components first, with larger work as a longer-term ambition
Anduril’s near-term production focus includes submarine components such as torpedo tubes. An industry official told USNI News that the longer-term aspiration is to produce modules and larger ship sections, such as bows and sterns. The official also said Anduril would not build entire submarines.
Where the shipyard will be built
The planned site is Tradepoint Atlantic at Sparrows Point in Baltimore County, Maryland. The location was formerly home to a Bethlehem Steel mill, which closed in 2012, according to The Associated Press. Maryland’s announcement describes the project as part of the region’s maritime heritage.
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How the investment differs from the Navy contract
Maryland’s October 6, 2026 announcement describes $3.7 billion as Anduril’s private capital investment in the facility. Separately, USNI News reports that the Navy awarded Anduril a contract worth up to $2.9 billion, contingent on demonstrated production outcomes. That is a conditional procurement contract, not an unconditional grant or a guaranteed cash contribution toward construction.
| Figure | What it represents | Qualification |
|---|---|---|
| $3.7 billion | Anduril’s planned private capital investment, according to the Maryland Department of Commerce | Announced in 2026; it is distinct from the Navy contract. Maryland Department of Commerce |
| Up to $2.9 billion | Navy contract reported by USNI News | Payment is contingent on demonstrated production outcomes; it is not described as an unconditional construction grant. USNI News |
Public support and the reported 40% stake
Maryland says the state and Baltimore County have committed to match up to 13% of the anticipated private investment through existing incentive programs and new appropriations. Those appropriations still require approval by the Maryland General Assembly and Baltimore County Council. The state announcement does not describe this as a completed ownership stake.
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Separately, AP reported that President Donald Trump said taxpayers would receive a 40% stake in the shipyard. The available reports do not explain how that statement relates to Maryland’s description of potential incentive matching. The 40% figure should therefore be understood as Trump’s attributed statement, not a settled ownership structure.
When production could begin
USNI News reports that Arsenal-2 in Maryland is expected to be ready for production in 2030. Anduril plans to begin production earlier at its Costa Mesa, California, facility, two years before the Maryland site is expected to be ready. The company has started building torpedo-tube prototypes in Costa Mesa, according to the report. These are announced plans and expectations, not evidence that production has already begun at the Maryland shipyard.
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Projected jobs and economic impact
Maryland projects more than 3,100 permanent direct jobs at the facility and more than 14,000 jobs supported overall. The state also estimates annual economic output above $2 billion and annual wages of $312 million. These are projections from the Maryland Department of Commerce, not achieved employment or measured economic results. Maryland Department of Commerce
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