VP Vance Promotes US Shipbuilding
Fox News correspondent Brooke Taylor reports on Vice President JD Vance’s initiative to bolster U.S. shipbuilding in Texas. The focus is on expanding American maritime capabilities to counter China’s influence in global shipping and naval industries.
Investment in Expanding Submarine Production
The Trump administration is investing $6.6 billion in an effort to accelerate the production of submarines. This initiative aims to address the U.S. struggle in keeping pace with China’s extensive shipbuilding capacity. The plan includes involving a Silicon Valley-style manufacturer in the Pentagon’s industrial base, which has faced challenges in meeting production goals of two Virginia-class attack submarines annually.
Construction of New Shipyard
Anduril, a company at the core of this plan, will construct a more than 2-million-square-foot shipyard at Sparrows Point near Baltimore. The shipyard will manufacture critical submarine components, aiming to increase production capacity significantly. The new facility could potentially add approximately 9 million labor hours annually, representing a 15% increase in submarine production capacity.
Presidential Announcement and Goals
President Donald Trump is scheduled to visit the shipyard to announce the initiative alongside Anduril leadership. The investment seeks to address a historical issue where shipyards have been delivering roughly 1.3 Virginia-class submarines annually, falling short of the target. The Navy projects achieving a production rate of two submarines per year by 2032 and plans to add two more submarines in the coming spring.
Anduril’s Strategic Investment
For this submarine project, Anduril plans to invest $3.7 billion of its own capital into the facility, workforce, and manufacturing capacity. The Navy may spend up to an additional $2.9 billion on the production output. This arrangement signifies a commercial approach to revamping submarine production, placing the onus on Anduril to front the capital investment, with the Navy purchasing the successful output.
An industry official highlighted, “We feel the government is buying the results of what we’re able to produce.”
Project Meridian and Technological Advancements
Anduril’s involvement comes shortly after War Secretary Pete Hegseth initiated Project Meridian. This study involves figures like Palmer Luckey, Elon Musk, and Newt Gingrich to explore future warfare technologies. While Project Meridian itself does not have procurement authority, it positions Luckey to influence technology recommendations for the Pentagon.
Production of Strategic Components
Anduril will collaborate with General Dynamics Electric Boat and HII’s Newport News Shipbuilding. Initially, the company will produce components that currently limit Virginia-class submarine construction, like torpedo tubes. Production of torpedo tubes has already begun in California, with plans to shift to Baltimore once the new shipyard, Arsenal-2, becomes operational.
Automation and Job Creation
Arsenal-2 is being designed around software, automation, and digital manufacturing to simplify complex shipbuilding tasks. This initiative is expected to create 3,100 direct jobs and another 11,000 indirect jobs across the nation. Anduril anticipates the Baltimore facility will begin operations around 2030, although production of certain components is already underway in California.
The approach will still need to undergo certification and meet safety requirements specific to nuclear submarine construction before advancing to complex modules and large sections.

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