President Donald Trump traveled to Sparrows Point, Maryland, on Tuesday to announce the construction of Arsenal-2, a major shipbuilding project that he said will become the largest new shipyard in the United States.

The project combines billions of dollars in private investment and support from the U.S. Navy. Anduril Industries, founded by Palmer Luckey, is investing $3.7 billion, while the Navy is contributing another $2.9 billion.

“Today, we’re officially launching the construction of the largest new shipyard in the United States, this is since World War II. There’s been nothing like what we’re doing today,” Trump said.

Arsenal-2 is planned for Sparrows Point, where the next generation of American submarines will be built. Trump cast the announcement as a revival of the area’s long connection to American shipbuilding, steel production, and military industry.

“Along these very shores, American tradesmen built one of the first frigates in the U.S. Navy, they forged the steel that built the Empire State Building and the Golden Gate Bridge, and this is where the patriots of Baltimore built the first-ever Liberty ship in the Second World War,” he added.

The president used the announcement to outline the military equipment expected to emerge from the new facility. The work will include autonomous submarines, torpedo tubes, and critical components for Virginia-class attack submarines.

“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-the greatest and quietest ever built,” he said.

Trump said the federal contribution stems from record funding provided by his administration and Republicans in Congress. He also raised the possibility of significantly larger future purchases connected to the shipyard and its production.

“Thanks to record funding from my administration, the Republicans in Congress, the U.S. Navy is also contributing an additional $2.9 billion to support the shipyard, with the possibility of ultimately, together with a lot of great patriots, $21 billion in future purchases,” he continued.

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The project is also expected to deliver a substantial employment boost. Trump estimated that work at the Maryland site will create more than 3,100 jobs in the state and support another 11,000 jobs across the country.

Anduril offered additional estimates for the shipyard’s economic impact. According to the company, the Sparrows Point project is expected to generate $2 billion in annual economic output, including $312 million in wages.

Those figures place the shipyard at the center of a sizable new investment in American submarine production. The project brings together Anduril’s $3.7 billion commitment and the Navy’s additional $2.9 billion contribution.

Luckey described the scale of the plan in a post on X, emphasizing both the size of the shipyard and the need for major investment. “Anduril is building America’s largest shipyard since WWII. This space needs bold investment and decisive action,” he wrote.

Anduril is building America's largest shipyard since WWII. This space needs bold investment and decisive action.

In the 1790s, Baltimoore clippers were the fastest and most advanced sailing ships of their time. King George III didn't stand a chance. Time to run the same play. — Palmer Luckey (@PalmerLuckey) October 6, 2026

The announcement focused on both military production and economic expansion at Sparrows Point. If the project proceeds as outlined, the Maryland facility will build submarine systems while generating thousands of jobs and billions of dollars in projected annual economic activity.

Trump’s appearance put the spotlight on a project intended to expand American shipbuilding capacity through a mix of private capital and Navy funding. With Arsenal-2, Anduril is preparing to produce equipment for the next generation of U.S. submarines at a site Trump praised for its industrial legacy.

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