A software-defined shipyard, backed by a $3.7 billion investment from Anduril Industries, will significantly enhance the US Navy’s efforts to increase production of attack submarines.
Added to a US Navy contract of up to $2.8 billion for the manufacture of critical components for Virginia-class SSNs, a total of $6.6 billion is being committed to the establishment of a new shipyard, with the majority of the risk falling on private enterprise, not the US taxpayer. Building Virginia-class boats for domestic and AUKUS commitments requires significant growth across the manufacturing enterprise, already one of the most complex in America. Arsenal-2 will build critical components for the submarines and deliver to the manufacturing enterprise, adding substantial capacity to the overall programme.
To be built at Tradepoint Atlantic, within the Sparrows Point complex in Baltimore County, Maryland, Arsenal-2 will create 3,100 direct jobs and support a further 11,000 indirectly, driving an annual economic output estimated at $2 billion. Initial operations are expected to commence in 2030, returning shipbuilding to a site that once helped define American naval power. The 2 million square feet facility will be purpose-built on a 187-acre site for high-volume, high-precision production of undersea naval capabilities, a 6 October company release states.
ArsenalOS, Anduril’s industrial software platform, will provide the digital backbone for both yard and production systems, connecting fabrication workflows, outfitting sequences, material movement, inspection protocols and documentation requirements in a single system. Digital work instructions, embedded quality controls, modern sensing and automation will support the workforce, making production requirements more visible and processes more consistent.
In parallel with Arsenal-2’s construction, Anduril is already standing up the manufacturing capabilities that will anchor operations at the new yard. Critical Virginia-class submarine components will also be manufactured at a new 160,000 square foot facility in Orange County, California, purpose-built to support key submarine construction processes and SUBSAFE-qualified production qualification efforts. The facility gives Anduril a two-year operational head start to develop and validate manufacturing methods, production workflows, and quality systems before Arsenal-2 comes online. It will support prototyping and production of Virginia-class test assets and critical maritime components, including torpedo tubes, while allowing the company to recruit and train the early workforce on the systems and standards that will ultimately scale at Arsenal-2. Once Arsenal-2 comes online, the Orange County facility will continue supporting broader maritime manufacturing efforts across Anduril’s industrial network. This is the same approach Anduril has used at Arsenal-1 in Ohio: building the workforce, processes, and production system ahead of full-scale operations.
Closing the gap between current Virginia-class output and the Navy’s requirement will require expansion across the submarine industrial base. By investing private capital in additional shipbuilding infrastructure, proving its production system years before Arsenal-2 opens, and accepting a contract structure tied to measurable outcomes, Anduril is adding capacity to an existing national enterprise and helping create the industrial scale required to increase Virginia-class production.
Main image: a rendering of the projected Arsenal-2 shipyard at Sparrows Point, MD. (Anduril Industries)
