US firm gets $2.9bn sub deal after boss joins war study with Musk

Anduril said it would invest $3.7bn to develop shipyard that would build submarine parts. Save Share Defence technology firm Anduril said it will invest $3.7bn to develop a new shipyard in the US state of Maryland and will build critical components for the United States Navy’s Virginia-class submarines, as Washington seeks to bolster its maritime defence capabilities. California-based Anduril Industries confirmed on Tuesday it would invest in the submarine production plant, dubbed Arsenal-2, and will receive a $2.9bn US navy contract to manufacture submarine parts. US President Donald Trump was set to unveil the project and announce a massive naval shipyard expansion in Baltimore, Maryland, on Tuesday afternoon. Anduril is a defence technology firm whose co-founder, Palmer Luckey, is heading a new Defense Department project alongside technology billionaire and former top Trump adviser Elon Musk. Luckey and Musk were tapped by the Pentagon to lead Project Meridian, a newly-disclosed initiative focused on the future of warfare, including autonomous, AI-powered and maritime military capabilities. Valued at nearly $117bn, Anduril specialises in uncrewed underwater vehicles and ocean vessels – or naval drones – designed for the US military and its allies. The initiative was announced at Defense Secretary Pete Hegseth’s State of the Forceaddresslast week in Virginia, part of a 120-day study aimed at identifying new technology needed for next-generation US battlefield supremacy. The investment is the latest in a series of broaderstepsby the Pentagon toacceleratenaval shipbuilding and weapons production,spurredby the war on Iran and other regionalconflictsthat continue to threaten global oil traffic while highlighting the critical role of maritime power. Anduril, founded in 2017 by Luckey, is best known for its military autonomous systems, drones ‌‌and software. The startup has, however, expanded beyond drones into maritime and undersea systems, as well as command-and-control software designed to connect military ‌‌sensors, ‌‌weapons and other systems. The Maryland facility will manufacture torpedo tubes and larger hull components for the US navy’s upgraded Virginia-class fast attack submarines, which the navy is renovating to carry up to 40 Tomahawk missiles each. While nuclear-powered, the warships are not part of the US’s strategic nuclear deterrent system. The facility is expected to generate 3,100 jobs while supporting over 11,000 indirect roles....