Trump announces largest US submarine shipyard since WWII, spanning 2M square feet

President Donald Trump on Tuesday announced a $6.6 billion U.S. submarine manufacturing push centered on a new 2-million-square-foot shipyard in Maryland that will produce components and large assemblies for Virginia-class nuclear attack submarines.

Defense technology company Anduril Industries will invest $3.7 billion of private capital in the Arsenal-2 shipyard at Sparrows Point near Baltimore. Separately, the U.S. Navy has awarded Anduril a contract worth up to $2.9 billion, with payments tied to production results.

Trump, speaking at the site Tuesday, called Arsenal-2 the largest new U.S. shipyard since World War II. He said the facility would support production of next-generation submarines, including autonomous submarines, as well as torpedo tubes and components for Virginia-class attack submarines.

The project is expected to create 3,100 direct jobs and support more than 11,000 additional jobs. Initial operations are scheduled to begin in 2030, with production increasing afterward, according to Anduril.

Software runs shipyard production

Arsenal-2 will cover more than 2 million square feet, roughly the area of 40 football fields, across a 187-acre site. It will include high-bay assembly halls, fabrication areas, reconfigurable production lines, and an existing 1,200-foot graving dock for handling large maritime structures.

Anduril said the facility will manufacture complex components and large assemblies for Virginia-class submarines before sending them to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding for final assembly.

The additional production source is intended to allow more submarine work to take place simultaneously rather than concentrating manufacturing at the Navy’s existing submarine builders.

Anduril plans to manage the facility through ArsenalOS, its industrial software platform. The system will connect fabrication, material movement, assembly, inspections, and documentation while providing workers and managers with real-time information about production.

Digital work instructions, sensors, embedded quality controls and automation will also support welders, electricians, pipefitters, inspectors and other workers, according to the company.

California plant starts earlier

Before the Maryland shipyard opens, Anduril plans to begin manufacturing Virginia-class components at a new 160,000-square-foot facility in Orange County, California.

The California plant will give the company about a two-year head start to test manufacturing methods, train workers, and establish production and quality-control systems. It will make test hardware and maritime components, including torpedo tubes.

Anduril said the lessons from that facility will then be transferred to Arsenal-2 as the Maryland operation scales.

Virginia-class submarines are nuclear-powered attack submarines used for missions including anti-submarine warfare, surveillance, and land strikes. They can travel at speeds exceeding 25 knots.

The new capacity comes as the Navy seeks to increase submarine production while also meeting U.S. commitments under the AUKUS security partnership. Anduril said closing the gap between current production and Navy requirements will require additional suppliers, infrastructure and manufacturing capacity.

Arsenal-2 will be built at Sparrows Point, once home to a major steelmaking and shipbuilding complex. Maryland officials said the project is expected to generate more than $2 billion in annual economic output, including about $312 million in wages each year.