IperionX Boosts Titanium Powder Capacity 7x to 1,400 tpa, Cuts Unit Costs to $29/kg
IperionX has boosted its titanium powder capacity by 60% with no extra capital, cutting unit costs to $55/kg, and is now accelerating a US Department of Defense-backed expansion to 1,400 tpa aiming for the lowest-cost titanium production in America.
- Titanium powder capacity increased 60% to 200 tpa without additional capex
- Unit production costs reduced to ~$55/kg, down from $75/kg
- US DoD-backed expansion underway to scale capacity to 1,400 tpa by mid-2027
- Expansion funded by $47.1m DoD award plus existing cash and contracts
- Targeting global leadership in high-performance titanium components by 2030
Commercial Scalability and Cost Efficiency
IperionX Limited has announced a significant milestone in its titanium production journey, increasing its nameplate titanium powder capacity by 60% to 200 metric tons per annum (tpa) without any additional capital expenditure. This leap is driven by operational and technological process improvements at its Virginia Titanium Manufacturing Campus, validating the commercial scalability of its proprietary HAMR and HSPT technologies.
Alongside this capacity boost, the company has slashed its projected titanium powder unit costs from approximately US$75/kg to around US$55/kg at full utilization. These cost savings stem from economies of scale, reduced reagent intensity, and superior energy efficiency, which cuts energy use by more than half compared to traditional titanium production methods.
DoD-Backed Expansion to Become US Market Leader
Building on this momentum, IperionX has commenced a US Department of Defense (DoD)-backed expansion to scale titanium powder production capacity sevenfold to 1,400 tpa by mid-2027. This expansion, with a capital cost of approximately US$75 million, is primarily funded by a US$47.1 million DoD Industrial Base Analysis and Sustainment (IBAS) award, supplemented by existing cash reserves and prospective DoD SBIR Phase III task orders.
The expanded facility aims to position IperionX as the largest volume and lowest-cost titanium powder producer in the United States. The company projects unit costs could fall further to about US$29/kg at full capacity, a dramatic reduction that could reshape the US titanium supply chain by reducing reliance on imports and enhancing national security for aerospace, defense, and electric vehicle sectors.
Integrated Titanium Supply Chain and Market Ambitions
Beyond powder production, IperionX is rapidly scaling downstream manufacturing capabilities, including powder metallurgy, forging, and additive manufacturing. This integrated approach enables the production of high-performance titanium components such as fasteners, enclosures for consumer electronics, gears for robotics, and titanium brackets for aerospace and automotive applications.
The company targets cost competitiveness with stainless steel and aluminum in these markets, leveraging its patented technologies to increase yields, reduce process steps, and lower energy and capital intensity. By 2030, IperionX aims to achieve global leadership with over 10,000 tpa of advanced titanium components, potentially unlocking new market segments through significant cost reductions.
Strategic Implications and Industry Impact
IperionX’s advancements come at a critical time as industries increasingly seek lightweight, corrosion-resistant materials with lower environmental footprints. The company’s circular titanium supply chain, which converts recycled titanium scrap into high-quality powder and components, aligns with sustainability goals and the growing demand for domestic supply chains in strategic sectors.
CEO Anastasios Arima highlighted the transformative potential of their technology, emphasizing the step-change reduction in manufacturing costs and the creation of a fully integrated US titanium supply chain capable of serving defense, aerospace, automotive, and consumer electronics customers.
Bottom Line?
IperionX’s aggressive scale-up and cost-cutting set the stage for a reshaped US titanium market, but execution risks and funding remain key watchpoints.
Questions in the middle?
- Will IperionX meet its mid-2027 commissioning and full utilization timelines amid market and operational challenges?
- How will the evolving titanium cost curve impact incumbent producers and global supply dynamics?
- What are the prospects for broader adoption of IperionX’s titanium components in automotive and consumer electronics sectors?