Anduril wins $2.9 billion submarine parts contract, announcement follows Musk-Luckey joint study
Photo: Collected
As part of an initiative to boost global maritime defence capability, defence technology company Anduril Industries has won a $2.9 billion contract to build key components for the US Navy’s ‘Virginia-class’ nuclear submarines. At the same time, the California-based company has announced an investment of $3.7 billion to build a new shipyard named ‘Arsenal-2’ in the US state of Maryland.
US President Donald Trump is scheduled to inaugurate this major project and formally announce the expansion of the navy’s shipyards in Baltimore, Maryland, on Tuesday afternoon. Recently, Anduril co-founder Palmer Luckey and tech billionaire and former top Trump adviser Elon Musk were put in charge of a new initiative of the Department of Defense. Under this initiative, named ‘Project Meridian’, work is being done on future warfare strategies through autonomous systems, artificial intelligence (AI) and maritime technology. The initiative first came to light publicly in US Defense Secretary Pete Hegseth’s ‘State of the Force’ speech in Virginia last week. It is part of a 120-day study to ensure US supremacy on the battlefields of the future.
The global oil transport system has come under risk because of the Iran war and various regional conflicts. In this situation, Anduril’s contract is part of the wide-ranging steps the Pentagon has taken to boost maritime military capability and speed up ship and weapons production.
Anduril, with a market value of about $117 billion, was founded in 2017 by Palmer Luckey. Known for making autonomous military systems, drones and software, the company has recently been putting emphasis, alongside drones, on building sea-going uncrewed vehicles, naval drones and command-and-control software for coordinating military sensors and weapons.
At the new industrial hub under construction in Maryland, torpedo tubes and large sections of the main hull of the US Navy’s modernised ‘Virginia-class’ fast-attack submarines will be built. After the upgrade, each submarine of this class will be able to carry up to 40 Tomahawk cruise missiles. Although nuclear-powered, these submarines are not part of the United States’ strategic nuclear deterrent.
Anduril said the new factory will directly employ 3,100 people. Beyond this, there is a possibility of more than 11,000 additional jobs being created indirectly.
At present, 26 Virginia-class submarines are active in the US Navy. Two more are due to join the fleet by 2027. However, according to Pentagon and navy data, the country’s existing shipyards are unable to meet the target of building at least two submarines a year because of supply chain disruptions and a shortage of skilled workers. At present, this production rate has fallen to just 1.1 to 1.2 a year.
Anduril President Chris Brose told journalists on Tuesday that the main goal of the new shipyard in Maryland is not to build any new drone platform; rather, it is to prioritise production of the components needed for Virginia-class submarines. In his words, the government is essentially buying the products made from the infrastructure in which the company has invested.
Source: Al Jazeera
