Amaero’s A$35M Velo3D Deal Highlights Risks of Qualification Milestones

Strategic Partnership in Metal Additive Manufacturing

Amaero Ltd (ASX:3DA) has formalised a significant five-year exclusive supply agreement with U.S.-based metal 3D printing pioneer Velo3D (OTC:VLDX). Valued at approximately A$35 million, the deal positions Amaero as the sole supplier of critical C103 titanium and refractory alloy powders for Velo3D’s advanced Sapphire printing systems. This collaboration is a notable milestone in the evolving landscape of additive manufacturing, particularly within aerospace, defense, and space industries.

The agreement grants Velo3D exclusive rights to use Amaero’s powders across its proprietary print parameters and production initiatives, including the Rapid Production Solutions (RPS) program. Amaero’s powders will be the preferred materials for all Velo3D machine production, reinforcing a tightly integrated supply chain between the two companies.

Capital Investment and Capacity Expansion

In tandem with the supply deal, Amaero announced plans to invest approximately A$72 million over the next three years to significantly expand its production capabilities. This includes commissioning up to six advanced gas atomizers, with the first already operational and subsequent units scheduled for commissioning through 2026. These investments aim to establish the largest and most responsive production capacity for refractory and titanium alloy powders in the United States.

The expansion supports the growing demand for high-quality spherical powders essential for metal additive manufacturing. Amaero’s installation of exclusive EIGA Premium atomization technology in the U.S. further enhances its competitive edge in producing complex alloy powders tailored for Velo3D’s printing systems.

Alignment with U.S. Re-Shoring and National Security

Both Amaero and Velo3D emphasised the strategic importance of this partnership within the broader context of U.S. industrial policy. The deal aligns with ongoing efforts to re-shore advanced manufacturing capabilities, reduce supply chain vulnerabilities, and support national security objectives. Amaero’s Chairman and CEO, Hank J. Holland, highlighted the urgency of developing domestic supply chains after decades of offshoring, noting the critical role of additive manufacturing in this renaissance.

Velo3D’s CEO, Dr. Arun Jeldi, echoed this sentiment, underscoring the imperative for U.S. companies to lead innovation and scale manufacturing throughput. The collaboration aims to accelerate adoption of metal 3D printing technologies that can produce mission-critical parts capable of withstanding extreme environments, particularly in space and defense applications.

Risks and Future Outlook

The agreement includes a termination clause if Amaero fails to qualify its C103 and Ti64 powders with Velo3D by November 2025, introducing a performance milestone that adds conditionality to the contract’s longevity. Revenue projections tied to the deal are subject to Velo3D’s production capacity and customer demand, which may fluctuate.

Nonetheless, the partnership represents a significant step forward for Amaero, positioning it as a key player in the U.S. additive manufacturing supply chain. The deal also signals growing confidence in metal 3D printing’s role in high-value manufacturing sectors and the increasing importance of domestic sourcing for critical materials.