Anduril Deal: $3.7 Billion Investment Lands in Sparrows Point

Gov. Wes Moore received a text message from Matt Grimm, a co-founder of Anduril Industries, on a Tuesday in December. The message asked if Maryland was interested in hosting a new manufacturing facility. What followed was a months-long, low-profile negotiation process that has concluded with a commitment to build a $3.7 billion shipyard in southeast Baltimore County.

The facility, designated as Arsenal-2, will occupy a corner of the former Bethlehem Steel site. Company leaders say the project will create 3,172 permanent jobs. This marks the company's second major manufacturing hub, following its first facility in Ohio. The investment relies on a $2.9 billion contract with the U.S. Navy to build components for Virginia-class attack submarines.

Officials from the state and Baltimore County worked with Anduril executives and Tradepoint Atlantic, a logistics hub in Sparrows Point, to structure the deal. The location required specific acreage, water depth, and rail access. Jim Davis, through his group Redwood Holdings, purchased the bulk of the industrial site in 2014 and spent millions cleaning up the brownfield to make it viable for heavy manufacturing.

Negotiations involved a series of private meetings and site visits. In January, Anduril executives toured the 187-acre shipyard. In March, county and state officials flew to Anduril's headquarters in Costa Mesa, California, for a 20-hour visit. The group kept their trip secret to avoid market speculation. Maryland officials assembled nearly $500 million in tax incentives to attract the firm.

The state has promised $75 million for construction and worker training over six years. Baltimore County has approved $210 million in personal property tax breaks. Another $200 million in funding is expected to come from existing state economic development programs. The Navy approved the site in late September, clearing a final regulatory hurdle for the project.

The announcement on Oct. 6 sparked a dispute between Moore and President Donald Trump over who deserved credit for the deal. The White House removed Moore from the speaking lineup at the celebration event. Moore declined to attend, stating he did not want to sit on stage while Trump took credit for a deal his administration negotiated. The event featured speeches from Trump and Defense Secretary Pete Hegseth.

Anduril plans to begin construction this year. The company expects to hire its first workers in 2029 and open the shipyard in 2030. The facility will produce parts for 460-foot nuclear-powered submarines, which cost approximately $5 billion each. The company projects the facility will be fully built by 2034.