Anduril will build the Arsenal-2 shipyard in Baltimore, with operations expected to begin in 2030. US officials did not confirm that the new site would help meet AUKUS commitments.
The United States and defense company Anduril announced a project worth up to $6.6 billion to expand production of components for Virginia-class nuclear-powered submarines. The Baltimore facility is expected to make parts including torpedo tubes and spherical air flasks. Reuters and the Associated Press reported that Anduril will invest $3.7 billion and the US Navy has awarded a contract worth up to $2.9 billion.
The US administration said the new site would expand production capacity and help speed submarine output. Officials estimated a 15% increase in labor hours, The Sydney Morning Herald reported. The Arsenal-2 site will be owned by Anduril and is expected to begin operating in 2030.
The project comes as the Virginia program faces production delays and a shortage of skilled workers. The Navy expects to reach a rate of two such submarines a year by 2032. However, administration officials did not answer whether the new shipyard would help the United States meet its AUKUS obligations. Australia is due to acquire three Virginia-class submarines under the agreement; they will not be new builds. The US has said production would need to rise to 2.3 boats a year to meet its commitments.
The facility will initially make smaller components to ease production bottlenecks. Bryan Clark of the Hudson Institute said the site could make only a small difference to delivery timelines. It is unlikely to have a near-term effect because production will take time to ramp up.