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Anduril plans to enter the Virginia-class submarine supply chain by making components, not complete submarines. Its October 6, 2026 announcement paired a planned new Maryland facility with a Navy contract worth up to $2.9 billion, payable against production outcomes.
What does the Navy contract pay for?
The announced $6.6 billion combines Anduril’s planned company investment with Navy purchases tied to what the facility produces. It is not an unconditional $2.9 billion grant or an immediate cash payment. The Associated Press reported that administration officials described the government commitment as purchasing the factory’s output.
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| Funding source | Announced amount and terms |
|---|---|
| Anduril | $3.7 billion planned investment. Anduril President Chris Brose told the AP on October 6, 2026, that this covers establishing the facility, building its workforce, and providing the technology and capabilities required for the work. |
| U.S. Navy | Up to $2.9 billion under a contract tied to demonstrated production outcomes, according to Anduril’s October 6 announcement. The AP reported the government would commit funds by buying what the factory produces. |
What is Anduril building for the Navy?
Components for Virginia-class submarines
The planned facility at Sparrows Point in Baltimore County, Maryland, is intended to manufacture components for Virginia-class nuclear-powered attack submarines. Torpedo tubes are the starting product, according to USNI News. An industry official told the outlet that modules and, farther in the future, full ship sections are aspirations—not a plan for Anduril to build complete submarines.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchGeneral Dynamics Electric Boat and HII’s Newport News Shipbuilding build Virginia-class submarines in a teaming arrangement. Anduril’s announced role is as a component supplier in that industrial base. Newport News Shipbuilding President Kari Wilkinson told USNI News on October 6 that the company welcomed added capacity for submarine component manufacturing and Anduril as a future subcomponent partner.
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“Software-defined shipyard” is Anduril’s description
Anduril calls the planned facility a “software-defined shipyard.” That is the company’s characterization of the project, not an independently assessed technical category.
When will the new submarine factory open?
Maryland: production targeted for 2030
Anduril says the Sparrows Point complex is expected to be ready for production in 2030. That is a company target; the announcement does not mean the Maryland facility is already operating.
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California: planned earlier production activity
Anduril plans to begin production sooner at its Costa Mesa, California, facility. USNI News reported that torpedo-tube prototypes had begun there and that the site was SUBSAFE certified, citing confirmation from an Anduril spokesperson. That reported prototype activity is distinct from production at the planned Maryland complex.
How much capacity and how many jobs are projected?
A senior administration official told reporters that the new capacity could add 9 million labor hours per year, which the official described as a 15 percent increase for the Virginia-class program. Both figures are projections, not measured output already delivered.
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Anduril expects the Maryland complex to create 3,100 direct jobs. Officials at the announcement also anticipated thousands of indirect jobs, the AP reported. These are employment estimates, not realized job counts.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is Project Meridian, and what is Palmer Luckey’s role?
Separately from the Navy contract announcement, USNI News reported on October 6, 2026, that Anduril CEO Palmer Luckey had been named a co-director of Project Meridian, an initiative to assess the future of warfare. The reported role and remit should be attributed to USNI News; a formal public DoD appointment notice or charter is not established by that report.
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The timing connects the two news items, but it does not establish that Luckey’s reported appointment caused or influenced the Navy contract.
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