Anduril, US Navy announce USD 6.6 bn investment to expand America’s submarine industrial base

US defence technology firm Anduril has announced a USD 6.6 billion investment to expand America’s submarine industrial base, including USD 3.7 billion for a new software-defined shipyard, the company said in a release, adding, the project is estimated to create over 3,000 direct jobs.

US defence technology firm Anduril has announced a USD 6.6 billion investment to expand America’s submarine industrial base, including USD 3.7 billion for a new software-defined shipyard, the company said in a release, adding, the project is estimated to create over 3,000 direct jobs. According to the release, US President Donald Trump announced a new software-defined shipyard backed by Anduril Industries called Arsenal-2.

The facility will manufacture critical components for Virginia-class submarines, adding capacity to the US submarine industrial base as the Navy seeks to increase attack submarine production. Virginia-class submarines are built by General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding. “President Donald J. Trump today announced Arsenal-2, a new software-defined shipyard backed by a USD 3.7 billion private capital investment by Anduril Industries. The facility will manufacture critical components for the Virginia-class submarine, adding significant new capacity to America's submarine industrial base in support of the Navy's effort to increase attack submarine production,” the release said.

The company added, Arsenal-2 will be built at Tradepoint Atlantic in Baltimore County, Maryland, where the project will create “3,100 direct jobs and support more than 11,000 indirect jobs.” “The site will drive $2 billion in annual economic output, including an estimated $312 million in wages each year,” the US defence firm further added.

The US Navy awarded Anduril a contract of up to USD 2.9 billion, with payments tied directly to demonstrated production outcomes. “This contract structure ensures that Anduril, not the taxpayer, takes on the majority of the execution risk, aligning incentives to ensure on-time, high-quality submarine production,” the company said.

Together, the total amount aggregates to a USD 6.6 billion investment in America’s submarine industrial base. According to the release, Arsenal-2 will manufacture complex components and large-scale assemblies for Virginia-class submarines and supply them to Electric Boat and Newport News Shipbuilding for final assembly. The company further added that additional production source will allow more submarine construction to take place simultaneously across the industrial base, boosting overall capacity for the Virginia-class programme. (ANI)