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

Anduril said it would invest $3.7bn to develop shipyard that would build submarine parts.Defence technology firm Anduril said it will invest $3.7bn to develop a new shipyard in the US state of Maryland and will build critical components for the United States Navy’s Virginia-class submarines, as Washington seeks to bolster its maritime defence capabilities.California-based Anduril Industries confirmed on Tuesday it would invest in the submarine production plant, dubbed Arsenal-2, and will receive a $2.9bn US navy contract to manufacture submarine parts.Recommended Stories list of 3 itemslist 1 of 3US delivers F-16V fighter jets to Taiwan as island eyes threat from Chinalist 2 of 3New aircraft carrier, 10,000 US troops: Is the Iran war about to escalate?list 3 of 3US pulls bombers from UK base: Is Iran manoeuvring Trump’s war plans?end of listUS President Donald Trump was set to unveil the project and announce a massive naval shipyard expansion in Baltimore, Maryland, on Tuesday afternoon.Anduril is a defence technology firm whose co-founder, Palmer Luckey, is heading a new Defense Department project alongside technology billionaire and former top Trump adviser Elon Musk. Luckey and Musk were tapped by the Pentagon to lead Project Meridian, a newly-disclosed initiative focused on the future of warfare, including autonomous, AI-powered and maritime military capabilities.Valued at nearly $117bn, Anduril specialises in uncrewed underwater vehicles and ocean vessels – or naval drones – designed for the US military and its allies.The initiative was announced at Defense Secretary Pete Hegseth’s State of the Force address last week in Virginia, part of a 120-day study aimed at identifying new technology needed for next-generation US battlefield supremacy.The investment is the latest in a series of broader steps by the Pentagon to accelerate naval shipbuilding and weapons production, spurred by the war on Iran and other regional conflicts that continue to threaten global oil traffic while highlighting the critical role of maritime power.