Leonardo DRS Expands Naval Power Capacity with $140M Charleston Facility

Event summary

  • Leonardo DRS opened a 140,000-square-foot naval power and propulsion facility in Charleston, SC, to support U.S. Navy submarine and shipbuilding programs.
  • The facility will manufacture, assemble, integrate, and test large components for naval electric power and propulsion systems, including those for the Columbia-class submarine program.
  • The investment aligns with the Department of War's push to strengthen the defense industrial base and increase production capacity.
  • The facility will support both electric propulsion and naval steam turbine systems, addressing growing demand for power-intensive naval systems.

The big picture

The new facility reflects Leonardo DRS's strategic response to the U.S. Navy's need for scalable integrated power architectures to support advanced weapons, sensors, and computing systems. This investment underscores the growing importance of domestic production capacity in the defense sector, particularly as geopolitical tensions drive demand for reliable, high-performance naval technologies. The facility's focus on both electric and steam turbine systems positions Leonardo DRS to capitalize on evolving fleet requirements.

What we're watching

Execution Risk
Whether Leonardo DRS can meet the U.S. Navy's schedule reliability demands for next-generation surface combatants and submarines.
Industry Dynamics
How the facility's expansion will position Leonardo DRS against competitors in the naval power and propulsion market.
Regulatory Headwinds
The pace at which defense industrial base expansion initiatives will drive further investments in domestic manufacturing.