US Wind Abandons Sparrows Point Steel Plant for Anduril Submarine Facility

US Wind has given up its lease at the Sparrows Point site to Anduril Industries, ending plans for a steel fabrication facility intended to support offshore wind turbine production. The Baltimore-based company, which is developing a major wind project off Ocean City, relinquished its 90-acre lease at the Tradepoint Atlantic industrial hub, a site it had targeted since 2016 and formally agreed to develop in 2021.

The Tradepoint Atlantic site in Sparrows Point had been expected to fabricate steel components for wind turbines, including towers and monopiles. US Wind planned to invest through its Maryland projects and partnered with Haizea Wind Group in 2023 to develop and operate the facility, which was expected to create hundreds of manufacturing jobs. The company's CEO, Jeff Grybowski, stated that "the company’s offshore wind plans, like other US projects, have been delayed by legal disputes and uncertainty created by federal agencies."

Anduril to Build Submarine Plant with Major Federal Backing

Anduril Industries will construct the Arsenal-2 facility at Sparrows Point to manufacture Virginia-class submarine components, backed by a $2.9 billion Navy contract and $3.7 billion in private investment. The defense contractor will assume the entirety of US Wind's former 90-acre lease plus an additional 97 acres at the old shipyard, covering a total 187-acre site.

The planned facility will span more than two million square feet. Initial operations are expected to begin in 2030, eventually creating 3,100 permanent positions. Anduril will receive about $500 million in county and state subsidies, and the site is projected to pay $312 million in wages annually.

Offshore Wind Project Faces Federal Headwinds Despite State Approvals

US Wind’s Maryland Offshore Wind Project comprises up to 2 GW of planned capacity off the coast of Ocean City through its MarWin and Momentum Wind phases. While the project has secured Maryland Offshore Renewable Energy Credits and received its federal Construction and Operations Plan approval from the Department of the Interior in 2024, its future is uncertain.

The Trump administration said in 2025 that it planned to seek the revocation of that federal approval. The town of Ocean City had also challenged the permit shortly after it was granted at the end of President Joe Biden’s term.

Job Promises Shift from Wind to Defense as Local Leaders Respond

The strategic shift redirects promised employment from renewable energy to the defense sector. Where US Wind's steel plant was expected to create 500 permanent jobs, Anduril’s Arsenal-2 promises 3,100 permanent new positions. President Donald Trump visited Baltimore County on Tuesday, celebrating Anduril's arrival and calling founder Palmer Luckey a 'friend'.

Industry and environmental leaders reacted to the change. Rebecca Rehr, director of climate policy and justice at the Maryland League of Conservation Voters, said Maryland faces rising energy demand and electricity bills and that the Trump administration doesn’t see the value across the supply chain for the clean energy industry. In contrast, Liz Burdock, president of the Oceantic Network trade group, said mobilizing the existing supply chain helps businesses find their next customer while advancing homegrown offshore energy.

Funding Withdrawal and Lease Transfer Mark End of Wind Steel Ambitions

The loss of federal funding was a final blow to the wind manufacturing plans. Last year, the Trump administration pulled back $47.4 million in grant funding awarded during the Biden administration for the Sparrows Point Steel marshalling port project. Although US Wind said at the time it planned to move forward despite the funding pullback, the company has now transferred the lease.

US Wind spokesperson Dori Henry said the steel plant is not necessary for its offshore project to move forward. CEO Jeff Grybowski said the company was therefore shifting its focus to supporting Anduril’s development at Sparrows Point. The Arsenal-2 facility is expected to begin initial operations in 2030 and will manufacture components and large assemblies for Virginia-class submarines under a $2.9 billion Navy contract.