Trump launches 'Arsenal-2' shipyard with $3.7B Anduril investment

US President Donald Trump on Tuesday announced the construction of the largest new shipyard in the United States since World War II at Sparrows Point in Maryland, unveiling a $3.7 billion investment by defense technology company Anduril alongside a $2.9 billion contribution from the US Navy. Speaking at the site, Trump said the facility — to be known as "Arsenal-2" — represents a major victory for both the country and the city of Baltimore. "Today, we're officially launching the construction of the largest new shipyard in the United States," he said.

Submarine Production Plans

"In a tremendous victory for our country and for the city of Baltimore, Anduril is investing $3.7 billion in a state-of-the-art shipyard that will be known forever as Arsenal-2," Trump added. The shipyard will manufacture the next generation of American submarines, he noted, including autonomous underwater vehicles, torpedo tubes, and critical components for Virginia-class attack submarines, with the project carrying the potential for $21 billion in future purchases. "Right here in Sparrows Point, you'll build the next generation of American submarines, including autonomous subs, torpedo tubes, and critical components for our cutting-edge Virginia-class attack submarines," he said.

Funding and Defense Budget

The US Navy is contributing an additional $2.9 billion to support the shipyard's development, with American taxpayers set to receive a 40% stake in the new facility. "American taxpayers will receive a 40% stake in the new shipyard," Trump said.

The announcement comes as the president said the US defense budget would rise to $1.5 trillion this year. "I don't want to speak too early, but we broke the trillion mark, and we're going to be at 1.5," he stated.