$6.6bn U.S. Shipyard to Build Subs Faster Than Navy Can Order
Maryland’s Arsenal-2 will be the largest U.S. shipyard since World War II.
The United States will construct its largest shipyard since World War II, a $6.6 billion project announced by President Donald Trump in Maryland. The facility, named Arsenal 2, will be developed by defense technology firm Anduril Industries at Sparrows Point, a site with deep historical ties to American shipbuilding.
The new shipyard will produce critical components for Virginia-class submarines and next-generation autonomous vessels. These parts—including torpedo tubes and advanced submarine systems—will be shipped to General Dynamics Electric Boat and HII Newport News Shipbuilding for final assembly. By distributing production across multiple yards, the project aims to ease pressure on the Navy’s two primary shipbuilding facilities and accelerate the delivery of fast-attack submarines.
Investment and Infrastructure: Shipyard
Anduril will invest $3.7 billion in private capital to build the 2-million-square-foot facility, equivalent to 40 football fields, on 187 acres at Tradepoint Atlantic. The site, once home to Bethlehem Steel, will feature assembly halls, fabrication spaces, and a 1,200-foot graving dock. The U.S. Navy has also awarded Anduril a $2.9 billion contract, with payments tied directly to production performance—a structure that shifts most execution risk to the company.
The project is expected to generate $2 billion in annual economic output and $312 million in wages. It will create over 3,200 direct jobs in Maryland, along with an additional 11,500 jobs nationwide. The workforce will include welders, electricians, inspectors, and technicians, all coordinated through Anduril’s ArsenalOS software. This industrial platform integrates material handling, assembly, documentation, and inspections into a single real-time dashboard, streamlining operations for hundreds of workers.
Strategic and Economic Impact
President Trump announced the project on October 6, 2026, at Sparrows Point, calling it the largest new shipyard since World War II. He also revealed that American taxpayers would receive a 40% stake in the facility, though further details on the ownership structure were not disclosed.
The shipyard’s location at the former Bethlehem Steel site leverages existing infrastructure while revitalizing a region with a storied industrial past. For Maryland, the project represents a major economic opportunity, with job creation spanning skilled trades, engineering, and software development. Strategically, it strengthens the Navy’s ability to meet its shipbuilding targets, ensuring a more resilient and efficient production pipeline for critical naval assets.
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