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California Forever Loses its $3.2B Shipyard Project

July 16, 2026

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Run of ShowSaronic’s autonomous vessel Marauder | @saronic

California Forever loses its Shipyard project

California Forever lost a proposed $3.2 billion shipyard project from defense startup Saronic after the company chose the Port of Brownsville, Texas, over Solano County.

The automated shipyard, known as Port Alpha, is expected to create roughly 10,000 permanent jobs along with thousands of union construction jobs. Supporters say California’s lengthy approval process ultimately cost the state one of the first marquee tenants that California Forever had pointed to as evidence its planned city could anchor a new era of American shipbuilding.

Joshua Arce, executive director of the California Alliance for Jobs, said California failed to move with the urgency the project required. “While Texas moved quickly and aggressively, California could not provide the clear, expedited approval process needed,” he said, calling the decision “an enormous loss for Solano County, California workers, and our state’s manufacturing economy.” Earlier this year, California Forever signed a 40-year construction labor agreement covering 70,000 acres, and labor groups later backed legislation to fast-track environmental review and permitting for the proposed shipyard. That legislation has yet to advance.

Instead, Texas approved a $211 million tax abatement package in June to secure Saronic’s investment at Brownsville, roughly 20 miles from Starbase. Labor leaders say they warned that without expedited approvals the project would leave the state. And that is exactly what happened. A project insider told the San Francisco Chronicle that California Forever itself remains on track, but acknowledged that losing a major defense contractor sends a powerful signal about the state’s ability to compete for large industrial investments.

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SF Standard: California Forever loses $3.2 billion shipyard contract due to CA approval delays, defense startup Saronic picks Texas instead