US firm gets $2.9bn sub deal after boss joins war study with Musk

What the report says

Defence technology company Anduril said it will invest $3.7bn to build a new shipyard in Maryland and received a $2.9bn US Navy contract to make critical parts for Virginia-class submarines, according to Al Jazeera, citing AFP and Reuters. The project, called Arsenal-2, is part of a wider push by Washington to expand naval shipbuilding and strengthen maritime defence production.

The report says the Maryland facility will focus on components for the Navy’s Virginia-class fast-attack submarines, including torpedo tubes and larger hull sections. Anduril said the plant is expected to create about 3,100 jobs directly and support more than 11,000 indirect roles. The company, founded in 2017 and known for autonomous systems, drones and military software, has also expanded into undersea and maritime systems.

Al Jazeera reported that the new contract comes as the Pentagon tries to speed up submarine production, which has lagged because of supply-chain problems and labour shortages. The Navy is aiming for two new boats a year, but current output has reportedly remained below that target. The article also noted that Anduril co-founder Palmer Luckey is involved in a Pentagon study on future warfare alongside Elon Musk, though the submarine deal itself is described as separate from that effort.

The development matters because Virginia-class submarines are a key part of US naval power in a period of rising concern about industrial capacity, maritime security and global supply chains.