Federal News
Navy Launches $2.4B Automated Submarine Factory in Alabama
March 23, 2026
The U.S. Navy has partnered with Hadrian Automation to open a $2.4 billion advanced manufacturing facility, known as Factory 4, in Cherokee and Muscle Shoals, Alabama. This public-private partnership combines $900 million in Navy funding with $1.5 billion in private capital to develop AI-powered, highly automated factories that will mass-produce components for Virginia-class and Columbia-class submarines. The initiative addresses critical skilled labor shortages by automating up to 80% of manufacturing processes, accelerating submarine production, and creating approximately 1,000 manufacturing jobs. The facility represents a strategic investment to revitalize the maritime industrial base, reduce production bottlenecks, and enhance national defense readiness.
- Why this matters: Procurement professionals should note the scale and scope of this $2.4 billion public-private partnership, which signals increased demand for advanced manufacturing technologies and integrated production systems in naval shipbuilding.
- The Navyβs focus on automation and AI integration to overcome workforce challenges indicates growing opportunities for contractors specializing in advanced manufacturing, robotics, and AI-driven production.
- The facilityβs location in Alabama and its role in supporting Virginia- and Columbia-class submarine programs highlight regional industrial base revitalization efforts and potential subcontracting or supply chain opportunities.
- Organizations involved in workforce training and industrial modernization may find collaboration prospects as the Navy seeks to expand production capacity and accelerate delivery timelines.
We call this distributed shipbuilding, and itβs a key tenet of our plan to achieve required shipbuilding production rates. These factories of the future might be several states away from the yards where the ships are ultimately built, but by taking on this work they reduce bottlenecks, having a profound effect on the speed of delivery.
— Jason Potter, Performing the Duties of Assistant Secretary of the Navy for Research, Development & Acquisition (ASN RDA)
This is not just another factory. This is a different model. It is an investment in the American worker in Alabama communities and in the future of American security.
— John C. Phelan, Secretary of the Navy
We were at a dangerously low level of defense spending. Weβre at the beginning of a process to rebuild our defense industrial base, and itβs going to take partners like this to get us where we need to be.
— Mike Rogers, U.S. Representative
Agencies
U.S. Navy, U.S. Senate, U.S. House of Representatives, State of Alabama, Shoals Economic Development Authority
Vendors
Hadrian Automation, Hadrian, AE Industrial Partners, AE Shoals
Contracts
$900 million, $2.4 billion
Locations
Sources
- Navy bets $900M on automated factories to boost submarine production - Defense One · Defense One · Mar 20
- Navy, Hadrian launch partnership, open facility to build submarine parts - Breaking Defense · Breaking Defense · Mar 20
- Hadrian Launches AI-Powered Maritime Industrial Base Factory, Starts with Sub Focus - Defense Daily · Defense Daily · Mar 20
- $2.4 billion project: One of the largest investments in U.S. maritime history is opening in Alabama - al.com · AL.com · Mar 21
- Advanced Shipbuilding 'Factory of the Future' Opens in Alabama > United States Navy > display-pressreleases · NAVY · Mar 21