Trump announces $3.7 billion Arsenal-2 submarine shipyard at Sparrows Point

President Donald Trump visited Maryland on Tuesday to announce that the former Bethlehem Steel site at Sparrows Point will be converted into a 2-million-square-foot shipyard for building components for Virginia-class attack submarines.

The project, to be known as Arsenal-2, is expected to support 14,000 jobs and become the state’s largest job creator in more than a decade, according to a media briefing reported by WBAL.

Trump toured Tradepoint Atlantic with Anduril Industries, the defense technology firm that will operate the site. He said Anduril is investing $3.7 billion in a state-of-the-art shipyard that will be known forever as Arsenal-2.

Anduril said the Sparrows Point facility will manufacture torpedo tubes, sterns, and bow sections, then ship large assemblies to the Navy’s two main submarine builders for final assembly.

Maryland Gov. Wes Moore called the project the largest private investment in the state in more than a decade. The Navy contract is worth up to $2.9 billion, while Anduril’s private investment is $3.7 billion.

“With this facility, thousands of Marylanders will have new pathways to work, wages, and wealth through advanced training and high-skilled maritime manufacturing jobs,” Moore said.

The facility is projected to support 14,000 jobs, including 3,100 permanent positions. Baltimore County Executive Kathy Klausmeier noted the site’s earlier role: “For generations, this site shaped America’s steel and shipbuilding legacy, including its critical role during World War II.”

Site preparation and permitting will begin immediately, with construction to start after necessary approvals and initial operations expected in 2030, the company said.

Under the agreement, Maryland and Baltimore County will match up to 13% of the anticipated investment through existing economic incentive programs and new appropriations. The state would also support a workforce training facility near Tradepoint Atlantic.

Anduril said it is already developing manufacturing methods and training workers at a facility in California as it prepares for the Sparrows Point build-out.

Anduril cofounder and CEO Brian Schimpf said Arsenal-2 will “return large-scale shipbuilding to a site that can once again define American naval power” and add production capacity the Navy needs for Virginia-class requirements.