Cleveland Lands A Submarine Repair Center

Happy Tuesday.

The build this week: The Navy's submarine fleet is getting a central parts shop, and it's going to Cleveland. President Trump said Monday night that the Department of War picked the city for a 46,000-square-foot center that, in his words, will make, repair and maintain key parts for nearly every submarine in the fleet.

Underneath: Raytheon won up to $6.3 billion to build SM-3 interceptors, Blue Origin committed $555 million to a satellite factory outside Austin, GlobalFoundries signed a $2 billion deal to make AI chip parts for TSMC in upstate New York, and Gallatin AI raised $50 million for military logistics software.

The Lead

The big picture: A submarine can't go back to sea until its parts do. Every overhaul pulls pumps, valves, motors and other components off the boat, and each one has to be repaired or replaced before the work is finished. In August the White House told the Pentagon to plan a repair center for that job. It would take in new parts and refurbish old ones for the yards that keep submarines running, from a central location near major road, rail and river routes.

Driving the news: On Monday night at a rally in Youngstown, President Trump said the Department of War has chosen Cleveland as the home of that Submarine Component Repair Center. He described a 46,000-square-foot facility that will make, repair and maintain key parts for "virtually all new and existing submarines." Jerry Hendrix, who runs the shipbuilding office at the White House budget office, said afterward that the center will support work on the backlog of depot maintenance for the Navy's fast-attack submarines, and he credited Sen. Jon Husted with making Ohio's case.

Why it matters: Northeast Ohio already builds for the submarine fleet, and the new center puts Navy repair work in the same region. In Barberton, just outside Akron, BWXT employs hundreds of people making heavy components for naval nuclear reactors. Directly across from that plant, the Barberton Community Foundation is planning The DEPOT, a training campus whose first phase is a 60,000-square-foot defense workforce center that will train workers for BWXT and offer Defense Department-certified courses to other defense manufacturers, tied to the Navy's Build Submarines workforce program.

What's next: The August memo asks for a formal plan by mid-November, which may include details on the facility’s address, cost, job count or opening date. Cleveland-based Bartlett Maritime has been pushing a plan to bring submarine repair work to potential sites in Lorain and Lordstown.

Cleveland is the first of two major siting calls underway by the Navy. The same August memo gave the Pentagon until mid-December to plan a fifth public shipyard with up to three new drydocks and a preference for sites near the Pacific Fleet. One site already being marketed for that mission is Mare Island in Vallejo, California, where owner the Nimitz Group has engaged JLL. Last month we talked with Tom Taylor, who leads JLL's aerospace and defense practice, about Mare Island's case to be that hub.

Read Inside Defense's report.

Read the August shipbuilding memo.

Defense & Space

• Raytheon won a contract worth up to $6.3 billion to build and support SM-3 Block IB missile-defense interceptors over five years, with production at Raytheon's sites in Tucson, Arizona, and Huntsville, Alabama.

• Lockheed Martin unveiled PAC-3 Edge, a longer-range Patriot interceptor for the Army's Future Interceptor program that Breaking Defense reports will be built on its existing PAC-3 line in Camden, Arkansas.

• Anduril unveiled Steelfin, a low-cost interceptor that Anduril aims to sell for about a third of the price of a PAC-3 MSE, with most of its subassemblies to be built at its Arsenal-1 plant in Ohio.

• CHAOS Industries showed its VESPID small interceptors and said it plans to build 12,000 a year at its site in El Segundo, California.

• Hanwha Defense USA delivered the Army's first Mobile Tactical Cannon, a self-propelled 155mm howitzer, as it plans an integration and test site in Opelika, Alabama.

• GM Defense agreed with the Army to add nearly 12,000 Infantry Squad Vehicles, up from an order of 649.

• McAlester Army Ammunition Plant will make and load explosive payloads for Perennial Autonomy's drones in Oklahoma as the Army modernizes its government-owned ammunition plants.

• WindBorne Systems won an Air Force contract worth up to $49 million for weather data from its fleet of about 700 long-flying balloons.

• The Coast Guard ordered its first four MQ-9B drones from General Atomics in a $247.8 million deal that includes ground stations.

• SpaceX launched 21 Northrop Grumman satellites for the Space Development Agency's military data network, Northrop's first operational batch for the program.

