Charlotte-based IperionX Limited has secured a U.S. Department of Defense contract worth up to $47.1 million to enhance the U.S. titanium supply chain, the company announced Monday.
The two-year partnership would involve IperionX investing $23.6 million, for a total investment of $70.7 million. The goal would be to create a resilient and low-cost integrated mineral-to-metal titanium supply chain.
The funding aligns with the Trump administration’s priority to secure domestic critical minerals and metals supply chains, according to IperionX.
Iperion shares closed Monday up more than 6.5% on the Australian Stock Exchange. Nasdaq was closed Monday for President’s Day. On the U.S. exchange, IperionX closed Friday at $25.99, after trading between $12.50 and $38.93 in the past year. Shares are up more than 72% in the past year, despite falling more than 24% since Jan. 1.
The DOD has allocated $5 million through the Industrial Base Analysis and Sustainment program, while IperionX will contribute $1 million, in an initial phase to expedite the company’s Titan Critical Minerals Project in west Tennessee, advancing it to “shovel-ready status.” The Titan Project is one of the largest titanium, zirconium and rare earth minerals deposits in the U.S., according to the company.
The DoD would allocate the remaining $42.1 million from the contract throughout the agreement. These funds would increase titanium production capacity at IperionX’s Titanium Manufacturing facility in South Boston, Virginia.
“This award is a pivotal moment in IperionX’s mission to reshore the U.S. titanium industry. For too long, American industry has been reliant on foreign-controlled supply chains for this critical high-strength metal,” says IperionX CEO Taso Arima.
China and Russia control roughly 70% of the global titanium supply chain, IperionX told an analysts’ conference last year. Due to its high strength-to-weight ratio and corrosion resistance, titanium has potential as a substitute for higher-carbon metals, especially the estimated $165 billion global market for aluminum and $200 billion market for stainless steel.
IperionX aims to produce high-performance titanium alloys from titanium minerals or scrap titanium. Using patented metal technologies in its processing, the company said it intends to reduce energy usage, costs and carbon emissions in supplying titanium to advanced U.S. industries. Those include consumer electronics, space, aerospace, defense, hydrogen, electric vehicles and additive manufacturing.
IperionX was formerly known as Hyperion Metals Limited and changed its name to IperionX Limited in February 2022. The company was incorporated in western Australia in 2017.
In September, IperionX announced a contract with Ford Motor Co. that it says would be worth $11 million in annual revenue. Ford is the second-largest U.S. automaker.
In November 2023, IperionX announced a separate $12.7 million contract with the Department o Defense.