The United States is investing $6.6 billion to expand its submarine industrial base through a new manufacturing facility in Maryland, backed by defence technology company Anduril Industries and the US Navy.
Anduril plans to invest $3.7 billion in the development of Arsenal-2 at Tradepoint Atlantic in Baltimore County, while the US Navy has awarded the company a contract valued at up to $2.9 billion, with payments linked to demonstrated production outcomes.
The proposed facility will manufacture components and large structural assemblies for Virginia-class nuclear-powered attack submarines before transferring them to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding for final assembly.
Arsenal-2 is planned to cover more than 2 million square feet (185,806 square metres) across a 187-acre (75-hectare) site. The facility will feature high-bay assembly halls, fabrication areas, flexible production lines, and a 1,200-foot (365-metre) graving dock. Its location at the Sparrows Point complex will provide access to road, rail, and maritime transportation infrastructure.
The project aims to establish an additional manufacturing source for submarine components, complementing the existing production capabilities of the two primary Virginia-class submarine builders. According to Anduril, the additional capacity could enable more construction activities to proceed simultaneously across the US submarine industrial base.
The company expects Arsenal-2 to generate more than 3,100 direct jobs and support over 11,000 indirect jobs. Initial operations are projected to begin in 2030, with production expanding progressively as the workforce, supplier network, and manufacturing infrastructure develop.
ArsenalOS to Digitise Submarine Manufacturing Operations
Anduril will deploy its ArsenalOS manufacturing execution and production management software at Arsenal-2 to coordinate factory-floor activities and improve visibility across complex manufacturing workflows. Rather than functioning as a conventional shipbuilding design tool, the system is intended to connect production processes and provide real-time operational oversight.
The software will integrate fabrication workflows, assembly and outfitting sequences, material movement, inspections, and production documentation. This will enable workers and managers to monitor manufacturing progress, identify production bottlenecks, and track the status of individual tasks throughout the facility.
ArsenalOS is also designed to incorporate digital work instructions and quality-control procedures directly into manufacturing operations. Information collected through sensors and automated systems can be integrated into the platform, supporting improved production monitoring and process coordination.
Physical manufacturing activities will continue to be carried out by skilled personnel, including welders, electricians, pipefitters, shipfitters, and quality inspectors. By combining digital production management with industrial manufacturing expertise, Anduril aims to improve workflow coordination and increase the efficiency of submarine component production.
The Arsenal-2 initiative represents a major effort to strengthen US submarine manufacturing capacity, expand the domestic defence-industrial workforce, and support the long-term production requirements of the Virginia-class submarine programme.
