Trump Announces $6.6 Billion Anduril Submarine Plant for Baltimore

Donald Trump announced a $6.6 billion submarine-parts factory in Baltimore on Tuesday, October 6, 2026. It will be owned by Anduril Industries and partly funded by the U.S. government. The announcement was made at Sparrows Point The Guardian.

The project is called Arsenal Two. Anduril said the funding is $2.9 billion from the U.S. Navy and $3.7 billion in private money. The site is an unused shipyard at Sparrows Point, within Tradepoint Atlantic in Baltimore County. It was once the site of a large steel mill Reuters.

Arsenal Two is planned to build torpedo tubes and other sections for Virginia-class nuclear-powered attack submarines. Think of it as making key pieces of the submarine away from the main shipyard. Anduril said the Baltimore plant will not be ready to make parts until 2030. Acting Navy Secretary Hung Cao described it as a partnership between the Navy and Anduril. Anduril titled its October 6, 2026 announcement, "Anduril, U.S. Navy Invest $6.6 Billion to Expand America's Submarine Industrial Base."

The plan includes a jobs estimate. Sparrows Point is expected to support 14,000 jobs, including 3,100 permanent jobs WBALTV. Trump said U.S. taxpayers would receive a 40% stake in the shipyard.

Anduril founder Palmer Luckey was not at the Baltimore event. Maryland Gov. Moore was not set to attend Trump's Baltimore project event AP. Luckey has given $5.9 million to Republican causes since 2017 and has hosted campaign fundraisers for at least 20 Republican politicians, including Donald Trump. Defense Secretary Pete Hegseth named Luckey as an adviser to the Pentagon's Project Meridien, tasked to study the future of warfare.

The broader context here is Washington's effort to increase submarine-building capacity. A contractor-owned yard with Navy funding and a stated taxpayer ownership share is different from a normal supply contract or a government-owned yard. The four years before production starts, the split between Navy and private money, and what the 40% stake means will shape whether Arsenal Two relieves pressure on Virginia-class parts supply or adds another delayed facility to a program already facing schedule strain. Contract terms, where hull sections are built, and hiring for the 3,100 permanent posts are what to follow.