Trump announces $3.7B Maryland shipyard for Navy submarine components

President Donald Trump unveiled a $3.7 billion investment by defense technology firm Anduril Industries to construct a new shipyard in Maryland, marking what officials described as the largest U.S. shipyard construction project since World War II. The facility, called Arsenal-2, will be built at Sparrows Point, a former Bethlehem Steel mill site that closed in 2012. Anduril will receive a $2.9 billion Navy contract to manufacture critical components for Virginia-class submarines, including torpedo tubes and hull sections for vessels being upgraded to carry up to 40 Tomahawk missiles each.

The announcement came as part of Trump's broader effort to showcase defense investments ahead of midterm elections. Trump stated the project would secure a 40% government stake in the shipyard and emphasized its importance for national security and restoring American industrial capacity. "The workers of Baltimore and the shipyard here at Sparrows Point have been a vital part of the American industrial strength for literally over 100 years," Trump said at the Tuesday event. The facility is expected to begin operations in 2030.

The project is expected to create 3,100 direct jobs in Maryland, with thousands more indirect jobs supported through supply chains. Anduril President Chris Brose noted the facility would leverage "manufacturing revolutions" from aerospace and other sectors alongside advanced software to modernize production methods. The investment reflects Pentagon efforts to accelerate naval shipbuilding capacity, as U.S. shipyards currently deliver only 1.1 to 1.2 submarines annually against a target rate of two per year, hampered by supply chain disruptions and labor shortages.

Democratic Maryland Governor Wes Moore did not attend the event, with his spokesman stating Moore had been blocked from speaking. A White House official indicated Moore was invited as a guest. Despite the scheduling dispute, Moore issued a statement praising the project, saying it could potentially create "the most jobs in Maryland in history" and emphasizing his commitment to delivering for Marylanders. The announcement also coincided with the disclosure that Anduril co-founder Palmer Luckey is leading a Defense Department initiative with billionaire Elon Musk to study future warfare technologies, including autonomous and AI-powered military capabilities.