Trump Announces $6.6 Billion Submarine Manufacturing Project in Baltimore County
President Trump is announcing a $6.6 billion public-private investment with defense technology company Anduril Industries to build a massive new manufacturing facility in Baltimore County that will produce critical components for the U.S. Navy’s Virginia-class submarines.
The project, known as Arsenal-2, will be built at Tradepoint Atlantic in Sparrows Point, the former home of the Bethlehem Steel complex. The development will include more than 2 million square feet of advanced manufacturing space on approximately 187 acres.
Anduril plans to invest $3.7 billion of its own capital in the project, while the Navy has awarded the company a production contract worth up to $2.9 billion. Together, the private investment and potential Navy contract bring the total value of the initiative to $6.6 billion.
The facility is expected to create approximately 3,100 direct jobs while supporting more than 11,000 additional jobs throughout the economy. Officials estimate the project could generate roughly $2 billion in annual economic activity once fully operational.
Arsenal-2 will manufacture critical components and large assemblies for Virginia-class nuclear-powered attack submarines. The facility is expected to initially focus on components such as torpedo tubes before eventually expanding into larger submarine modules and ship sections.
The finished components will be delivered to General Dynamics Electric Boat and HII’s Newport News Shipbuilding, which will continue performing final assembly, testing and delivery of the submarines. The additional production capacity is intended to address bottlenecks that have prevented the Navy’s submarine industrial base from consistently meeting production goals.
Anduril plans to use advanced automation and its ArsenalOS industrial software platform throughout the facility. The system is designed to connect manufacturing workflows, inspections, material movement and production requirements while giving workers and managers real-time information about the manufacturing process.
The company expects permitting and site preparation to begin immediately, with construction starting after the necessary approvals are secured. Initial operations are scheduled to begin in 2030 before production gradually expands in the following years.
The project is part of the Trump administration’s broader effort to rebuild America’s shipbuilding and defense manufacturing capacity. The administration has made expanding submarine production a priority as the United States works to strengthen its maritime capabilities amid increasing military and technological competition with China.
Virginia-class submarines are among the Navy’s most advanced nuclear-powered attack submarines and are designed for missions including anti-submarine warfare, intelligence gathering, surveillance and land attacks. The Navy has sought to reach a production rate of two Virginia-class submarines per year but has struggled with workforce shortages and supply-chain constraints.
Anduril is already establishing a facility in California to begin producing some submarine components before the Maryland complex becomes operational. The company intends to use that work to expand production capacity while preparing for the larger Arsenal-2 operation.
Trump is traveling to Sparrows Point to highlight the investment alongside Maryland officials, Anduril executives and senior defense officials. The project represents one of the largest manufacturing investments announced in Maryland in years and will return large-scale maritime manufacturing to a site that played a major role in America’s steel and shipbuilding history.