Anduril Arsenal-2 Submarine Component Shipyard, Sparrows Point, Maryland

Anduril Arsenal-2 is a planned shipyard of more than 2 million square feet at Tradepoint Atlantic in Sparrows Point, Maryland, where Anduril Industries wants to build components and large assemblies for the Navy’s Virginia-class submarines. The project was announced Oct. 6, 2026, at a Baltimore County event with President Trump and Gov. Wes Moore. The headline number is $6.6 billion: $3.7 billion of Anduril’s own capital plus a Navy contract worth up to $2.9 billion.

The site carries history. Tradepoint Atlantic is the redevelopment of the former Bethlehem Steel mill on the Patapsco River, and Arsenal-2 would take 187 acres of it.

Project Scope

Anduril isn’t building submarines. Electric Boat and Newport News Shipbuilding keep final assembly. Arsenal-2’s job is to feed them parts, starting with items like torpedo tubes, moving to larger modules and eventually, the company says, full ship sections. Anduril plans to run fabrication, outfitting, material handling, inspection and documentation through its own ArsenalOS software.

The schedule is soft. Permitting and site preparation are supposed to start right away, but vertical construction waits on approvals, and initial operations are targeted for 2030. No general contractor, architect or engineer has been named. Anduril already has a 160,000-square-foot facility in Orange County, California, working on Virginia-class components, which it describes as a roughly two-year head start on processes before Maryland comes online.

The Navy money isn’t a construction grant. Payments are tied to demonstrated production outcomes, and officials said funding will flow mainly in fiscal 2028 and later through multiyear budgeting.

Why It Matters

The Virginia-class program has been running behind its two-boats-a-year goal for years, and the primes have said publicly that supplier capacity is a big part of the problem. A new large-scale component source on the East Coast goes straight at that. CEO Brian Schimpf put it plainly: the country needs “substantially more places where submarine components can be built.”

The skepticism writes itself, though. Anduril has never built hull-grade naval hardware at scale, and Schimpf admitted the company’s first answer to the Navy was no. The public incentive package is also unfinished. Maryland and Baltimore County say they’ll match up to 13% of Anduril’s private investment, but parts of that need General Assembly and County Council approval, and officials haven’t released a dollar figure.

For contractors, this is one of the largest heavy industrial programs on the Mid-Atlantic horizon. Moore called it the biggest private investment and job creator Maryland has seen in more than a decade, with Anduril projecting about 3,100 direct jobs by 2034. The procurement picture should get clearer once permitting moves.

Project Team & Details