Anduril Industries plans to invest $3.7 billion in a submarine manufacturing shipyard at Sparrows Point, promising more than 3,100 permanent jobs at full operation as Maryland and Baltimore County consider public support that could reach roughly $481 million.

The defense company’s proposed Arsenal-2 facility would bring large-scale shipbuilding work back to the former Bethlehem Steel industrial area, producing components and eventually entire sections to help meet the Navy’s demand for Virginia-class attack submarines.

President Donald Trump is scheduled to visit Baltimore County later today to discuss the project. He is scheduled to speak at 4 p.m. at 1660 Shipyard Road, according to White House guidance.

Christian Brose, Anduril’s president and chief strategy officer, said the company expects to begin hiring soon.

“This is going to be the culmination of two years of work,” Brose told The Baltimore Sun and other media during a briefing. “This is a shipyard that will be sized and shaped to support the Virginia class submarine program and a lot of marine capabilities beyond that.”

The announcement materials did not specify when the facility would reach full operation.

Maryland and Baltimore County have committed to matching up to 13% of Anduril’s anticipated private investment through existing incentive programs and new appropriations, the latter requiring approval from the General Assembly and County Council.

Baltimore County’s proposed contribution includes a manufacturing personal property tax credit worth up to $210 million over 30 years. The proposal would provide a 100% abatement of qualifying personal property taxes the company would otherwise owe.

The bill was introduced during Monday’s council night. Two council work sessions are planned this month, with the first potential vote Nov. 2.

The state’s package includes capital support for a workforce training center at an undetermined location at or near Tradepoint Atlantic.

“This massive new project will deliver the largest private investment and create the most jobs in Maryland in over a decade — driving billions of dollars in economic activity that will boost Maryland families not just in Baltimore County, but throughout the state,” Gov. Wes Moore said in a statement.

Moore said advanced training and skilled maritime manufacturing jobs would create opportunities for Maryland workers, thanking Anduril for choosing the state.

“With this facility, thousands of Marylanders will have new pathways to work, wages, and wealth,” he said.

Building submarines in sections

Arsenal-2 would begin with smaller manufacturing assignments before taking on increasingly complex work.

“The focus will be starting with the production of components, things like torpedo tubes, moving up to modules and eventually when the yard is fully realized, contributing what’s referred to as super modules,” Brose said.

Modules are prefabricated sections used to assemble submarines. Super modules combine multiple sections into larger building blocks that can be transported to another shipyard for final assembly.

“We as a nation have been struggling to produce enough of these submarines over the past 10 to 20 years,” Brose said. “Really what this is is a massive investment to create additional production capacity to meet the requirements the United States Navy and our allies have.”

Federal reviews have documented that production problem. A February 2025 Government Accountability Office report found that workforce and infrastructure challenges had prevented shipbuilders from meeting Navy goals. It also found that the Defense Department had not fully determined the effectiveness of billions of dollars invested in the shipbuilding industrial base.

“Sparrows Point helped build the fleet that won World War II,” Anduril co-founder and CEO Brian Schimpf said in a statement. “With Arsenal-2, Anduril will return large-scale shipbuilding to a site that can once again define American naval power.”

Schimpf said the property fits what his company needs.

“Maryland offers the workforce, the infrastructure, and the industrial heritage this mission demands,” he said.

Thousands of jobs, with a slow buildout

The state announcement projects more than $2 billion in annual economic output from Anduril’s investment, including an estimated $312 million in annual wages.

Those figures describe anticipated benefits, rather than employment or spending already delivered.

A recent manufacturing project of comparable employment size illustrates how long a major factory can take to reach its hiring goals.

Mazda Toyota Manufacturing announced a $1.6 billion plant in Huntsville, Alabama, in 2018, promising 4,000 jobs. Production began in 2021, and the company reached its employment commitment in 2023 — about five years after the announcement. Investment had grown to $2.3 billion by March 2023.

Research suggests that broader employment benefits can be substantial, but vary widely.

A 2024 study published in the Journal of Regional Science examined 44 large publicly subsidized projects that opened or expanded between 2000 and 2015. It compared employment outside the subsidized businesses with outcomes in comparable areas.

Positive effects on surrounding employment were concentrated among manufacturing projects, but many estimates were statistically indistinguishable from zero. Larger subsidies did not reliably produce larger employment benefits.

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