Anduril lands $2.9B Navy submarine shipyard contract

Anduril won an up-to-$2.9 billion contract with the U.S. Navy to boost production of Virginia‑class submarines, and is committing roughly $3.7 billion to build a new shipyard at Sparrows Point near Baltimore. The planned 2 million‑square‑foot facility, due to begin operations in 2030 and expected to create about 3,100 jobs, will manufacture submarine components while a 160,000‑square‑foot site in Orange County, California, will produce parts such as torpedo tubes. Anduril president and chief strategy officer Chris Brose framed the effort as scaling capacity to meet national requirements and said the company aims to become a growing part of the supply chain for lead shipbuilders.

The announcement followed co‑founder Palmer Luckey’s appointment to a Pentagon task force called Project Meridian, which also includes Newt Gingrich and Elon Musk, prompting scrutiny over defense tech influence in Washington. Department of Defense CTO Emil Michael dismissed conflict‑of‑interest concerns. The move highlights broader ties between venture‑backed defense firms and government: other tech investors like Marc Andreessen and Blake Masters have taken Pentagon advisory roles, and primes such as General Dynamics (which recently won a $76.6 billion submarine award) remain dominant. Anduril, known for autonomous drones and pursued drone‑boat projects, positions the new yard as an opportunity to “reimagine” shipbuilding and expand into conventional naval production.