Anduril Wins $2.9 Billion Navy Submarine Production Contract
Anduril is investing $3.7 billion to build a Maryland shipyard for Virginia-class submarine components after securing a $2.9 billion contract from the U.S. Navy.
Defense technology firm Anduril Industries secured a contract worth up to $2.9 billion from the U.S. Navy on October 6, 2026, to increase the production of Virginia-class nuclear-powered attack submarines. In tandem with the contract, the company is investing $3.7 billion to establish a 2 million-square-foot shipyard, named Arsenal-2, in Baltimore County, Maryland. The total value of the initiative is $6.6 billion.
The Arsenal-2 facility is expected to begin operations by 2030, creating approximately 3,100 direct jobs and supporting over 11,000 indirect jobs. Under the terms of the Navy contract, payments are tied to production outcomes, meaning Anduril assumes most of the execution risk. The company will also utilize a 160,000-square-foot facility in Orange County, California, to manufacture torpedo tubes and other components.
This expansion follows Anduril's establishment of a drone production facility in Ohio and coincides with the appointment of co-founder Palmer Luckey to Project Meridian, a Department of Defense task force. The move reflects a broader U.S. effort to expand arms production amid conflicts in Ukraine and the Middle East, while raising questions about the growing influence of defense tech firms in Washington as the Trump administration seeks to scale military shipbuilding.
