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CHARLOTTE, N.C., February 18, 2025--(BUSINESS WIRE)--IperionX Limited (IperionX) (NASDAQ: IPX, ASX: IPX) is pleased to announce that it has been awarded a contract for up to US$47.1 million in funding by the U.S. Department of Defense (DoD) to strengthen the U.S. Defense Industrial Base by accelerating development of a resilient, low-cost, and fully-integrated U.S. mineral-to-metal titanium supply chain.
This strategic partnership represents a combined investment of US$70.7 million between IperionX and the DoD to fund a two-phase development program over a two-year period. The agreement aims to strengthen U.S. titanium production capabilities, supporting national security and economic resilience.
As part of the initial phase, the DoD has obligated US$5 million through the Industrial Base Analysis and Sustainment (IBAS) program and IperionX will contribute US$1 million, to expedite the Titan Critical Minerals Project in Tennessee to ‘shovel-ready’ status, an important milestone in securing a new domestic source of titanium, rare earths and zircon critical minerals.
The remaining US$42.1 million awarded under the contract is expected to be obligated by the DoD over the duration of the agreement, with the funds to be applied to facilitating vertical integration and increased titanium production capacity at IperionX’s Titanium Manufacturing Campus in Virginia.
Anastasios (Taso) Arima, IperionX CEO said:
"This award is a pivotal moment in IperionX’s mission to re-shore the U.S. titanium industry. For too long, American industry has been reliant on foreign-controlled supply chains for this critical high-strength metal. IperionX’s proprietary technologies, combined with the Titan Project, offer a pathway for a resilient end-to-end U.S. titanium supply chain. We are proud to be selected by the DoD as a key partner in strengthening U.S. industrial and defense capabilities."
Titanium is a critical material for the aerospace, defense, automotive, space, and consumer industries, but its high cost and reliance on foreign supply chains have limited its broader adoption. IperionX’s Hydrogen-Assisted Metallothermic Reduction (HAMR™) and Hydrogen Sintering and Phase Transformation (HSPT™) technologies provide a pathway to produce low-cost, high-performance titanium.
In 2023, DoD conducted market research to identify "practical alternatives to the current import-dominated supply chain for high-purity titanium sponge and titanium alloy metals." DoD stated "the ideal solution will domestically mine, process, and refine ore, and recycle scrap titanium" to produce titanium products while providing "clear benefits regarding material quality and cost" and improving "process energy efficiency when compared to current methods (i.e., the Kroll or Hunter processes)."