How Will IperionX’s A$70M Raise Transform U.S. Titanium Production?
IperionX has secured A$70 million through a share placement to fast-track expansion of its titanium production capacity in the U.S., aligning closely with Department of Defense priorities.
- A$70 million placement at A$5.00 per share to fund titanium production scale-up
- Collaboration with U.S. Department of Defense to optimize titanium equipment
- Potential to unlock an additional US$42.1 million in DoD funding
- Directors subscribed for shares subject to shareholder approval
- Placement priced at a 6% discount to last closing price, completed in two tranches
Strategic Capital Raise to Boost Titanium Production
IperionX Limited, a leading U.S.-based titanium and critical materials company, has announced a significant capital raising effort, securing A$70 million (approximately US$46 million) through a placement of 14 million new shares. Priced at A$5.00 per share, this funding is earmarked to accelerate the expansion of its titanium production capacity across multiple U.S. locations, including North Carolina, Tennessee, Utah, and Virginia.
The move comes amid growing demand for domestically produced titanium, a metal critical to defense, aerospace, and advanced manufacturing sectors. By advancing orders for long-lead capital equipment now, IperionX aims to shorten construction timelines and scale production more rapidly, positioning itself as a key supplier in a market increasingly focused on supply chain resilience.
Close Collaboration with U.S. Department of Defense
A notable aspect of this expansion is IperionX's ongoing collaboration with the U.S. Department of Defense (DoD). The company is finalizing an equipment profile tailored to titanium products for defense applications, a process expected to unlock an additional US$42.1 million in previously awarded DoD funding under the Industrial Base Analysis and Sustainment program. This partnership underscores the strategic importance of IperionX’s operations in supporting national security and advanced manufacturing capabilities.
CEO Anastasios (Taso) Arima emphasized the significance of reshoring titanium production, stating that the company is proud to contribute to reducing reliance on imports by producing U.S.-made titanium components at scale.
Shareholder and Board Support
Demonstrating strong internal confidence, IperionX’s non-executive and executive directors have collectively subscribed for 433,230 new shares, raising approximately A$2.2 million. This subscription is subject to shareholder approval at an upcoming General Meeting. The placement will be executed in two tranches – the majority of shares issued under ASX Listing Rule 7.1 by late July, and the director shares contingent on shareholder consent.
The placement price reflects a 6% discount to the last closing price, signaling a balanced approach to attracting new capital while respecting existing shareholder value.
Positioning for Growth in Critical Materials
IperionX’s Titan critical minerals project holds the largest JORC-compliant resource of titanium, rare earth, and zircon minerals sands in the United States. The company’s patented metal technologies enable production of high-performance titanium alloys with lower energy consumption, cost, and carbon emissions, aligning with broader industry trends toward sustainability.
As demand for titanium intensifies in sectors such as aerospace, defense, hydrogen, and additive manufacturing, IperionX’s expansion and DoD collaboration place it at the forefront of a strategic supply chain transformation.
Bottom Line?
IperionX’s capital raise and DoD partnership mark a pivotal step in reshaping U.S. titanium supply chains amid rising strategic demand.
Questions in the middle?
- When will the additional US$42.1 million DoD funding be formally unlocked and deployed?
- How quickly can IperionX scale production once long-lead equipment is ordered?
- What are the risks if shareholder approval for director participation is delayed or withheld?
