# Anduril Navy Submarine Components Contract On October 6, 2026, [[Anduril]] announced a [[United States Navy]] contract **worth up to $2.9 billion** to manufacture components for Virginia-class attack submarines, paired with Anduril's own **$3.7 billion** investment in [[Arsenal-2]], a new shipyard at Sparrows Point in Baltimore County, Maryland. The widely reported "$6.6 billion" figure is the two numbers added together: one is a contract ceiling, the other is company capital. ## Deal Mechanics - **Value:** up to $2.9B. This is a ceiling. No obligated amount, contract number, contract type or awarding command has been published. - **Scope:** Virginia-class submarine components; torpedo tubes and doors are the named examples. Anduril says it will expand into larger submarine modules and hull sections once the shipyard is running. - **Payment structure:** payments are tied to demonstrated production outcomes, and Anduril carries most of the execution risk. [[Christian Brose]], Anduril's chief strategy officer, described it as "the government buying the results of what we're able to produce from the facility that we've invested in." - **Funding:** Fox45 reports the administration expects to fund the contract mainly from fiscal 2028 and later budgets. - **Shipyard:** about 2 million square feet at Tradepoint Atlantic, the former Bethlehem Steel site. First operations are planned for 2030. Anduril promises 3,100 direct jobs (its own Arsenal-2 page dates that figure to 2034). - **State and county support:** Maryland and Baltimore County committed to match up to 13% of Anduril's investment. Part of that needs approval from the Maryland General Assembly and the Baltimore County Council. Fox45 estimates the full 13% at about $481M; officials have not confirmed that figure. ## Context The award came after a year in which Anduril was shut out of the Navy's structured maritime competitions: its autonomous warship program was cancelled in March 2026 and the company was omitted from the MUSV marketplace that replaced it. Here the Navy is buying crewed-submarine parts, the most capacity-constrained part of the naval industrial base, where [[Huntington Ingalls Industries]] and General Dynamics Electric Boat are the incumbent builders. [[Donald Trump]] announced the project at the site. His remarks that autonomous submarines would be built there and that taxpayers would receive a 40% stake appear in neither Anduril's nor Maryland's release. Governor [[Wes Moore]] did not attend; his office said he was blocked from speaking, and the White House said he boycotted. The award came six days after [[Palmer Luckey]] was named a lead of a Pentagon future-of-warfare study. That timing is covered on the [[Palmer Luckey News Log]]; no reporting alleges a causal link. ## Significance This is Anduril's largest Navy award and its entry into crewed-submarine production. It follows the same model as [[Arsenal-1]] in Ohio: the company builds the factory with its own money and the government commits to buy output. The open questions are how much has actually been obligated and whether the FY2028 funding materializes. ## Open questions - Contract number, contract type, awarding activity and obligated amount (DoD announcement or USAspending). - Maryland General Assembly and Baltimore County Council votes on the 13% match. ## See Also - [[Anduril]] - [[Arsenal-2]] - [[Arsenal-1]] - [[Anduril Contracts]] - [[Anduril Watch Log]] - [[Anduril Events]] - [[United States Navy]]