President Donald Trump traveled to Baltimore on Tuesday, October 6, 2026, to unveil a $6.6 billion project aimed at increasing U.S. submarine production. The announcement, held at Sparrows Point in Baltimore County, centers on the construction of a new defense manufacturing facility by Anduril Industries at the Tradepoint Atlantic site.
The project follows a private-public investment structure. Defense technology firm Anduril Industries intends to invest $3.7 billion to build the new shipyard, while the U.S. Navy has awarded the company a contract worth up to $2.9 billion. The facility, named Arsenal-2, will focus on producing components and large-scale assemblies for Virginia-class nuclear-powered attack submarines.
The planned facility is expected to span 2 million square feet and is projected to create more than 3,100 direct permanent jobs. According to the reported figures, the site will support more than 14,000 jobs overall once operational. Initial production is scheduled to begin around 2030, starting with torpedo tubes before moving to larger assemblies.
The concrete change for local residents will be the introduction of large-scale naval manufacturing to the region, which is slated to begin by 2030. Defense contractors and specialized manufacturers may see increased demand for Virginia-class submarine components as the facility ramps up its assembly capabilities. This project sets a precedent for private defense firms like Anduril Industries to lead the construction of major shipbuilding infrastructure typically managed by established naval yards.
Maryland Governor Wes Moore (D), who supported the project, was reportedly blocked from speaking at the announcement, according to a source familiar with the matter. The White House characterized the governor's reaction to the event as "throwing a tantrum." Moving forward, construction is expected to proceed toward the 2030 production start date, though specific groundbreaking deadlines and interim construction milestones have not yet been disclosed.