From policy to partnership: How the United States is opening a new era for shipbuilding

In recent years, global events have led to a renewed focus on supply chain resilience, economic security, and defense readiness — challenges that directly connect to maritime strength and industrial capacity. The U.S. is reasserting its manufacturing leadership by placing shipbuilding at the center of domestic industrial base renewal. This has taken the form of policy initiatives, public-private collaboration, and even international trade agreements. At its core, the U.S. is employing diverse innovation and investment strategies to reinforce shipbuilding and safeguard economic and national security for the decades ahead. 

2021-2023: Building industrial resilience through policy

The groundwork for revitalizing America’s shipbuilding capabilities began with policy shifts. The 2021 "Made in America" executive order prioritized domestic procurement, fostering a manufacturing environment incentivizing investment in U.S.-based production and infrastructure. This period marked a resurgence in bipartisan support for industrial resilience, reframing shipbuilding as essential to national security and economic independence. 

Another step taken during this period was the allocation of more than $703 million to improve port facilities through the Maritime Administration’s Port Infrastructure Development Program in 2022. The funding came as a result of the Bipartisan Infrastructure Law (BIL), also known as the Infrastructure Investment and Jobs Act (IIJA). Its aim was developing port and related freight infrastructure to accommodate the needs of modern marine freight vessels, marking another step in strengthening maritime capabilities and supply chain resilience.

Early 2025: Federal action and legislative momentum 

In March 2025, the federal government announced its plans to establish an office of shipbuilding and offer tax incentives for the sector. Shortly thereafter, it issued a “Maritime Action Plan” via executive order, allowing federal agencies to invest in logistics infrastructure and maritime manufacturing. These measures advanced a dual-use shipyard strategy to serve both national defense and energy transport.

Lawmakers then reintroduced the SHIPS Act, which focuses on U.S. shipbuilding and strengthening national and economic security by investing in U.S. vessels and the maritime industrial base. As part of the bill, funding is to be provided for a “strategic commercial fleet” of 250 U.S.-built, U.S.-flag vessels through guaranteed contracts, while also modernizing shipyard financing programs and boosting maritime workforce training.

June-July 2025: A renewed focus on public and private investment

In June 2025, the Office of the U.S. Trade Representative (USTR) proposed updates to industrial trade policies, specifically the mandate that 1% of U.S. LNG exports be carried on U.S.-flagged ships starting in April 2028, with a progressively higher rate needing to be transported on U.S.-built ships in subsequent years. This step is designed to kickstart the domestic manufacture of LNG vessels by creating predictable demand for U.S.-built LNG carriers, a field dormant for decades. 

Later, in July, the U.S. Department of Transportation announced $8.75 million in ship modernization grants, highlighting American efforts to grow its commercial maritime infrastructure leadership and underscoring the need for shipyards to support both economic and defense goals. 

In addition to regulatory momentum, the sector is set to be bolstered by a $150 billion fund pledged by the South Korean government. The announcement of the investment fund followed summit talks between South Korean President Lee Jae Myung and U.S. President Donald Trump, which included expanded cooperation in the shipbuilding sector. Going forward, Hanwha Philly Shipyard is expected to play a key role in collaboration between the two countries.

As the United States intensifies its efforts to rebuild its shipbuilding manufacturing base through policy and investment, private investment continues to play a key role in this endeavor. In July 2024, Hanwha Ocean signed a five-year Master Ship Repair Agreement (MSRA) with the U.S. Navy, and has since completed several MRO projects, validating the company's capabilities.

In December 2024, Hanwha acquired Philly Shipyard for $100 million. As the builder of more than half of all Jones Act-compliant large vessels since 2000, Philly Shipyard offers a storied shipbuilding legacy. Under Hanwha’s leadership, it now operates as Hanwha Philly Shipyard and anchors the Group’s broader expansion in both commercial and defense maritime markets. 

In August 2025, Hanwha announced a $5 billion infrastructure plan for Hanwha Philly Shipyard that will be dedicated to the installation of two additional docks and three quays to increase capacity and is reviewing plans for a new block assembly facility. In addition to its $5 billion commitment to build capacity, it will also train skilled shipbuilding personnel and bolster the shipbuilding industrial base. Hanwha’s planned expansion at Philly Shipyard, from roughly one ship annually to as many as 20, aligns directly with U.S. goals to restore competitive shipbuilding capacity and rebuild the industrial workforce.

Work at Hanwha Philly Shipyard has already begun, with Hanwha Philly Shipyard receiving the first U.S. order for a commercial LNG carrier in nearly 50 years in July. Hanwha Shipping, the U.S. subsidiary of Hanwha’s shipping arm, exercised its option on a second LNG carrier shortly thereafter, while also ordering 10 medium range (MR) oil and chemical tankers from Hanwha Philly Shipyard. The first MR tanker is expected to be delivered in 2029, representing not just the largest U.S. commercial vessel order in more than 20 years, but also the highest-value commercial order seen at U.S. shipyards. 

Projects like these highlight Hanwha’s commitment to strengthening U.S. shipbuilding capacity through Philly Shipyard, where production will span LNG carriers, naval modules and blocks, and, eventually, naval vessels. 

As the United States moves to strengthen its maritime industrial base, public and private investment are converging to expand capacity, modernize infrastructure, and secure critical supply chains. The shipbuilding sector has emerged as a focal point of bilateral cooperation, supported by incentives and strategic contracts that reflect long-term priorities. Hanwha’s role shows how private investment and allied cooperation can move U.S. maritime policy from ambition to execution, strengthening the U.S. industrial base and positioning the sector for sustained growth in the decades ahead.