6K Additive turns used Nickel 718 powder into a US$10.8m supply opportunity

ADDMAN Agreement Puts a Value on Nickel 718 Supply

6K Additive Inc. (ASX:6KA) has secured a 30-month supply agreement with US advanced manufacturer ADDMAN Engineering for Nickel 718 alloy powder, with a stated contractual value between US$8.1 million and US$10.8 million. The arrangement gives the Pennsylvania-based powder producer a defined commercial relationship with a customer serving aerospace, defence and energy markets.

The agreement includes dedicated stocking support to meet ADDMAN’s production requirements and allows for further collaboration as demand develops. The announcement does not disclose shipment schedules, volumes, pricing methodology, margins or how the contract value will be recognised across the 30-month term, so the headline figure should not be read as near-term revenue guidance.

Used Powder Becomes New Feedstock

The more distinctive element is the structured revert buy-back program. Under the arrangement, 6K Additive will purchase revert powder from ADDMAN, including used powder, and process it into new high-purity material using its proprietary UniMelt microwave plasma system.

That creates a circular supply chain within the customer relationship: ADDMAN supplies used material back to 6K Additive, while 6K Additive supplies fresh spherical powder for further manufacturing. The company says its technology can convert revert into premium powders across nickel, titanium and refractory metals, although this agreement is specifically for Nickel 718.

Domestic Production Supports Critical Applications

6K Additive said the agreement expands access to domestically produced powder for ADDMAN and supports supply-chain requirements in sensitive industries. Chief executive and managing director Frank Roberts said the arrangement demonstrated that upcycled feedstock could deliver the quality needed for demanding additive manufacturing, while potentially lowering total cost of ownership through the buy-back program.

For shareholders, the commercial test now shifts from securing the contract to executing it. The important markers will be the pace of deliveries, the contribution from the buy-back stream, the effect on powder margins and whether the agreement produces the additional business contemplated in the release.