Trump announces $6.6bn defense shipyard owned by top Republican donor’s firm

Donald Trump announced a new $6.6 billion shipbuilding factory in Baltimore, owned by defense firm Anduril Industries. The project, located at a currently unused shipyard in Sparrows Point, will be partly funded by the US Navy with $2.9 billion, alongside $3.7 billion in private funding. Anduril founder Palmer Luckey is a significant Republican fundraiser and a friend of Trump. The factory, named "Arsenal Two," is intended to build parts for Virginia-class submarines, though Anduril has no prior experience in manned submarine manufacturing. The operation is not expected to be ready until 2030, and it remains unclear what Trump meant by US taxpayers receiving a "40% stake."

Defense technology firm Anduril Industries will invest $3.7 billion to develop a new shipyard in Maryland, dubbed Arsenal-2, to build critical components for the U.S. Navy’s Virginia-class submarines. This investment is part of a $2.9 billion U.S. Navy contract to manufacture these parts, aiming to bolster U.S. maritime defense capabilities. The project was set to be unveiled by former President Donald Trump. Anduril co-founder Palmer Luckey is also leading a new Defense Department project, Project Meridian, with Elon Musk, focusing on future warfare technologies including autonomous and maritime capabilities. This initiative is part of broader Pentagon efforts to accelerate naval shipbuilding and weapons production amid ongoing regional conflicts.