IperionX Powers Up with First End-to-End Titanium Powder Production and Key IP Buy

Breakthrough in Titanium Powder Production

IperionX Limited (Nasdaq | ASX: IPX) has marked a significant milestone with the successful completion of its first "end-to-end" commercial production cycle of titanium metal powder at its Virginia facility. Utilizing its patented Hydrogen Assisted Metallothermic Reduction (HAMR™) process, the company efficiently transformed high-oxygen titanium scrap into low-oxygen, high-quality titanium powder. This achievement follows the commissioning of the HAMR furnace last quarter and signals a critical step toward routine, scalable titanium production.

The Virginia Titanium Manufacturing Campus is progressing steadily, with multiple process improvements identified that are expected to push production capacity beyond initial nameplate levels by late 2025. This operational momentum aligns with IperionX's strategy to meet growing customer demand for advanced titanium products.

Innovations in Titanium Product Manufacturing

Capitalizing on increased powder output, IperionX has prioritized the development of high-value, near-net-shape titanium metal products. Central to this effort is the patented Hydrogen Sintering and Phase Transformation (HSPT™) technology, which enables the manufacture of titanium components with forged-quality microstructures directly from powder. This process simplifies manufacturing, reduces costs, and accelerates production timelines compared to traditional vacuum melting methods.

To support rising demand, the company commissioned a new 100-ton uniaxial hydraulic powder metallurgy press and has ordered additional equipment to expand pressing and HSPT capacity in 2025. These investments underscore IperionX’s commitment to scaling advanced manufacturing capabilities.

Strategic Acquisition and Technology Portfolio Consolidation

In a strategic move to secure its technological edge, IperionX completed the acquisition of its titanium technology intellectual property portfolio for a final payment of US$6 million. This consolidation grants exclusive commercial rights to a suite of proprietary technologies that offer transformative advantages over the traditional Kroll process, including lower energy consumption, reduced capital intensity, faster production cycles, and higher yields.

The integrated technology platform encompasses mineral upgrading (ARH™ and Green Rutile™), metal refining (HAMR™ and GSD™), and metal forging (HSPT™) processes. Together with the company’s Titan Critical Minerals Project in Tennessee, these technologies position IperionX as the only U.S. company capable of delivering a secure, end-to-end titanium supply chain from mineral feedstock to finished metal products.

Engagement with U.S. Government and Defense

IperionX has strengthened its ties with U.S. government agencies, appointing Lieutenant General Ross Coffman (ret) as Defense Advisor to guide titanium product development for the Army and other defense sectors. The company is actively pursuing multiple government funding opportunities aimed at reshoring a secure domestic titanium supply chain, with potential access to programs totaling hundreds of millions of dollars.

These initiatives align with national security priorities and underscore the strategic importance of IperionX’s vertically integrated titanium production capabilities.

Robust Financial Position Supports Growth

Financially, IperionX is well-positioned to advance its operational ramp-up and expansion plans. As of December 31, 2024, the company held US$77.1 million in cash, supplemented by US$4.1 million available under the DPA Title III funding program. Additionally, a recent capital raise of approximately US$66 million (~A$100 million) through the issuance of new shares provides ample liquidity to fund equipment acquisitions, facility expansions, and ongoing operations.

The company plans a prudent approach to scaling production, leveraging data and optimization work to inform future investments and meet its first major customer production requirements by mid-2025.

Outlook and Market Potential

IperionX’s advancements in titanium powder production and product manufacturing technologies come at a time of increasing demand across aerospace, defense, automotive, consumer electronics, and green hydrogen sectors. The company’s ability to produce high-quality titanium products from recycled scrap and domestic minerals offers a compelling value proposition amid global supply chain uncertainties.

With a strong pipeline of customer engagements and ongoing R&D to optimize proprietary processes, IperionX is poised to convert prototyping efforts into commercial contracts, potentially reshaping the U.S. titanium industry landscape.