Anduril to invest $3.7bn in new Maryland shipyard after $2.9bn submarine contract

US defence technology company Anduril has announced a $3.7bn investment to build a new shipyard in Maryland, alongside a $2.9bn contract from the US Navy to manufacture components for Virginia-class submarines. The facility, named Arsenal-2, is part of a broader push by Washington to strengthen its maritime defence capabilities.

California-based Anduril Industries confirmed the investment and contract on Tuesday. US President Donald Trump was expected to formally present the project later that day during an announcement in Baltimore, Maryland, covering a wider expansion of naval shipbuilding.

Anduril, valued at close to $117bn, specialises in uncrewed underwater vehicles and naval drones built for the US military and allied forces. The company's co-founder, Palmer Luckey, is currently co-leading a Pentagon initiative called Project Meridian alongside billionaire Elon Musk, a former senior adviser to Trump. The project, revealed during Defense Secretary Pete Hegseth's State of the Force address last week in Virginia, is a 120-day study examining future warfare technology, including autonomous systems, artificial intelligence and maritime capabilities.

The Maryland shipyard investment forms part of wider efforts by the Pentagon to speed up naval shipbuilding and weapons manufacturing, driven in part by conflict involving Iran and other regional tensions affecting global oil shipping routes and underscoring the importance of naval strength.

Anduril was founded in 2017 by Luckey and is known primarily for its autonomous military systems, drones and software.