Anduril Invests $3.7 Billion in Plant to Expand Virginia-Class Submarine Production

American company Anduril will build the Arsenal-2 shipyard to manufacture components and large structural sections for Virginia-class nuclear-powered submarines.

The company announced the project on October 6.

Anduril is investing $3.7 billion in private capital in the project. At the same time, the U.S. Navy awarded the company a contract worth up to $2.9 billion, with payments tied to production results. Thus, the total announced funding amounts to up to $6.6 billion.

Arsenal-2 will supply components and large structural sections to General Dynamics Electric Boat and Newport News Shipbuilding, which carry out the final assembly of Virginia-class submarines.

The shipyard will be located within the Tradepoint Atlantic industrial facility in Sparrows Point, Baltimore County, Maryland. The production facilities will cover more than 186,000 square meters, while the entire site will span approximately 76 hectares.

The facility is scheduled to begin operations in 2030, followed by a gradual production ramp-up. According to Anduril, the project will create 3,100 jobs directly at the facility and support more than 11,000 additional jobs in related industries.

The shipyard will use a dry dock about 366 meters long, along with road and rail connections to transport large structural sections. The production buildings and manufacturing lines are being designed to allow for reconfiguration to meet evolving U.S. Navy requirements.

Production at Arsenal-2 will be managed using Anduril’s ArsenalOS software platform. It will integrate manufacturing operations, material handling, quality control, and documentation, while giving workers real-time visibility into production progress.

Meanwhile, Anduril is developing a separate facility of about 14,900 square meters in Orange County, California. Before Arsenal-2 becomes operational, this facility will be used to test and refine manufacturing processes, train workers, and produce components for Virginia-class submarines, including torpedo launchers.

According to Anduril, the new facilities will help accelerate submarine production for the U.S. Navy and support the United States’ commitments under the AUKUS partnership.

Militarnyi previously reported on Austal USA’s expansion of its facilities to support the construction of Virginia- and Columbia-class submarines. The $450 million agreement includes developing infrastructure at the company’s shipyard in Mobile, Alabama.

Virginia-class submarines are U.S. Navy nuclear-powered attack submarines designed to engage enemy surface ships and submarines, as well as strike land targets. They are equipped with four 533 mm torpedo tubes and Tomahawk cruise missiles.