Anduril shipyard plans in Baltimore County are set to become one of Maryland’s largest industrial projects in decades. President Donald Trump is due at Sparrows Point on Tuesday to announce a submarine-production investment worth up to $6.6 billion, as reported by Baltimore Chronicle.
Reporting from The Washington Sun and WorkBoat confirms the scale of the project. Anduril will invest $3.7 billion of private capital. The U.S. Navy has also awarded a production contract worth up to $2.9 billion.
Arsenal-2 will rise at Sparrows Point
The new facility, called Arsenal-2, will occupy more than 2 million square feet at Tradepoint Atlantic. It will stand on the former Bethlehem Steel property.
Anduril expects hiring to begin in 2029. Initial operations are targeted for 2030. Permitting and site preparation are expected to start first.
The project is expected to create:
- about 3,100 direct permanent jobs;
- more than 11,000 indirect jobs;
- thousands of additional construction and supply-chain positions.
Maryland and Baltimore County may provide incentives worth up to 13% of Anduril’s anticipated investment. Some funding would still require legislative approval.
The development gives Sparrows Point a new industrial role after the Bethlehem Steel mill closed in 2012. It also places Baltimore County directly inside the Navy’s submarine supply chain.
What Anduril will build for Virginia-class submarines
Anduril will not assemble complete nuclear submarines in Maryland. Instead, Arsenal-2 will manufacture components and increasingly large sections.
| Production stage | Planned work |
|---|---|
| Initial phase | Torpedo tubes and critical components |
| Expansion | Larger submarine assemblies |
| Long-term goal | Bow, stern and other major sections |
The completed sections could travel by water to General Dynamics Electric Boat in Connecticut and HII’s Newport News Shipbuilding in Virginia. Those companies will retain responsibility for final submarine assembly and delivery.
Torpedo tubes are among the components currently constraining Virginia-class production. Anduril plans to prototype them first before moving into more complex structures.
Why the Navy wants new production capacity
The Navy has struggled to reach its desired Virginia-class construction rate. Industry output has recently remained below the traditional target of 2 submarines per year.
Arsenal-2 is designed to add capacity rather than replace existing shipyards. Anduril says software, automation and digital manufacturing will divide complex work into smaller production tasks.
That approach could also widen the available workforce. Employees would not necessarily need years of traditional shipbuilding experience before entering production roles.
For Baltimore County, the project links a historic industrial site to one of the Pentagon’s most pressing manufacturing problems: building submarines faster without relying solely on 2 established nuclear shipyards.
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