SPARROWS POINT, Maryland — Baltimore will be the location of a new military shipyard, President Donald Trump announced on Tuesday. The former Sparrows Point industrial area outside Maryland's most populous city is being revitalized with a $3.7 billion investment from the defense technology firm Anduril Industries and a $2.9 billion investment from the U.S. Navy.

Arsenal-2, as it's called, will build autonomous submarines, torpedo tubes and critical components for attack submarines.

"Since World War II, there's been nothing like what we're doing today," Trump said at Sparrows Point on Tuesday. "It's one of the biggest and most significant shipyards, very soon, anywhere in the world."

The last major shipbuilding effort in the United States was in the 1940s, when the U.S. put up dozens of shipyards as part of an emergency shipbuilding program to supply Allied forces with cargo vessels that carried food, fuel and troops.

Anduril Industries co-founder and CEO Brian Schimpf posted on X on Tuesday: "The United States has rebuilt its industrial strength before. We must do so again. Arsenal-2 is Anduril's commitment to that future — and to America's ability to refit the fleet for the century ahead."

In addition to the submarine investment, Anduril posted on X on Tuesday that the U.S. Army had awarded it a contract worth up to $1.8 billion over the next five years to scale a next-generation command-and-control center.

Last week, the Department of Defense appointed Anduril co-founder Palmer Luckey to a Pentagon weapons advisory group along with tech billionaire Elon Musk and former GOP Speaker of the House Newt Gingrich.

Trump's announcement comes less than a day after he suggested Iran "take out" Los Angeles or San Diego. The Los Angeles area is home to Anduril Industries, the multi-billion-dollar defense tech company that just invested in Sparrows Point, while San Diego is home to one of the country's largest and most important naval hubs.

The president praised recent investments in other shipbuilding projects around the United States, including a $5 billion commitment from the South Korean company Hanwa to upgrade infrastructure at a Philadelphia shipyard and a $3.2 billion investment from Texas-based Saronic Industries to build Port Alpha in Brownsville, Texas.

"It will be a golden age of shipbuilding, and the workers at Arsenal-2 and Sparrows Point will be leading the way," Trump said.

The Arsenal-2 project will create over 3,100 jobs in Maryland and support another 11,000 across the nation, he said.

While the Arsenal-2 manufacturing project received bipartisan praise for creating manufacturing jobs, it drew criticism from Maryland's Democratic Gov. Wes Moore, who said Tuesday he had been working with Anduril for a year to bring the project to the Baltimore area but was blocked from speaking at the event with Trump.

Calling Arsenal-2 "part of the industrial backbone of the 21st century of the United States Navy," Trump said American taxpayers will receive a 40% stake in the new shipyard to ensure its continued success.

Lawmakers, including those on the Senate Armed Services Committee, have expressed concerns about the U.S. government playing an investment role in defense companies it also regulates. In July, the Senate version of the National Defense Authorization Act specifically capped U.S. government equity at 40% to ensure the Defense Department wouldn't completely nationalize private contractors like Anduril.