Americans accelerate submarine production: Anduril partners with the US government

The American company Anduril will be co-responsible for the development of the new Sparrows Point shipyard in Baltimore, Maryland. In early October, President Donald Trump announced the establishment of a new production facility there named Arsenal-2. It is intended to produce components required for the construction of Virginia-class submarines. The parts manufactured there will be sent to two other shipyards: General Dynamics Electric Boat in Connecticut and Newport News Shipbuilding in Virginia. These facilities will be responsible for the final assembly of the vessels.

The total cost of the entire investment is expected to reach $6.6 billion (£5.2 billion). The majority of the expenditure will be covered by Anduril, which will contribute $3.7 billion towards the shipyard’s construction. The remaining $2.9 billion is to be provided by the US government. This announced investment is expected to create nearly 3,100 new jobs in the state of Maryland. This aspect was particularly significant in the context of the ongoing midterm election campaign. The Baltimore shipyard is scheduled to begin operations in 2030.

Australia is watching

The investment announced on 6 October by President Donald Trump has drawn significant attention from the Australian media. The reason for this is that Arsenal-2 is expected to reduce the risk of delays in delivering submarines to Canberra.

The project stems from the high-profile AUKUS agreement, signed in September 2021. This trilateral security partnership between Australia, the United Kingdom, and the United States was announced by the then-leaders: Australian Prime Minister Scott Morrison (in office 2018–2022), British Prime Minister Boris Johnson (2019–2022), and US President Joe Biden (2021–2025). The pact focused on, among other things, Australia’s acquisition of nuclear-powered submarines (SSNs). In March 2023, the allies announced the „Optimal Pathway”, which includes the sale of three American Virginia-class attack submarines. These are scheduled to be delivered to the Royal Australian Navy in 2032, 2035, and 2038, with an expected service life of 30 years from the date of transfer.

Regarding Anduril and Australia, it is worth noting that the American company is already engaged in supplying Canberra with Ghost Shark unmanned submarines.