Anduril’s $6.6 Billion Submarine Project Puts HD Hyundai Partnership in Focus
Anduril’s planned submarine-component shipyard in Maryland is drawing attention to its existing partnership with HD Hyundai, although the Korean shipbuilder says no specific talks have taken place about joining the project.
A $6.6 billion US submarine manufacturing initiative led by defense technology company Anduril Industries is drawing renewed attention to its partnership with South Korean shipbuilder HD Hyundai. The overlap between Anduril’s new production plans and HD Hyundai’s naval and smart-shipyard expertise has raised the prospect of broader cooperation, but the Korean company says no specific discussions have taken place about its participation in the project.
Anduril announced a $3.7 billion private investment in Arsenal-2, a software-defined shipyard planned for Sparrows Point, Maryland. Together with a US Navy contract valued at up to $2.9 billion, the initiative represents as much as $6.6 billion in investment and contract value. Operations are scheduled to begin by 2030.
The facility is intended to manufacture critical components for Virginia-class nuclear-powered submarines, including torpedo tubes and large structural assemblies. Those components would be supplied to General Dynamics Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding, the two yards that build the submarines.
Anduril plans to organize fabrication, outfitting, material handling, inspections and documentation through a unified software-driven manufacturing system. The company expects artificial intelligence, automation and integrated software to ease production bottlenecks and speed up component output.
HD Hyundai is attracting attention as a potential collaborator because it already works with Anduril and has experience in both submarine construction and digitally managed shipyards. The companies formed a strategic partnership in 2024, combining HD Hyundai’s shipbuilding capabilities with Anduril’s AI and autonomous systems to pursue naval opportunities in South Korea and the United States.
Their cooperation later expanded into jointly designed dual-use autonomous surface vessels for commercial and defense applications. In April, the two companies also widened their partnership to advanced unmanned underwater vehicles. HD Hyundai has identified AI-powered smart shipyards as another possible field for cooperation as South Korea and the United States seek closer shipbuilding ties.
For now, however, the possibility of HD Hyundai joining Arsenal-2 remains speculative. A company official said the current partnership with Anduril centers on unmanned underwater vehicles. HD Hyundai would review future proposals related to the new initiative, but no concrete talks about participation have occurred.
The distinction is important for investors and the defense industry. Existing technical cooperation may give the two companies a foundation for further work, but the newly announced US submarine project does not yet include a disclosed role for HD Hyundai.