Arsenal-2 submarine construction project will create a 2-million-square-foot shipyard at Sparrows Point, Baltimore County, Maryland. The $3.7 billion facility will manufacture critical components for Virginia-class nuclear-powered attack submarines. Additionally, the wider initiative carries a $6.6 billion commitment involving Anduril Industries and the US Navy.
The project marks a major expansion of submarine manufacturing capacity in the United States. It also represents Anduril’s move into large-scale submarine component production. Construction will revive heavy industrial activity at the former Bethlehem Steel site.
Arsenal-2 submarine construction project expands Baltimore shipyard capacity
The shipyard will rise within the Tradepoint Atlantic complex at Sparrows Point. Therefore, the development will use existing maritime, rail, road and industrial infrastructure.
Anduril plans to invest $3.7 billion in capital for the facility and its workforce. Meanwhile, the Navy has awarded the company a contract worth up to $2.9 billion. Together, those commitments bring the announced investment to $6.6 billion.
The facility will initially manufacture components including torpedo tubes and spherical air flasks. Eventually, Anduril intends to produce larger submarine assemblies and complete ship sections. These could include bows and sterns as production capabilities expand.
The components will move to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding. Those shipyards will integrate the components into Virginia-class submarines. Consequently, Arsenal-2 will expand production capacity without replacing the existing prime shipyards.
Arsenal-2 submarine construction project targets industrial bottlenecks
The development responds to persistent delays across the Virginia-class submarine production programme. Current production has averaged about 1.1 to 1.2 submarines annually since 2022. However, the Navy aims to reach two submarines annually by 2032.
Therefore, the Baltimore facility could add substantial manufacturing capacity to the submarine supply chain. A senior administration official estimated 9 million additional labour hours annually. That figure could represent approximately a 15% capacity increase for Virginia-class production.
The shipyard will feature high-bay assembly halls and adjacent fabrication areas. It will also include reconfigurable production lines and a 1,200-foot graving dock. Multimodal transport connections will support movement of large components around the facility.
Furthermore, Anduril will deploy its ArsenalOS industrial software across production systems. The platform will connect fabrication, assembly, material movement, inspections and documentation. Automation and digital work instructions will support skilled trades across the manufacturing process.
Construction will begin after necessary approvals and site preparation activities. Initial operations are expected to start in 2030, with production increasing progressively thereafter.
Before that, Anduril plans a 160,000-square-foot facility in Orange County, California. That facility will develop production methods and qualify manufacturing processes for submarine components. It will also train workers before Arsenal-2 reaches full operation.
The Baltimore development will create more than 3,100 direct jobs. Additionally, it is expected to support more than 11,000 indirect jobs. The project could generate approximately $2 billion in annual economic output and $312 million in annual wages.
Baltimore’s Arsenal-2 submarine construction project adds another major US industrial development to a wider wave of federally backed infrastructure investment. The $3.7 billion shipyard at Sparrows Point will expand submarine manufacturing capacity while reviving a former steelmaking site. Its development also complements major federal construction efforts elsewhere, including the $52 billion NY-NJ waterway project designed to strengthen flood protection across the New York Harbor region.
Project Fact Sheet
Name: Arsenal-2.
Type: Software-defined shipyard and submarine component manufacturing facility.
Location: Tradepoint Atlantic, Sparrows Point, Baltimore County, Maryland, United States.
Private capital investment: $3.7 billion.
Total announced investment: $6.6 billion.
US Navy contract: Up to $2.9 billion.
Manufacturing space: Approximately 2 million square feet.
Expected operations: 2030.
Direct employment: More than 3,100 jobs.
Indirect employment: More than 11,000 jobs.
Annual economic output: Approximately $2 billion.
Estimated annual wages: Approximately $312 million.
Initial products: Virginia-class submarine components, including torpedo tubes and spherical air flasks.
Future production: Larger submarine assemblies, including potential bows, sterns and full ship sections.
Infrastructure: High-bay assembly halls, fabrication areas and reconfigurable production lines.
Marine infrastructure: 1,200-foot graving dock.
Digital systems: ArsenalOS industrial production platform.
Site infrastructure: Deep-water port, rail, road and interstate connections.
Construction status: Site preparation and permitting will begin before construction.
Target: Increase capacity across the US Virginia-class submarine industrial base.
Project Team
Developer and private investor: Anduril Industries.
Shipyard operator and manufacturer: Anduril Industries.
Contracting authority: US Navy.
Site host and industrial property partner: Tradepoint Atlantic.
Final submarine builder: General Dynamics Electric Boat.
Final submarine builder: Huntington Ingalls Industries’ Newport News Shipbuilding.
State economic development partner: Maryland Department of Commerce.
State government partner: State of Maryland.
Local government partner: Baltimore County.
Workforce development partner: State of Maryland through a planned Center of Excellence.
Industrial technology provider: Anduril Industries through ArsenalOS.
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