The US Department of Defense (DoD) has awarded titanium metal and critical materials company IperionX (ASX:IPX,NASDAQ:IPX) a contract for up to US$47.1 million in funding.
The strategic partnership will focus on strengthening the US Defense Industrial Base by accelerating the development of a resilient, low-cost and fully integrated American mineral-to-metal titanium supply chain.
The DoD and IperionX will put a combined US$70.7 million into the endeavor, which will involve a two phase development program that will take place over a period of two years.
Under the initial phase of the deal, the DoD will provide US$5 million through the Industrial Base Analysis and Sustainment program, while US$1 million will be contributed by IperionX.
The funds will be used to advance the Tennessee-based Titan critical minerals project to shovel-ready status.
“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,” said IperionX CEO Anastasion Arima in a Monday (February 17) release.
The DoD will allocate the remaining US$42.1 million outlined in the contract over time; this money will support vertical integration and boost titanium production at IperionX’s Virginia facility.
The Virginia facility is the first 100 percent recycled titanium metal powder facility.
The DoD’s support for IperionX comes after it completed market research aimed at finding ‘practical alternatives’ to the import-reliant US supply chain for high-purity titanium sponge and titanium alloy metals.
It solicited proposals from industry in 2024, and ultimately selected IperionX.
US Geological Survey data shows that titanium sponge metal was produced by one operation in Utah in 2024, with US producers of titanium ingot and downstream products “relying on imports of titanium sponge and scrap.”
Meanwhile, the US produced 100 metric tons of ilmenite, the primary titanium ore, last year.
“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 said.
‘(We) look forward to working closely with the DoD and industry partners to execute this landmark initiative.”
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.