BALTIMORE COUNTY, Md. — President Donald J. Trump announced Arsenal-2, a new software-defined shipyard that Anduril Industries will build at Tradepoint Atlantic in Baltimore County, Maryland, as part of a $6.6 billion public-private investment to expand the U.S. submarine industrial base.
Anduril will invest $3.7 billion in private capital, while the U.S. Navy has awarded the company a contract worth up to $2.9 billion. Payments under the contract are tied to demonstrated production results, with the arrangement designed to place execution risk primarily on the company.
Arsenal-2 will manufacture critical components and large-scale assemblies for the Navy’s Virginia-class attack submarines. The submarines are currently built by General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding. Components produced at Arsenal-2 will be transported to those shipyards for final integration, adding manufacturing capacity to support U.S. fleet requirements and AUKUS commitments.
187-Acre Facility at Sparrows Point
The facility will be built on a 187-acre site within the historic Sparrows Point complex and will cover more than 2 million square feet, roughly the size of 40 football fields. It will include a 1,200-foot graving dock, high-bay assembly halls, fabrication and testing areas, and road, rail and maritime access.
Its layout is designed to reduce the distance between fabrication, assembly, testing and integration areas. Production will be managed through Anduril’s ArsenalOS industrial software platform, which will connect workflows, outfitting sequences, material movement and inspection processes while providing digital work instructions, real-time visibility and embedded quality controls.
The Sparrows Point site also has a long maritime history. Baltimore shipyards produced the first Liberty Ship during World War II, while Sparrows Point was previously known as the “Patriarch of U.S. Tanker Builders.”
Jobs and Production Timeline
Arsenal-2 is expected to create 3,100 direct, permanent jobs and support more than 11,000 indirect jobs. The facility is projected to generate $2 billion in annual economic output, including an estimated $312 million in annual wages.
Permitting and site preparation are beginning immediately, with construction starting after final approvals. Initial operations are targeted for 2030, followed by a gradual production increase as the workforce and infrastructure expand.
California Facility to Prepare Production
Anduril is also establishing a 160,000-square-foot facility in Orange County, California. It will provide a two-year operational head start to validate manufacturing methods, train workers and begin SUBSAFE-qualified production of maritime components, including torpedo tubes.
The California facility will continue supporting broader maritime manufacturing after Arsenal-2 becomes operational. The phased approach follows the strategy used for Arsenal-1 in Ohio.
Arsenal-2 will ultimately join Anduril’s distributed production network, which includes the Columbus, Ohio facility; a maritime factory at Quonset Point, Rhode Island; a Ghost Shark factory in Sydney, Australia; a rocket motor facility in McHenry, Mississippi; and more than 15 additional production sites.
The project is intended to provide an additional manufacturing source for Virginia-class submarine components and assemblies while increasing capacity across the U.S. submarine industrial base.
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