Semiconductors & Electronics

• GlobalFoundries signed a $2 billion, five-year deal to make silicon interposers for TSMC, a key part of AI chip packages, adding capacity at its fab in Malta, New York, with volume production starting to ramp in the first half of 2028.

• PsiQuantum received a conditional Pentagon loan commitment of up to $150 million to build out a 140,000-square-foot hub in Milpitas, California, for assembling and testing its quantum computers.

• Fujitsu agreed to set up a quantum computing research center in New Mexico, working with the University of New Mexico and New Mexico State in a state that is also home to Sandia and Los Alamos national labs.

• Green Circuits added a sixth surface-mount line in San Jose, raising capacity about 20% for its aerospace, defense and AI hardware customers, with a seventh line about to ship.

Manufacturing & Automation

• Blue Origin will invest about $555 million in a manufacturing campus in Hutto, Texas, where it plans more than 2,000 jobs, with help from an $18.2 million Texas Enterprise Fund grant.

• Hyundai Transys will spend nearly $560 million on a third plant and upgrades in West Point, Georgia, adding 320 jobs to make powertrains for hybrid vehicles.

• Nucor will spend $105 million to expand its utility structures plant in Crawfordsville, Indiana, adding 100 jobs at an average wage of $87,500 to make poles and towers for the grid.

• CP Industries will invest $21.7 million in McKeesport, Pennsylvania, more than tripling its output of composite gas cylinders and adding 78 jobs at a plant that has run there since 1897.

Energy & Materials

• Hertha Metals broke ground on a high-purity iron plant of about $100 million in Conroe, Texas, which will make about 10,000 tonnes a year of iron for steel and magnets starting in late 2027.

• Urenco USA started its sixth new enrichment cascade in Eunice, New Mexico, putting its expansion at the country's only commercial uranium enrichment plant three-quarters of the way done.

• PJM approved 2.1 gigawatts under its new fast-track interconnection process, including nearly 1.7 gigawatts of Engie battery storage in Ohio and Pennsylvania and a 455-megawatt uprate at LS Power's Hunterstown plant in Adams County, Pennsylvania.

• ContourGlobal started building Project Sterling in Mohave County, Arizona, a 509-megawatt solar plant with 1.4 gigawatt-hours of storage that will sell its power to Tesla.

Supply Chain & Freight

• The Port of Los Angeles handled 1,042,652 container units in September, the busiest month in its 118-year history, with loaded imports up 19%.

• The Port of Columbia got $1 million from Louisiana's FastSites program to finish funding a $7 million Union Pacific rail spur to its 400-acre site on the Ouachita River, with construction set to start in early 2027.

• Webco Industries is upgrading a port-owned steel facility at Port Muskogee, Oklahoma, on the state's inland waterway, adding 10 jobs.

Dealbook

• Gallatin AI raised a $50 million Series A backed by 8VC and Silent Ventures for military logistics software already in use with Army and Air Force units.

• Oratomic raised $475 million from investors including ARCH, Khosla, Index and Bezos Expeditions for the neutral-atom quantum computer the Pasadena, California, company expects to have ready by 2030.

• Stord secured a $400 million credit facility led by Citi to grow its network of nearly 100 fulfillment sites and its robotics lab in Atlanta.

• Voltus raised $225 million led by Generation Investment Management to grow the 8.5 gigawatts of distributed energy it manages toward 20 gigawatts by 2030.

• Pivot Energy closed a $173 million term loan for 51 community solar projects across six states, freeing its credit line for new builds.

• PCB Technologies agreed to buy Gorilla Circuits of San Jose for $120 million, giving the circuit board maker its first U.S. plant for defense work that has to be built onshore.

• VEIR raised a $110 million Series C co-led by Matter Venture Partners and Tyche Partners to expand manufacturing of the superconducting power cables it develops in Woburn, Massachusetts.

• Fortastra raised a $30 million Series A led by First In to expand testing and manufacturing of its maneuverable spacecraft in Torrance, California.

• Kapta Space raised a $24 million Series A led by Washington Harbour Partners to expand manufacturing of its space radar, which tracks moving targets on the ground, as the Seattle company works on classified contracts.

• Microchip bought VORAGO Technologies of Austin, Texas, adding radiation-hardened microcontrollers built for space and defense systems.

Back Thursday.