IperionX Secures US$11.5 Million U.S. Army Task Order to Expand Titanium Manufacturing

Second U.S. Army Task Order Boosts Domestic Titanium Manufacturing

IperionX (ASX:IPX, NASDAQ: IPX) has secured a substantial follow-up contract from the U.S. Army, with Task Order 2 under its existing US$99 million SBIR Phase III contract now funded at US$11.5 million and carrying a potential value of up to US$25.4 million. The firm-fixed-price order will accelerate the company’s industrial-scale titanium production capabilities at its Virginia facility, focusing on expanding continuous furnace operations and bringing titanium fastener finishing fully in-house.

The new contract funds three key work packages: development of a continuous Hydrogen Sintering and Phase Transformation (HSPT™) furnace, installation of in-house fastener finishing equipment, and commissioning of industrial-scale continuous HSPT™ and dehydrogenation furnaces. These investments aim to increase throughput, improve manufacturing consistency, and reduce unit costs for titanium components critical to U.S. defense applications.

Integrated Powder-to-Part Platform Targets Cost and Lead Time Efficiencies

IperionX’s titanium manufacturing platform uniquely integrates its proprietary HAMR™ technology for producing low-oxygen titanium powder with HSPT™ processing that consolidates powder into near-net-shape components. Task Order 2 advances this continuous manufacturing approach by scaling downstream conversion processes, which have been a bottleneck for higher-volume supply.

By internalising fastener finishing, through centreless grinding and thread rolling equipment, the company expects to reduce reliance on external suppliers, shorten lead times, and retain more value within its vertically integrated supply chain. The program includes production-scale manufacturing of titanium track pins, bolts, and fasteners for ground-combat systems, with inspection planned at Detroit Arsenal.

Options Could Extend into Aerospace and Refractory Metals

Beyond the funded work packages, the contract includes US$6.9 million in unfunded options that could broaden IperionX’s technology platform into aerospace-grade titanium components and refractory metal powders. These options, subject to U.S. Government discretion, encompass integrated binder-jet printing with HSPT™ for aerospace parts, recycling of C103 alloy scrap into high-purity powder, and niobium reduction and powder spheroidization in collaboration with Global Advanced Metals.

C103 is a niobium-hafnium-titanium alloy critical for high-temperature aerospace and defense applications such as rocket engines and hypersonic propulsion. Establishing domestic recycling and powder production capabilities for such refractory metals could enhance U.S. supply chain resilience and reduce dependence on imports.

Part of a Broader U.S. Government-Backed Titanium Supply Chain Initiative

This task order complements a suite of U.S. Government programs supporting IperionX’s ambition to rebuild a secure, vertically integrated American titanium supply chain. Previous funding includes nearly US$60 million under the Defense Production Act and Industrial Base Analysis and Sustainment programs, alongside strategic transfers of titanium alloy scrap feedstock.

CEO Taso Arima emphasised that the award marks a critical step in scaling IperionX’s titanium powder-to-part platform, aligning with its GenX™ continuous HAMR™ production system to provide an integrated manufacturing backbone. The expanded capacity aims to meet U.S. Army demand while enabling potential commercial growth in aerospace and advanced manufacturing sectors.

The task order runs from August 2026 through August 2030, with additional funding for options contingent on government exercise and technical milestones. As IperionX continues to ramp production and commercialise its proprietary technologies, the company’s progress will be closely watched for its impact on domestic titanium supply chains and defence industrial capabilities.