Anduril plans $3.7B submarine shipyard at Sparrows Point, bringing 3,100 jobs to Baltimore County

SPARROWS POINT, Md. — Anduril Industries plans to invest $3.7 billion to build a massive new shipyard at Tradepoint Atlantic in Sparrows Point, an investment expected to create thousands of jobs and expand production of Virginia-class submarines.

President Donald Trump and Maryland Gov. Wes Moore announced Arsenal-2 Tuesday. Anduril says the shipyard will create 3,100 direct jobs, support more than 14,000 indirect jobs and generate $2 billion in annual economic output in Maryland.

Arsenal-2 will manufacture complex components and large-scale assemblies for Virginia-class nuclear-powered attack submarines. The work is part of a U.S. Navy contract with Anduril worth up to $2.9 billion, with payments tied to production outcomes.

Anduril plans to start with critical components, including torpedo tubes, before eventually moving into larger submarine modules and sections. The company will not build complete submarines. Instead, the work will feed into General Dynamics Electric Boat and Newport News Shipbuilding for final assembly.

The Virginia-class program has struggled to meet the Navy's production needs. During a briefing Tuesday, a senior administration official said Arsenal-2 could eventually add about 9 million labor hours of production capacity each year, an estimated 15% increase.

The official said torpedo tubes are currently among the components limiting production of Virginia-class submarines already under construction. Anduril plans to begin with those components before eventually moving into larger submarine modules and sections.

The new shipyard will span more than 2 million square feet on 187 acres at Sparrows Point, roughly the size of 40 football fields. The site will include fabrication and assembly areas, production lines and a 1,200-foot graving dock.

Anduril says it plans to recruit workers from the Baltimore region, including recent high school graduates and people coming out of vocational programs, as well as workers with experience in industries such as aerospace and automotive manufacturing. The company says its model is designed to train people without years of previous shipbuilding experience.

The state's incentive package also includes support for a workforce training center at or near Tradepoint Atlantic.

Anduril says permitting and site preparation will begin immediately, with construction starting once it secures the necessary approvals. Initial operations are expected to begin in 2030, with production increasing over time.

The project would also bring large-scale shipbuilding back to Sparrows Point, the former home of Bethlehem Steel, and a site with deep ties to Baltimore's maritime and industrial history.

"Sparrows Point helped build the fleet that won World War II," Anduril CEO Brian Schimpf said. "With Arsenal-2, Anduril will return large-scale shipbuilding to a site that can once again define American naval power."

The project comes as the Trump administration pushes to expand the nation's shipbuilding capacity. Trump signed an executive order in April 2025 aimed at rebuilding the country's maritime industrial base, followed by an August presidential memorandum directing additional steps to strengthen Navy shipbuilding capacity and competition. The August memorandum explicitly says it builds on the 2025 executive order.

Maryland and Baltimore County have committed to match up to 13% of Anduril's anticipated private investment through existing incentive programs and proposed new funding. Any new appropriations would require approval from the Maryland General Assembly and Baltimore County Council.

President Trump is scheduled to be in Baltimore Tuesday afternoon for the official announcement.

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