Trump announces $2.9B Navy submarine contract for Anduril Industries shipyard

President Donald Trump announced a new $6.6 billion shipbuilding project in Baltimore, where defense firm Anduril Industries will utilize a $2.9 billion Navy contract to manufacture nuclear-powered submarine components.

The project, located at the Sparrows Point shipyard, involves a $3.7 billion private investment from Anduril alongside the multi-billion dollar government contract. The Guardian reported that the facility, named "Arsenal Two," is expected to produce torpedo tubes and hull sections for Virginia-class attack submarines. While Anduril is known for autonomous drones, the outlet noted this is the firm's first known role in manufacturing crewed submarines, with production not expected to begin until 2030.

According to Al Jazeera, the facility is projected to create 3,100 jobs and support over 11,000 indirect roles. During the announcement, President Trump stated that U.S. taxpayers would "receive a 40% stake" in the shipyard, though The Guardian noted it remains unclear if this refers to an equity share in the company. Acting Navy Secretary Hung Cao described the move as a partnership that "breaks through bureaucratic red tape."

The contract comes shortly after Anduril co-founder Palmer Luckey was appointed to "Project Meridian," a Pentagon initiative studying future warfare. International reported that Luckey is joined in this group by Elon Musk and Newt Gingrich. While the appointment has raised questions about the influence of defense tech firms, DoD Chief Technology Officer Emil Michael told CNBC that the mix of industry and military leaders is appropriate for preparing for future conflicts.

International also detailed that while the main 2 million-square-foot facility will be in Maryland, some components will be manufactured at a smaller site in Orange County, California. Anduril President Chris Brose stated the deal is intended to help meet national requirements for increased submarine production. To facilitate the event, The Guardian reported that the Navy rerouted the USS Billings from its scheduled return to Florida so sailors could attend the rally.

Background

Anduril Industries was founded in 2017 by Palmer Luckey and specializes in autonomous systems and software. The Pentagon's push to accelerate shipbuilding follows recent regional conflicts, such as the war on Iran, which have impacted global maritime security.