IperionX Plans to Build the World’s Largest 100% Recycled Titanium Metal Powder Facility By 2025

Rhea-AI Summary

IperionX has completed final engineering for its 125 tpa Titanium Demonstration Facility (TDF) in Virginia, with first titanium powder production expected in Q1 2024. Following this, a Titanium Commercial Facility (TCF-1) expansion is planned for 2025, increasing capacity to 1,125 tpa. This expansion aims to reduce the titanium cost significantly, projecting cash costs of ~US$42/kg compared to market rates around ~US$200/kg. The TCF-1 is anticipated to generate ~US$100 million EBITDA by 2026. IperionX is in advanced discussions for titanium supply with various industries, positioning itself as a leading supplier of recycled titanium with low carbon emissions.

Positive

• Completion of engineering for the 125 tpa TDF in Virginia.
• Expected production of first titanium powder in Q1 2024.
• Plans for TCF-1 expansion to 1,125 tpa by 2025.
• Projected cash costs of ~US$42/kg for titanium powder.
• Anticipated EBITDA of ~US$100 million from TCF-1 in 2026.
• Significant interest from various industries for titanium supply.

Negative

• None.

• Final engineering and design for the 125 tpa Titanium Demonstration Facility (“TDF”) in Virginia is nearly complete, and first titanium powder production is targeted for Q1 2024
  
  
  
  
• Once the TDF is successfully in operation, there are defined plans for a simple modular expansion into the Titanium Commercial Facility (“TCF-1”) with production capacity of 1,125 tpa in 2025
  
  
  
  
• TCF-1 expansion provides a pathway for a step change in reducing the cost of titanium, with projected cash costs of ~US$42/kg compared to a current third-party forecast titanium powder market price of ~US$200/kg
  
  
  
  
• Forecast 2026 EBITDA from TCF-1 is ~US$100 million based on key operating assumptions and using a conservative titanium metal powder price of ~US$130/kg
  
  
  
  
• IperionX continues to receive significant interest for the commercial supply of titanium powders and is in advanced discussions with customers across various industries
  
  
  
  
• The development of the TDF & TCF-1 will position the Company as the largest global supplier of 100% recycled, low cost and low carbon titanium metal powders

CHARLOTTE, N.C.--(BUSINESS WIRE)-- IperionX Limited (“IperionX”) (Nasdaq | ASX: IPX), is pleased to announce that it has completed detailed engineering design for the planned 125 metric tonnes per annum (“tpa”) Titanium Demonstration Facility (“TDF”), previously announced in September 2022, and a Techno-Economic Assessment for an expansion into the Company’s first Titanium Commercial Facility (“TCF-1”) of 1,125 tpa located at the Southern Virginia Technology Park in Halifax County, Virginia.

The TDF and TCF-1 will utilize the breakthrough Hydrogen Assisted Metallothermic Reduction (“HAMR”) technologies to produce titanium metal powder. Development of the TCF-1 to 1,125 tpa production capacity would furnish IperionX with the largest recycled titanium metal powder production capacity globally, the only titanium production facility using 100% titanium metal scrap as a feedstock. This will also be the only such facility with zero Scope 1 & 2 emissions with the lowest carbon intensity for any commercial titanium metal powder product.

The full press release, including detailed cost estimates can be found here.

Commenting on the completion of the scale up plans and testing, Anastasios Arima, Co-founder & CEO said:

“We have now developed plans for the world’s first and largest recycled titanium powder facility, with initial production from the first stage 125 tpa TDF forecast to come online in early 2024 with a simple and modular expansion to a 1,125 tpa TCF-1 by the end of 2025.

The pathway for the development of the TDF and TCF-1 build upon the learnings from our current Industrial Pilot Facility operations in Utah where we have been producing circular titanium metal since early 2022. The development of the TDF & TCF-1 will scale our production to commercial quantities of 100% recycled titanium metal while also reducing the cost providing the potential for titanium to compete on price with other metals, including stainless steel and aluminum.

The U.S. is a tier 1 fiscal and manufacturing operating environment with a large pipeline of government incentives potentially available to IperionX. We look forward to rapidly advancing our developments through 2023 and moving towards scaled up production to secure a U.S. supply chain of this critical metal.”

Titanium Metal Powder Production Scale-Up

The TDF is expected to begin commissioning in Q4 2023 and be operational by Q1 2024, targeting a run-rate of 125 tpa by Q3 2024. Development of the TDF remains subject to successful Board approval for a final investment decision, expected in Q3 2023.

The TDF is projected to initially produce ~15 tpa of spherical titanium metal powder and ~110 tpa of angular titanium metal powder. IperionX then plans to install additional equipment at the facility to allow for the operational flexibility to produce 125 tpa of either 100% angular titanium metal powder or 100% spherical titanium metal powder for an incremental capital cost of US$6.9 million. Cash costs for 125 tpa of spherical titanium powder production at the TDF are projected to be ~US$72/kg before contingencies.

The larger capacity TCF-1 could be operational by Q4 2025 if long lead time items are ordered in Q3 2024. The TCF-1 is designed to produce 1,125 tpa of angular or spherical titanium metal powder. Capital costs for this expansion would be ~US$70 million, with ~US$48 million needed for long lead time orders and the remaining US$22 million needed during commissioning in 2025.

Assuming a conservative spherical titanium metal powder price of ~US$130/kg (vs. current estimated market pricing of ~US$200/kg), and using key operating assumptions, the TCF-1 has the potential to generate revenue of ~US$145 million and EBITDA of ~US$100 million in 2026.

About IperionX

IperionX’s mission is to be the leading developer of low carbon titanium for advanced industries including space, aerospace, electric vehicles and 3D printing. IperionX holds an exclusive option to acquire breakthrough titanium technologies that can produce titanium products that are low carbon and fully circular. IperionX is producing titanium metal powders from titanium scrap at its operational pilot facility in Utah, and intends to scale production at a Titanium Demonstration Facility in Virginia. IperionX holds a 100% interest in the critical minerals Titan Project, which has the largest JORC resource of titanium, rare earth and zircon rich mineral sands in the U.S.A.

Forward Looking Statements

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, and achievements to differ materially from any future results, performance, or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves, the Company’s ability to comply with the relevant contractual terms to access the technologies, commercially scale its closed-loop titanium production processes, or protect its intellectual property rights, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements, or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230427005393/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 expected production timeline for IperionX's Titanium Demonstration Facility (TDF)?

The TDF is expected to begin operations in Q1 2024, with production starting by Q3 2024.

What is the projected capacity of the Titanium Commercial Facility (TCF-1) planned by IperionX?

The TCF-1 is planned to have a production capacity of 1,125 tpa.

How much EBITDA does IperionX project from its Titanium Commercial Facility (TCF-1) by 2026?

IperionX projects an EBITDA of approximately US$100 million from TCF-1 by 2026.

What are the cash cost projections for titanium powder production at IperionX's facilities?

Projected cash costs for titanium powder production are ~US$42/kg for the TCF-1 expansion.

What is the significance of IperionX's operations in terms of environmental impact?

IperionX aims to be the largest supplier of 100% recycled titanium metal powders, focusing on low carbon emissions.