Anduril Industries is moving closer to establishing a major manufacturing hub for autonomous surface vessels in Baltimore County, with Sparrows Point emerging as the leading site for the defense technology company’s drone-boat production.

The Southern California-based company has signed a memorandum of understanding with the operator of the Sparrows Point industrial complex, according to people familiar with the matter cited by The Wall Street Journal.

The investment, which could reach hundreds of millions of dollars, underscores growing demand for unmanned maritime systems as the U.S. military expands its focus on autonomous naval capabilities.

Under the proposed plan, Anduril would convert part of the 3,300-acre waterfront site into a production campus for unmanned surface vessels, with facilities for both manufacturing and on-site testing. The property’s deep-water port access makes it well suited for building and launching autonomous vessels.

Maryland state officials, including the governor’s office, have participated in discussions as the parties explore potential incentive packages to help offset development costs.

While negotiations are in the final stages, no lease has been signed and the deal remains subject to completion. People familiar with the discussions cautioned that the talks could still break down before an agreement is finalized.

Last month, it was reported that Anduril Industries is exploring a new funding round that could value the defense technology startup at roughly $100 billion, a valuation that would place the company alongside some of the largest U.S. defense contractors.

The discussions come roughly two months after Anduril raised $5 billion in a funding round that valued the company at $61 billion. The round was led by Thrive Capital and Andreessen Horowitz.

Founded by Palmer Luckey, Anduril has attracted investor interest with its focus on autonomous defense systems, including drones, AI-powered software and missile technologies. The company has rapidly expanded its product lineup as governments increase spending on next-generation military capabilities.

Anduril reported $2.2 billion in revenue for 2025 and said it continued to grow its workforce. 

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