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The formerly struggling Philly Shipyard is about to get so much manufacturing business, it will have to expand its capacity in the Philadelphia region (The Wall Street Journal, subscription).

What’s going on: Acquired by South Korean conglomerate Hanwha in 2024, the yard “is central to President Trump’s goal of reviving American shipbuilding and enlarging the U.S. Navy’s fleet. … Hanwha is already in active conversations with the Trump administration, and primarily the Pentagon, for potential deals to make surface, subsurface and unmanned vessels.”

• The company has also promised to invest $5 billion into upgrading the yard and hiring staff for it.

The problem: At issue, however, is a lack of space at the Philly Shipyard. To accommodate the planned uptick in production volume, Hanwha is in discussions with officials to expand capacity for building and storage in the Philadelphia area.

• “That includes potentially gaining access to the unused or underutilized docks at the sprawling Philadelphia shipyard that Hanwha doesn’t own” and docks at other shipyards.
• Hanwha is also considering purchasing another shipyard in the area in the coming years.

What could be in the works: Hanwha’s preexisting orders of almost 20 ships—which include commercial vessels and some for the Transportation Department—could also comprise a nuclear-powered submarine for the South Korean navy.

A new partnership: On Thursday, Hanwha Defense USA, the company’s American arm, announced a partnership with Rhode Island–based HavocAI, which specializes in software for sea drones, to develop 200-foot autonomous surface vessels at the Philly Shipyard (gCaptain).

• The cooperation between the two firms is in line with the priorities of the administration, which last year set aside around $3 billion for small and medium surface sea drones, according to the Journal.