Anduril Wins $2.9B Navy Contract for Virginia-class Submarine Components

The U.S. Navy has awarded Anduril a contract worth up to $2.9 billion to manufacture critical components for Virginia-class submarines, with payments tied directly to demonstrated production outcomes. The contract supports the construction of Arsenal-2, a new software-defined shipyard in Maryland, part of a combined $6.6 billion investment by the Navy and Anduril to expand the submarine industrial base.

Virginia-class submarines, the Navy's latest generation of nuclear-powered attack boats, are built by General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding. They are designed for anti-submarine warfare, land-attack strikes, and surveillance missions. Anduril's president and chief strategy officer, Chris Brose, leads the effort.

Arsenal-2 Shipyard to be Built at Sparrows Point in Maryland

The Arsenal-2 facility will be constructed on a 187-acre site at Tradepoint Atlantic in Baltimore County, Maryland, within the historic Sparrows Point complex. The shipyard will feature a functional 1,200-foot graving dock and cover more than 2 million square feet of production space, an area roughly equivalent to 40 football fields. The Sparrows Point Shipyard stopped new ship construction in 1986 and closed completely in 2003.

Project to Drive Jobs, Economic Output, and Submarine Production Capacity

The project is expected to create more than 3,100 new direct jobs and support over 11,000 indirect jobs. It will drive an estimated $2 billion in annual economic output, with about $312 million in wages paid each year. The White House stated the yard will add about 9 million labor hours of production capacity annually, representing a 15 percent increase for the Virginia-class submarine program.

Anduril’s ArsenalOS and Distributed Industrial Network Enable Scalable Defense Manufacturing

Arsenal-2 will use Anduril’s industrial software platform, ArsenalOS, as its digital backbone. The platform will integrate fabrication workflows, outfitting sequences, material movement, inspection protocols, and documentation requirements. Digital work instructions, embedded quality controls, modern sensing, and automation will support skilled trades.

This facility is part of a broader network of Anduril production sites designed to rapidly scale defense production. The network includes:

Anduril operates more than 15 additional production sites, forming a distributed industrial network.

Facility Supports Parallel Construction and AUKUS Readiness

Arsenal-2 will manufacture components and large-scale blocks for Virginia-class submarines, which will be transferred to General Dynamics Electric Boat and HII’s Newport News Shipbuilding for final assembly. This parallel construction approach will increase the overall capacity available to the Virginia-class program, helping to meet both domestic fleet requirements and AUKUS commitments. Anduril's $3.7 billion private capital investment in the project is the largest private investment in Maryland in over a decade. The State of Maryland and Baltimore County will match up to 13 percent of that investment, with an incentive package that includes capital support for a Center of Excellence facility for workforce training. The state will also pursue a Maritime Prosperity Zone federal designation for the region.

An Anduril press release said, "Under President Trump’s leadership, the U.S." To build operational head start before Arsenal-2 opens, Anduril is already manufacturing critical components at a new 160,000-square-foot facility in Orange County, California. Production at Arsenal-2 is targeted to begin by 2030, with initial operations expected to come online that year and scaling progressively as workforce, supplier base, infrastructure, and manufacturing throughput are built.