Anduril Industries announced it will spend $3.7bn to build a new shipyard in Maryland that will produce submarine components for the United States Navy. The company confirmed on Tuesday that it will receive a $2.9bn contract from the Navy to manufacture torpedo tubes and hull sections for Virginia‑class fast‑attack submarines. The facility, called Arsenal‑2, is slated to create 3,100 direct jobs and support more than 11,000 indirect positions.

The announcement came as President Donald Trump prepared to unveil the project and a broader naval shipyard expansion in Baltimore on Tuesday afternoon. Anduril, headquartered in California, specializes in uncrewed underwater vehicles, drones and related software. Its co‑founder Palmer Luckey is leading a Pentagon initiative called Project Meridian alongside Elon Musk, the technology entrepreneur who also advises the former president.

Project Meridian, disclosed during Defense Secretary Pete Hegseth’s State of the Force address, is a 120‑day study aimed at shaping the future of warfare, with an emphasis on autonomous systems, artificial intelligence and maritime capabilities. The Maryland plant will focus on component production rather than developing new drone platforms, according to Anduril President Chris Brose.

The Navy currently operates 26 Virginia‑class submarines, with two additional vessels scheduled for delivery in 2027. Official data show that U.S. shipyards have been delivering only 1.1 to 1.2 submarines per year, well below the Pentagon’s goal of two new boats annually, a shortfall attributed to supply‑chain disruptions and labor shortages. The new Maryland facility is intended to help close that gap and strengthen the United States’ maritime defence posture amid ongoing regional tensions involving Iran and the broader strategic competition for control of global oil traffic.