New Maryland defence shipyard gets US$6.6bil commitment

Defence tech firm Anduril unveiled plans on Tuesday for a US$3.7 billion shipyard in Maryland that is expected to generate 3,100 jobs, in a ceremony attended by president Donald Trump.

Anduril, which was also awarded a US$2.9 billion US Navy contract, said the new high-tech shipyard at Sparrows Point, Maryland, near the Port of Baltimore, would make components for the Navy’s Virginia-class submarines.

The investment and associated contract, together valued at up to US$6.6 billion, come amid a broader push by the US and its allies to expand arms production following Russia’s invasion of Ukraine and conflicts in the Middle East.

“Right here in Sparrows Point, you’ll build the next generation of American submarines,” Trump told a crowd of mostly students from the US Naval Academy, noting the facility will produce torpedo tubes and critical components for Virginia-class attack submarines.

“American taxpayers will receive a 40% stake in the new shipyard,” Trump added, although he did not indicate what the ownership mechanism would be.

The US already owns four shipyards, including the Norfolk Naval Shipyard in Virginia and the Portsmouth Naval Shipyard in Maine, which are mostly focused on the repair and upkeep of existing ships, not construction of new vessels or components for new craft.

Rare political alignment

The project puts Trump in rare alignment with a frequent critic, Maryland governor Wes Moore, a Democrat who is seen as a potential 2028 presidential candidate.

Maryland and Baltimore County committed to match up to 13% of the total investment by Anduril, about US$481 million, through funds that will need to be approved by local legislative bodies.

In the run-up to November’s congressional elections, Trump is aiming to show that his policies have bolstered jobs and manufacturing.

Polls have shown that Trump’s Republicans have lost voter support, largely over cost-of-living concerns.

The president has said his tariffs and industrial policy will revive US factory work, from steelmaking to shipbuilding.

Anduril’s location in Maryland was formerly home to a large steel mill that went through decades of financial decline and closed in bankruptcy in 2012.

Trump is touring the country in a pre-election blitz, announcing or claiming credit for a range of private-sector investments and government spending initiatives he has called “goodies”.

End-of-decade target

The new plant, dubbed Arsenal-2, is expected to be operational by the end of the decade.

Anduril is building another facility in California to manufacture Virginia-class submarine components, and plans to expand into producing larger submarine modules and hull sections once its Baltimore shipyard becomes operational.

Virginia-class submarines, which can travel at speeds exceeding 25 knots, are the Navy’s latest generation of nuclear-powered attack submarines, designed for anti-submarine warfare, land-attack strikes and surveillance missions.

General Dynamics’ Electric Boat and Huntington Ingalls Industries jointly build them.

Anduril, founded in 2017 by Palmer Luckey, is best known for its autonomous systems, drones and software built for the US military and its allies.

Anduril’s US$1 billion Arsenal-1 facility in Ohio began producing autonomous combat drones this year.

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