On Tuesday, President Donald J. Trump and Secretary of War Pete Hegseth announced the development of a new shipyard, to be called “Arsenal-2,” during a ceremony at the future site in Sparrows Point, MD. American defense technology company Anduril Industries, the developer of advanced autonomous systems, hardware, and artificial intelligence software, will make a $3.7 billion private capital investment in a new shipyard.
The United States Navy has already awarded Anduril a contract valued at up to $2.9 billion, with payments tied directly to “demonstrated production outcomes.”
The software-defined facility, dubbed the Arsenal-2, will manufacture critical components for the United States Navy’s Virginia-class fast attack submarines.
“We’re officially launching the construction of the largest new shipyard in the United States,” Trump said, adding, “Since World War II, there’s been nothing like what we’re doing today.”
Not Just Building Submarines
The future two-million-square-foot shipyard is expected to support over 14,000 jobs, including more than 3,100 new permanent jobs. Overall, this new project will become the largest single private investment in MD and the largest job creator in the state in over a decade.
Arsenal-2 will be located at the Tradepoint Atlantic within the Sparrows Point complex in Baltimore County.
“This massive new project will deliver the largest private investment and create the most jobs in Maryland in over a decade – driving billions of dollars in economic activity that will boost Maryland families not just in Baltimore County, but throughout the state,” said MD Gov. Wes Moore. “With this facility, thousands of Marylanders will have new pathways to work, wages, and wealth through advanced training and high-skilled maritime manufacturing jobs. We thank Anduril for choosing Maryland, and we’re ready to build the future of the aerospace and defense economy together.”
Ready to Build
Anduril announced that permitting and site preparation will begin immediately, with construction commencing as soon as the necessary approvals are in place. Initial operations are expected to begin in 2030. Once operational, Arsenal-2 will support the country’s submarine industrial base, building components for General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding, the two prime contractors on the U.S. Navy’s Virginia-class submarines.
Arsenal-2 will produce complex components and large-scale assemblies for the nuclear-powered submarines, and then deliver them to Electric Boat and Newport News Shipbuilding for final assembly. This could help address ongoing delays in the program that has slowed delivery of the much-needed vessels to the U.S. Navy.
“This is about putting more food on the table and being able to meet requirements that our country has to produce more submarines,” Chris Brose, Anduril’s president and chief strategy officer, said during a press briefing on Tuesday.
Historied Location
The Sparrows Point complex already has a rich maritime history. It produced the first Liberty Ships for the U.S. Navy during World War II. Arsenal-2 will take advantage of existing road, rail, and maritime infrastructure, connecting the facility to supplies across the nation and to the country’s two primary submarine builders.
“Sparrows Point helped build the fleet that won World War II,” added Brian Schimpf, cofounder and CEO of Anduril, in a media release. “With Arsenal-2, Anduril will return large-scale shipbuilding to a site that can once again define American naval power. This facility will make Baltimore County a critical part of America’s submarine industrial base, adding the production capacity that the Navy needs to meet its Virginia-class requirements. Maryland offers the workforce, the infrastructure, and the industrial heritage this mission demands. We’re grateful to Governor Moore and state and local leaders for their partnership in making this investment possible.”
The project is slated to drive upwards of $2 billion in annual economic output, including an estimated $312 million in wages each year.
Arsenal-2 promises to be more than a shipyard. It will be a modern shipbuilding system built around software-defined production and advanced manufacturing, with a layout optimized for increased production by reducing the distance between fabrication, assembly, testing, and integration areas to eliminate the staging bottlenecks that slow conventional yards.
The project has bipartisan support.
“This $3.7 billion investment is an indication once again of the strength of Baltimore, and the impact Baltimore has on our entire state and country,” said Senator Angela Alsobrook (D-Md.). “Maryland continues to be at the forefront of technology, innovation, and advancing our national security goals. This investment will be a huge economic boost to our region – adding over 13,000 jobs – and it will support the Navy’s efforts to increase production and advance its submarine technology.”
