Nuclear-powered submarines are one of the main reasons the US Navy can claim maritime superiority over China. But it’s a slim advantage, and it’s slipping because of subpar production.

The White House announcement last week to jointly invest $6.6 billion with startup Anduril Industries Inc. to manufacture submarine components is part of an effort to bolster the supply chain and increase output. But the government should go even further to inject competition in the industry; it should undo a three-decade-old decision that called for the country’s only two manufacturers of submarines to work together.

The partnership dates back to after the collapse of the Soviet Union in 1991, when the US Navy began shrinking its fleet, mothballing shipyards and closing training stations to cash in on a so-called peace dividend. The Navy supported joint submarine production by General Dynamics Corp.’s Electric Boat and Huntington Ingalls Industries Inc.’s Newport News Shipyard to keep their manufacturing capabilities from disappearing amid low demand.

This arrangement has outlived its purpose in a world where China is rapidly building up its military, especially its naval force. China’s fleet is expected to increase to 435 ships by 2030, while the number for the US will fall slightly to remain under 300. The submarine-production partnership made sense when the US fleet was shrinking, but now it must grow.

General Dynamics and Huntington have failed to keep pace with the two Virginia-class attack subs a year that Congress has been funding since fiscal year 2011. The two together produce an average of about 1.2 boats annually, according to the Congressional Research Service. They’re also about a year and a half behind on the first delivery of the next-generation Columbia-class ballistic missile sub.

The companies have blamed the delays on the pandemic decimating the supply chain after veteran workers left the industry, including at many small machine shops that make highly specialized parts. But even as those labor shortages heal, there remains the structural problem of team production that has resulted in a mostly shared supply chain and delays when one partner falls behind on the section it’s building.

The agreement with Anduril will resurrect a Maryland steel plant to make component parts for submarines. The startup can, no doubt, bring innovation and sorely needed capacity to the supply chain. It even aspires to building full sections of subs in the future.

But don’t expect Anduril to be the silver bullet that fixes submarine production rates. For that to happen, we need to rethink the current manufacturing arrangement, starting with transitioning General Dynamics and Huntington back to building complete subs themselves. This would inject some competition back into the industry, driving more efficiency and expanding the base of suppliers.

The importance of keeping ahead on submarine design and production can’t be overstated. The Navy’s deal with Anduril is a positive step for the supply chain, but what’s sorely needed is the competitive energy that can lead to greater efficiency and more timely production. The days when it made sense to cash in on the peace dividend and have the two sub manufacturers team up are long gone.