Anduril Lands $2.9 Billion U.S. Navy Submarine Contract, Co-founder Joins Pentagon Weapons Task Force

In a significant development for the defense technology sector, Anduril Industries has secured a substantial contract valued at up to $2.9 billion with the U.S. Navy to bolster submarine production. This major award comes just days after Anduril co-founder Palmer Luckey was appointed to a new Pentagon initiative focused on future weapons capabilities, raising discussions about the growing influence of defense tech firms in Washington.

Video: Anduril secures $2.9 billion navy submarine shipyard contract (01:22)

The contract will see Anduril constructing components for the renowned Virginia-class submarine. To support this initiative, the company is also making a significant investment of $3.7 billion to establish a new, expansive shipyard at Sparrows Point, Maryland, near Baltimore. This facility, projected to begin operations in 2030, is expected to create approximately 3,100 jobs and span 2 million square feet. A smaller, 160,000-square-foot facility in Orange County, California, will also contribute, manufacturing specific parts like torpedo tubes.

Chris Brose, President and Chief Strategy Officer at Anduril, emphasized the strategic importance of the contract, stating, "This is about putting more food on the table and being able to meet the requirements that our country has to produce more submarines."

The announcement garnered attention from former President Donald Trump, who publicly thanked Luckey, calling him a "friend" and a "very brilliant guy" in comments made Tuesday.

Luckey's appointment to the Department of Defense's Project Meridian, an initiative aimed at identifying and developing capabilities for future U.S. conflicts, alongside other notable figures such as former House Speaker Newt Gingrich and SpaceX CEO Elon Musk, has sparked conversations about the intersection of private sector innovation and government defense strategy. Despite potential concerns about conflicts of interest, Pentagon Chief Technology Officer Emil Michael dismissed such notions, describing Project Meridian's diverse composition of academics, military veterans, and industry leaders as precisely what is needed to prepare for future challenges.

Anduril, historically known for its development of autonomous drones and crafts, is now making a notable push into conventional shipbuilding. "Our goal here is to be a critical, and hopefully, over time, much larger and growing part of the supply chain for our lead shipbuilders," Brose added. "And over time, we hope that'll grow up to very large sections of the ship."

Video: Pentagon's Emil Michael on the launch of 'Project Meridian' (03:45)

The Virginia-class submarine program is currently dominated by established players General Dynamics Electric Boat and Huntington Ingalls Industries, with General Dynamics recently securing a $76.6 billion Navy award for submarine construction. Anduril's entry into this segment signifies a potential shift in the defense industrial landscape.

Correction: The headline has been updated to accurately reflect Palmer Luckey's involvement in the Pentagon's Project Meridian.