Anduril Industries announced it will invest $3.7 billion in private capital to expand production capacity for the Virginia-class Submarine Program for the U.S. Navy.
The investment will allow the company to expand its facilities in order to manufacture critical components for the Virginia-class submarine, which will add new capacity to the country’s submarine industrial base and support the Navy’s effort to increase attack submarine production.
The Navy awarded Anduril a contract of up to $2.9 billion, with payment tied to production outcomes, the company said. That contract ensures that Anduril, not the taxpayer, will take on the majority of the execution risk to ensure on-time, high-quality submarine production. The combined investment of Anduril and the U.S. Navy totals nearly $7 billion into the country’s submarine sector.
“This $3.7 billion investment is indication once again of the strength of Baltimore, and the impact Baltimore has on our entire state and country. Maryland continues to be at the forefront of technology, innovation, and advancing our national security goals,” U.S. Sen. Angela Alsobrooks (D-MD) said. “This investment will be a huge economic boost to our region – adding 14,000 total jobs – and it will support the Navy’s efforts to increase production and advance their submarine technology.”
Officials said Virginia-class submarines are built in one of the most complex manufacturing enterprises in the country that involves Anduril, General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding, among others. Meeting domestic fleet requirements and AUKUS commitments requires growth, officials said, including new suppliers, infrastructure, workforce, and production capacity.
“This massive new project will deliver the largest private investment, drive billions of dollars in economic activity, and create the most jobs in Maryland in history,” Maryland Gov. Wes Moore said. “That means thousands of Marylanders will have a new pathway to work, wages, and wealth through advanced training and high-skilled maritime manufacturing jobs. We thank Anduril for choosing Maryland, and we’re ready to build the future of our aerospace and defense economy together.”