> ## Content Index > Fetch the complete content index at: https://www.warfaredecoded.com/llms.txt > Use this file to discover other available public pages before exploring further. # Anduril, US Navy invests $6.6 billion to boost submarine parts production - URL: https://www.warfaredecoded.com/anduril-us-navy-invests-6-6-billion-to-boost-submarine-parts-production/ - Published: 2026-10-07T14:30:34.000Z - Updated: 2026-10-07T14:30:34.000Z - Author: Kevin Macmellon Anduril Industries plans to invest **$3.7 billion** to build a new shipyard in Maryland dedicated to producing components for U.S. Navy Virginia-class submarines. The Navy is separately awarding Anduril a contract worth **up to $2.9 billion**, bringing the combined investment and contract value to as much as **$6.6 billion**. [Reuters](https://www.reuters.com/business/aerospace-defense/anduril-us-navy-invest-66-bln-boost-submarine-parts-production-2026-10-06/?utm%5Fsource=chatgpt.com) The project is part of a broader effort to expand the U.S. submarine industrial base and increase manufacturing capacity for critical naval components. ## Anduril Plans New Arsenal-2 Shipyard The new facility, called **Arsenal-2**, will be located in Baltimore County, Maryland. Anduril expects the facility to become operational toward the end of the decade. The company expects the Maryland operation to create approximately **3,100 direct jobs** and support more than **11,000 indirect jobs** once established. [Reuters](https://www.reuters.com/business/aerospace-defense/anduril-us-navy-invest-66-bln-boost-submarine-parts-production-2026-10-06/?utm%5Fsource=chatgpt.com) The project represents a major expansion of Anduril's manufacturing footprint beyond its traditional focus on autonomous systems, drones and military software. ## Navy Contract Could Reach $2.9 Billion Alongside its private investment, Anduril will receive a U.S. Navy contract worth up to **$2.9 billion** to manufacture submarine components. According to Reuters, payments under the arrangement will be tied to production outcomes, with Anduril assuming much of the execution risk associated with building and operating the new manufacturing capability. [Reuters](https://www.reuters.com/business/aerospace-defense/anduril-us-navy-invest-66-bln-boost-submarine-parts-production-2026-10-06/?utm%5Fsource=chatgpt.com) The structure is intended to connect government spending more directly to the delivery of manufactured components rather than simply financing the construction of a new facility. ## Production Will Focus on Virginia-Class Submarines Anduril is already developing a manufacturing facility in California that produces critical Virginia-class submarine components, including **torpedo tubes**. The company plans to use Arsenal-2 to expand into larger components and assemblies, potentially including **larger submarine modules and hull sections** as the Baltimore facility becomes operational. [Reuters](https://www.reuters.com/business/aerospace-defense/anduril-us-navy-invest-66-bln-boost-submarine-parts-production-2026-10-06/?utm%5Fsource=chatgpt.com) The Virginia class is the U.S. Navy's latest generation of nuclear-powered attack submarines. The boats are designed for missions including anti-submarine warfare, intelligence and surveillance, and land-attack operations. ![](https://storage.ghost.io/c/1e/44/1e448b0d-1e44-4bbb-bad8-c4da165a2995/content/images/2026/10/Anduril-Logo-on-White.png) Image credit: Anduril Industries, Inc. / Wikimedia Commons. Public Domain. Image resized and enhanced by WarfareDecoded ## U.S. Submarine Industry Faces Capacity Challenges The investment comes as the U.S. government works to strengthen the industrial base supporting submarine construction. The Navy's Submarine Industrial Base program identifies constrained supplier capacity and limited manufacturing availability as important challenges for submarine production. The program is working to expand the supplier network and increase production capacity across the industrial base. [U.S. Department of the Navy](https://www.secnav.navy.mil/rda/sib/Pages/Supply.aspx?utm%5Fsource=chatgpt.com) Adding new suppliers and manufacturing facilities could provide additional capacity for components that are required by the country's nuclear-powered submarine programs. ## Anduril Expands Beyond Autonomous Systems Anduril was founded in 2017 and became widely known for autonomous military systems, drones and command-and-control software. The company has increasingly expanded into maritime and undersea technologies. The new shipyard marks another step in that expansion, placing Anduril more directly into the manufacturing supply chain supporting a major U.S. Navy platform. [Reuters](https://www.reuters.com/business/aerospace-defense/anduril-us-navy-invest-66-bln-boost-submarine-parts-production-2026-10-06/?utm%5Fsource=chatgpt.com) The company also operates **Arsenal-1**, a large manufacturing facility in Ohio focused on autonomous combat systems. [Reuters](https://www.reuters.com/business/aerospace-defense/anduril-us-navy-invest-66-bln-boost-submarine-parts-production-2026-10-06/?utm%5Fsource=chatgpt.com) ## Why the $6.6 Billion Investment Matters The combined $6.6 billion initiative illustrates how the U.S. is attempting to increase defense manufacturing capacity by combining private-sector investment with government procurement. For the Navy, additional suppliers could help reduce pressure on existing submarine manufacturers and provide greater capacity for components needed to maintain Virginia-class production. For Anduril, the project represents a significant move from developing defense technology into operating large-scale industrial infrastructure. Author: Kevin Macmellon