Fox News correspondent Brooke Taylor reports on Vice President JD Vance’s efforts to boost U.S. shipbuilding in Texas. This move aims to enhance American maritime capabilities and counter China’s dominance in global shipping and naval industries. The report aired on ‘Special Report.’
The Trump administration has engaged a defense technology giant in a $6.6 billion project to accelerate submarine production. The U.S. seeks to compete with China’s extensive shipbuilding capacity, currently outpacing America’s.
This initiative will see the involvement of a Silicon Valley-style manufacturer to address one of the Pentagon’s struggling industrial sectors. The target is to produce two Virginia-class attack submarines annually, a rate they have been failing to meet.
Anduril is set to construct a shipyard exceeding 2 million square feet at Sparrows Point, near Baltimore. The facility will focus on manufacturing critical submarine components, eventually expanding to create larger sections. An official stated the new shipyard could supply around 9 million labor hours annually, boosting submarine production by approximately 15%.
President Donald Trump plans to visit the Baltimore site for a formal announcement of this initiative, joined by Anduril leaders.
Navy Secretary stresses urgency for shipyards to ‘act like we’re at war’ as China’s AI-enabled fleet advances.
The deal with Anduril involves a substantial investment to increase the Navy’s capacity to produce the Virginia-class submarines. Despite a current output of 1.3 submarines yearly, the Navy aims for two per year by 2032. Presently owning 26 Virginia-class submarines, the Navy expects to add two more next spring.
Anduril plans significant investments, totaling $3.7 billion in capital for developing the facility, workforce, and manufacturing capabilities. Additional Navy expenditure may reach $2.9 billion for the production outcomes.
This collaboration reflects an effort to remedy production issues through a commercial model. Anduril will invest independently to enhance submarine production, with the Navy purchasing the successful results. An industry official clarified that the government buys outcomes from this venture, not reimbursing investments.
Emerging technologies have prompted Army leaders to caution troops about relying solely on AI for battlefield victories.
Anduril’s growing ties with the Pentagon are evident as they participate in Project Meridian, alongside figures such as Elon Musk and former House Speaker Newt Gingrich. This project studies future warfare and necessary military technology for the U.S.
The arrangement allows Anduril’s founder, Palmer Luckey, to contribute to recommendations concerning the Pentagon’s tech requirements. While Project Meridian lacks procurement authority, safeguards aim to prevent conflicts of interest as Anduril expands its defense-related business.
Currently working with General Dynamics Electric Boat and HII’s Newport News Shipbuilding, Anduril initially produces components such as torpedo tubes, which are crucial yet bottlenecked in submarine construction.
Efforts to produce these components have started in California, with plans to relocate production to the new Baltimore shipyard, named Arsenal-2. The goal is to progress from individual components to complex modules and larger submarine sections.
The need for increased production capacity is crucial for expanding the maritime and submarine industrial base in the U.S. Efforts will center around software, automation, and digital manufacturing to simplify traditionally complex shipbuilding tasks that require less experience.
Arsenal-2 aims to create 3,100 direct and an additional 11,000 indirect nationwide jobs. Anduril plans to launch operations at this facility by 2030, already beginning some component production in California.
Certification and safety procedures for nuclear submarine construction must be met, with assurances from Anduril to demonstrate compliance. As experience increases, production will shift from components to more advanced technologies.
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