Breaking News: General Dynamics to Build Two Additional Virginia-Class Submarines to Boost U.S. Navy Undersea Power.

On April 30, 2025, General Dynamics Electric Boat secured a substantial $12.4 billion (€11.5 billion) contract modification from the U.S. Department of Defense for the construction of two additional Virginia-class nuclear-powered attack submarines under the U.S. Navy’s Fiscal Year 2024 procurement plan. If contract options are exercised, the total value could rise to $17.2 billion (€16 billion). Beyond the submarine construction itself, the funding includes investments to enhance productivity at shipyards, strengthen the supply chain, and support the specialized workforce required to sustain America's undersea deterrence capability.
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USS Minnesota (SSN 783), a Virginia-class submarine, shown here at sea, is set to expand with two new vessels ordered by the U.S. Navy under a $12.4 billion contract announced on April 30, 2025. (Picture source: U.S. DoD)

This award arrives at a crucial moment for the Virginia-class submarine program, the foundation of the U.S. Navy's attack submarine force since its inception in the late 1990s. According to the latest data, 40 Virginia-class submarines have been procured through FY2024. However, due to labor shortages, supply chain disruptions, and industrial base limitations, the production rate has lagged behind the intended pace. Although the procurement target has been two submarines per year since FY2011, actual delivery has averaged just 1.2 units per year since 2022, creating a growing backlog of vessels that have been ordered but not yet completed.

As of early 2025, 24 Virginia-class submarines are in active service with the U.S. Navy, with at least 10 more under construction and four additional units in pre-production stages. The program’s goal is to increase the build rate to two submarines annually by 2028 and further to 2.33 per year, in part to replace three to five Virginia-class submarines expected to be transferred to Australia under the AUKUS defense pact (Pillar 1). To support this scale-up, the U.S. Congress has allocated billions of dollars to strengthen the submarine industrial base, including targeted funding for skilled labor development, digital engineering modernization, and supply chain resilience.

The Virginia-class represents a generational leap over the previous Los Angeles-class in both capability and survivability. These fast-attack submarines are designed for a broad range of missions, including anti-submarine warfare (ASW), anti-surface ship warfare (ASuW), land strike missions using Tomahawk cruise missiles, intelligence-gathering, and covert operations support. Each Virginia-class submarine measures 114.8 meters (377 feet) in length and displaces approximately 7,800 metric tons submerged (8,600 U.S. tons). They are powered by the S9G nuclear reactor, which uses a life-of-the-ship core that eliminates the need for mid-life refueling, thereby enhancing operational availability and reducing lifecycle costs.

Key technological innovations include the Large Aperture Bow (LAB) sonar array for superior undersea detection, fly-by-wire control systems for precise maneuverability, and an open-architecture combat system allowing for future modular upgrades. Most notably, Block V variants are equipped with the Virginia Payload Module (VPM), which adds four large-diameter payload tubes, boosting Tomahawk missile capacity from 12 to 40. This significant firepower expansion compensates for the phased retirement of the U.S. Navy’s Ohio-class guided missile submarines and ensures sustained long-range strike capability.

Constructed through a unique teaming arrangement between General Dynamics Electric Boat in Groton, Connecticut, and HII’s Newport News Shipbuilding in Virginia—the only two U.S. shipyards capable of building nuclear-powered submarines—the Virginia-class program is a central pillar of U.S. maritime power projection. However, the strain on this industrial base has revealed long-term vulnerabilities. These include shortages in highly trained nuclear-certified welders and engineers, limited capacity in key component suppliers, and infrastructure challenges at production facilities.

It is critical to understand that the Virginia-class submarine program is not merely a defense acquisition project but a strategic undertaking aimed at preserving the U.S. Navy’s undersea dominance amid rising global competition, especially in regions like the Indo-Pacific. It supports allied deterrence objectives, including through the trilateral AUKUS partnership, and strengthens the U.S. commitment to freedom of navigation and maritime security.

In essence, the Virginia-class submarine is more than a submarine; it is a platform that represents the technological edge, industrial resilience, and strategic foresight of U.S. naval power in the 21st century. The latest $12.4 billion award reinforces that commitment and marks a critical investment in the defense of the free and open maritime order.