Anduril gets $2.9B Navy contract after Luckey joins Pentagon group
Defense tech firm Anduril has secured a $2.9 billion U.S. Navy contract to increase submarine production. This follows the appointment of co-founder Palmer Luckey to a Pentagon task force, sparking discussions regarding the influence of private defense contractors in government.
Why it matters
The deal highlights the growing reliance of the U.S. military on private sector innovation and the potential for conflicts of interest as tech leaders take on advisory roles in defense policy.
Anduril won an up to $2.9 billion contract with the U.S. Navy on Tuesday to boost submarine production, days after co-founder Palmer Luckey was named to a Pentagon future weapons task force.
The company is also investing $3.7 billion to scale a new shipyard at Sparrows Point, outside Baltimore, Maryland, slated to start operations in 2030 and create about 3,100 jobs.
Anduril said the 2 million-square-foot facility will build components for the Virginia-class submarine. Some parts, including torpedo tubes, will be manufactured at a 160,000-square-foot facility in Orange County, California.
"This is about putting more food on the table and being able to meet the requirements that our country has to produce more submarines," said Anduril President and Chief Strategy Officer Chris Brose in a press briefing.
President Donald Trump thanked Luckey by name in comments Tuesday afternoon to mark the investment, calling him a "friend" and "very brilliant guy."
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