Washington, Oct 2026 : US President Donald Trump and Defence Secretary Pete Hegseth have announced a $6.6 billion public-private investment to develop a major new shipyard in Maryland, aimed at expanding the country’s capacity to produce nuclear submarine components and autonomous underwater vessels.
The facility, named Arsenal-2, will be developed at Sparrows Point in Maryland, a site with a long history of industrial manufacturing. The project is being positioned by the Trump administration as a major expansion of the US defence industrial base and a significant step towards rebuilding domestic shipbuilding capacity.
Anduril Industries will invest $3.7 billion to construct and operate the facility, while the US Navy will contribute up to $2.9 billion through an agreement linked to production outcomes. Together, the investments represent a $6.6 billion expansion of the US submarine industrial base.
“Today, we're officially launching the construction of the largest new shipyard in the United States,” Trump said during an event at the site. He described the project as unprecedented in scale since the Second World War.
According to the administration and Anduril, Arsenal-2 will initially manufacture components for the Virginia-class nuclear-powered attack submarine programme. The facility is also expected to eventually support production of autonomous underwater vessels, expanding the role of advanced technologies in US naval operations.
Trump said the investment would provide a major boost to Maryland’s economy while supporting jobs across the country. The administration estimates that the project will create more than 3,100 jobs in Maryland and support another 11,000 jobs nationwide.
“In a tremendous victory for our country and for the city of Baltimore, Anduril is investing $3.7 billion dollars in a state-of-the-art shipyard that will be known forever as Arsenal-2,” Trump said.
Anduril said the initial focus would be on increasing production capacity for the Virginia-class submarine programme. The US Navy has been seeking to expand its industrial base and accelerate submarine production amid growing demand for naval capabilities.
Trump also presented the project as part of a wider effort to revive American shipbuilding and strengthen domestic defence manufacturing. He predicted a substantial transformation at the site as construction and production expand.
“When you come back in two years, you're not going to believe what you see,” Trump said, adding that the facility would become a centre of high-technology manufacturing supporting ships and submarines.
Hegseth said rebuilding the US shipbuilding sector was central to strengthening the country’s military-industrial base. He linked the project to the administration’s broader push for faster and larger-scale defence production.
“In order to make America great again, you need to make your Navy great again,” Hegseth said, also calling for stronger shipbuilding, manufacturing and defence industrial capabilities.
He said the administration was pressing the Pentagon and defence companies to increase the speed, scale and urgency of weapons production in response to what he described as the security challenges of the 21st century.
The Arsenal-2 project also marks a significant expansion for Anduril, a defence technology company best known for autonomous systems and other advanced technologies, into the industrial infrastructure supporting nuclear-powered submarines.
The project is expected to combine Anduril’s expertise in autonomous systems with traditional shipbuilding and submarine manufacturing, while giving the US Navy an additional industrial base for future production.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
