Fox News correspondent Brooke Taylor reports on Vice President JD Vance’s initiative to strengthen U.S. shipbuilding capabilities in Texas. The strategy involves expanding American maritime power to counter China’s global shipping influence. This was discussed on ‘Special Report’.
The U.S. government has launched a $6.6 billion collaboration with a defense technology firm to expedite submarine production, addressing challenges in matching China’s extensive shipbuilding capacity. This investment brings a modern manufacturing approach to a sector experiencing production delays, specifically Virginia-class submarines.
An agreement involves Anduril building a 2-million-square-foot shipyard at Sparrows Point near Baltimore. This facility will focus on creating essential submarine components and eventually larger sections of these vessels. A senior official noted this could increase production capacity by approximately 15%, adding around 9 million labor hours annually. President Donald Trump is expected to visit the new facility to announce this initiative alongside Anduril leadership.
The Navy has aimed to produce two Virginia-class submarines annually but has achieved roughly 1.3 per year. This initiative seeks to meet that objective by 2032. Currently, 26 Virginia-class submarines exist, with two more expected in the spring. Anduril will invest $3.7 billion into the facility, workforce, and production capabilities, while the Navy plans to allocate an additional $2.9 billion for purchasing the output.
This approach represents a unique commercial model to solve longstanding industrial problems by having Anduril bear substantial financial risks. An industry official remarked that the effort focuses on selling successful production results to the government rather than receiving reimbursements.
Further strengthening ties with the Pentagon, Anduril founder Palmer Luckey, along with other notable figures, will participate in Project Meridian. This initiative is a study of future military needs and technologies, though it lacks procurement authority to mitigate conflicts of interest.
“We need new production capacity,” an industry official emphasized. “Growing the maritime industrial base and accelerating submarine output are essential.”
Anduril’s facility will provide torpedo tubes, a current bottleneck in Virginia-class submarine construction. The components, initially produced in California, will transition to Baltimore’s Arsenal-2 once operational. The plan includes leveraging automation and digital manufacturing for efficiency.
Apart from increasing submarine production, Arsenal-2 will foster employment, creating 3,100 direct jobs and 11,000 indirect jobs nationally. The facility is expected to start operations around 2030. Meanwhile, production of certain components has commenced in California.
The project aims to achieve stringent nuclear submarine construction standards before advancing beyond components to full submarine sections. The industrial base will need to meet current Navy goals and eventually surpass them to fulfill obligations, especially under agreements like the AUKUS pact with Australia.