IperionX Awarded $47.1M by the U.S. DoD to Secure U.S. Titanium Supply Chains

Rhea-AI Summary

IperionX (NASDAQ: IPX) has been awarded a $47.1 million contract by the U.S. Department of Defense (DoD) to strengthen domestic titanium supply chains. The strategic partnership represents a total investment of $70.7 million over two years, combining DoD funding with IperionX's contribution.

The initial phase includes $5 million from DoD and $1 million from IperionX to advance the Titan Critical Minerals Project in Tennessee to 'shovel-ready' status. The remaining $42.1 million will support vertical integration and increased production capacity at IperionX's Titanium Manufacturing Campus in Virginia.

IperionX's proprietary technologies, HAMR™ and HSPT™, offer a pathway to produce low-cost, high-performance titanium, addressing the current import-dependent supply chain for titanium materials critical to aerospace, defense, automotive, and other industries.

Positive

• Secured major $47.1M DoD contract for titanium production
• Total project investment of $70.7M including company contribution
• Initial $5M funding already obligated by DoD
• Potential for additional $42.1M in DoD funding over contract duration
• Strategic position as key DoD partner for domestic titanium supply

Negative

• Requires $1M company contribution for initial phase
• Remaining $42.1M funding not yet obligated by DoD

Insights

Defense Industry Analyst

The $47.1 million DoD contract awarded to IperionX represents a transformative development in the U.S. titanium industry, with far-reaching implications for both national security and commercial markets. This strategic investment, part of a larger $70.7 million program, addresses a critical vulnerability in the U.S. defense industrial base.

The funding structure is particularly noteworthy: the initial $5 million obligation focuses on advancing the Titan Critical Minerals Project to 'shovel-ready' status, while the remaining $42.1 million is earmarked for scaling production capacity. This phased approach demonstrates the DoD's commitment to establishing a comprehensive domestic titanium supply chain.

IperionX's proprietary HAMR™ and HSPT™ technologies represent a significant technological leap over the traditional Kroll process, which has dominated titanium production since the 1940s. These innovations could potentially disrupt the global titanium market by:

• Reducing production costs significantly, making titanium more accessible for commercial applications
• Improving energy efficiency in the production process
• Enabling better material quality and performance characteristics
• Creating a more environmentally sustainable production method

The market implications extend beyond defense applications. The establishment of a domestic titanium supply chain could catalyze growth in several key industries:

• Aerospace manufacturing
• Automotive lightweight materials
• Medical device production
• Advanced manufacturing sectors

This development positions IperionX as a potential cornerstone in the U.S. critical minerals strategy, with the Titan Project in Tennessee serving as a important source of titanium, rare earths, and zircon. The vertical integration strategy, combining mineral extraction with advanced processing capabilities, creates a robust competitive moat and reduces dependency on foreign suppliers.

CHARLOTTE, N.C.--(BUSINESS WIRE)-- IperionX Limited (IperionX) (NASDAQ: IPX, ASX: IPX) is pleased to announce that it has been awarded a contract for up to US$47.1 million in funding by the U.S. Department of Defense (DoD) to strengthen the U.S. Defense Industrial Base by accelerating development of a resilient, low-cost, and fully-integrated U.S. mineral-to-metal titanium supply chain.

This strategic partnership represents a combined investment of US$70.7 million between IperionX and the DoD to fund a two-phase development program over a two-year period. The agreement aims to strengthen U.S. titanium production capabilities, supporting national security and economic resilience.

As part of the initial phase, the DoD has obligated US$5 million through the Industrial Base Analysis and Sustainment (IBAS) program and IperionX will contribute US$1 million, to expedite the Titan Critical Minerals Project in Tennessee to ‘shovel-ready’ status, an important milestone in securing a new domestic source of titanium, rare earths and zircon critical minerals.

The remaining US$42.1 million awarded under the contract is expected to be obligated by the DoD over the duration of the agreement, with the funds to be applied to facilitating vertical integration and increased titanium production capacity at IperionX’s Titanium Manufacturing Campus in Virginia.

Anastasios (Taso) Arima, IperionX CEO said:

“This award is a pivotal moment in IperionX’s mission to re-shore the U.S. titanium industry. For too long, American industry has been reliant on foreign-controlled supply chains for this critical high-strength metal. IperionX’s proprietary technologies, combined with the Titan Project, offer a pathway for a resilient end-to-end U.S. titanium supply chain. We are proud to be selected by the DoD as a key partner in strengthening U.S. industrial and defense capabilities.”

Titanium is a critical material for the aerospace, defense, automotive, space, and consumer industries, but its high cost and reliance on foreign supply chains have limited its broader adoption. IperionX’s Hydrogen-Assisted Metallothermic Reduction (HAMR™) and Hydrogen Sintering and Phase Transformation (HSPT™) technologies provide a pathway to produce low-cost, high-performance titanium.

In 2023, DoD conducted market research to identify “practical alternatives to the current import-dominated supply chain for high-purity titanium sponge and titanium alloy metals.” DoD stated “the ideal solution will domestically mine, process, and refine ore, and recycle scrap titanium” to produce titanium products while providing “clear benefits regarding material quality and cost” and improving “process energy efficiency when compared to current methods (i.e., the Kroll or Hunter processes).”

This effort led DoD to issue a competitive solicitation in 2024, seeking proposals from industry to improve resiliency in the titanium supply chain. The objective of DoD’s solicitation was to “domestically source titanium through innovative processes” to produce titanium to meet U.S. military demand. Having been selected for award, IperionX’s proposal demonstrated a unique end-to-end solution to reshore the U.S. titanium supply chain.

This funding from the DoD’s IBAS program reflects the Trump Administration’s priority to secure domestic critical minerals and metals supply chains and to ensure resilient U.S. manufacturing capabilities.

IperionX’s mineral-to-metal titanium supply chain will support advanced U.S. industries by delivering a low-cost, scalable and resilient solution. IperionX looks forward to working closely with the DoD and industry partners to execute on this landmark initiative.

About IperionX

IperionX is a leading American titanium metal and critical materials company – using patented metal technologies to produce high performance titanium alloys, from titanium minerals or scrap titanium, at lower energy, cost and carbon emissions.

Our Titan critical minerals project is the largest JORC-compliant mineral resource of titanium, rare earth and zircon minerals sands in the United States.

IperionX’s titanium metal and critical minerals are essential for advanced U.S. industries including space, aerospace, defense, consumer electronics, hydrogen, automotive and additive manufacturing.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250218287248/en/

Anastasios (Taso) Arima, Founder and CEO

Toby Symonds, President

Dominic Allen, Chief Commercial Officer

Investors: investorrelations@iperionx.com

Media: media@iperionx.com

+1 980 237 8900

www.iperionx.com

Source: IperionX Limited

FAQ

What is the total value of IperionX's (IPX) DoD contract for titanium production?

The total contract value is $47.1 million in DoD funding, with a combined investment of $70.7 million including IperionX's contribution.

How much initial funding has IPX received from the DoD contract?

The DoD has initially obligated $5 million, with IperionX contributing $1 million for the first phase.

What will the DoD funding be used for at IperionX (IPX)?

The funding will be used to develop the Titan Critical Minerals Project in Tennessee and expand the Titanium Manufacturing Campus in Virginia.

What proprietary technologies does IPX use for titanium production?

IperionX uses HAMR™ (Hydrogen-Assisted Metallothermic Reduction) and HSPT™ (Hydrogen Sintering and Phase Transformation) technologies.

How long is the duration of IPX's DoD contract for titanium production?

The development program is planned for a two-year period.