IperionX Secures $18.5M U.S. Army Task Order to Scale Titanium Manufacturing
Key Takeaways
- The U.S. Army has awarded IperionX Task Order 2 with US$11.5 million currently funded, a base value of US$18.5 million, and a maximum potential value of US$25.4 million if all options are exercised.
- Task Orders 1 and 2 combined now total approximately US$19.8 million in stated value, with US$79.2 million remaining available under the US$99 million IDIQ contract ceiling.
- Three of four work packages are fully funded, covering continuous HSPT™ furnace development (US$3.4M), in-house fastener manufacturing equipment (US$1.0M), and industrial-scale continuous HSPT™ and dehydride furnaces (US$7.1M).
- The order directly addresses IperionX's key bottleneck — finished-component conversion capacity — which currently constrains customer programs across defense, aerospace, automotive and consumer electronics.
- Four unfunded options totalling US$6.9 million could extend IperionX's technology into aerospace-grade titanium components and refractory-metal supply chains including C103 alloy and niobium, with named collaborators including Global Advanced Metals.
IperionX secures second U.S. Army task order to scale American titanium manufacturing
The U.S. Army has awarded IperionX Task Order 2 under the company’s existing US$99 million SBIR Phase III IDIQ contract for Low-Cost, Domestic Titanium for Defense Applications. The order has US$11.5 million currently funded and obligated, a base value of US$18.5 million, and a maximum potential value of US$25.4 million if unexercised options are later funded. Task Orders 1 and 2 combined now total approximately US$19.8 million in stated value, leaving US$79.2 million available under the contract ceiling. This positions IperionX as a funded, U.S. Government-backed pillar of a vertically integrated domestic titanium supply chain.
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What Task Order 2 funds — from powder to finished part
The order expands downstream titanium powder-to-part capacity at IperionX’s Virginia manufacturing facility. Three work packages are fully funded, and a fourth has received an initial allotment. The program targets manufacturing of titanium track pins, bolts and fasteners for U.S. Army ground-combat applications, with inspection and acceptance planned at Detroit Arsenal and Army Research Laboratory’s Aberdeen Proving Ground. Bringing fastener finishing operations — centerless grinding and thread-rolling — fully in-house is a core objective.
| Work Package | Value | Funding Status |
|---|---|---|
| Continuous HSPT™ furnace development | US$3.4M | Fully funded |
| In-house fastener manufacturing equipment | US$1.0M | Fully funded |
| Industrial-scale continuous HSPT™ / dehydride furnaces | US$7.1M | Fully funded |
| Industrial-scale batch HSPT™ / dehydride furnaces | US$7.1M | US$0.1M funded |
| Base task order value | US$18.5M | US$11.5M funded |
The continuous HSPT™ furnace program will demonstrate repeatable, continuous processing of titanium components including bolts. Moving from batch to continuous operation is designed to increase throughput, improve process consistency and progressively reduce unit costs as production volumes scale. The in-house fastener equipment — centerless grinder and thread-rolling machinery — will reduce reliance on external finishing suppliers and give IperionX greater control over production schedules, quality and cost. Industrial-scale continuous HSPT™ and dehydrogenation furnaces represent the progression of HSPT™ toward industrial-scale manufacturing, while the batch-furnace work package provides additional production flexibility for different component geometries or lower-volume requirements.
Taso Arima, IperionX CEO
“This second U.S. Army task order represents an important step in scaling IperionX’s titanium powder-to-part manufacturing platform. The SBIR Phase III award aims to advance continuous and industrial-scale HSPT™ and dehydride capacity and bring titanium fastener finishing fully in-house at our Virginia titanium manufacturing facility. This award aligns with GenX™, our next-generation continuous HAMR™ production platform, which together will provide an integrated American titanium manufacturing system. The program will expand our capacity to manufacture titanium track pins, bolts and fasteners for the U.S. Army, shorten production lead times and strengthen the domestic titanium manufacturing capabilities required to support U.S. defense supply chains.”
Understanding IperionX’s titanium technology platform
IperionX operates a two-stage proprietary titanium manufacturing platform. HAMR™ converts titanium scrap or mineral feedstocks into low-oxygen titanium powder. HSPT™ then consolidates that powder into near-net-shape components with a wrought-like microstructure and high-performance mechanical attributes. The process sidesteps the cost and complexity of traditional titanium production routes.
GenX™ is IperionX’s next-generation continuous HAMR™ development platform, targeting continuous production of low-oxygen titanium powder. Task Order 2 separately supports the development of continuous HSPT™ processing and industrial-scale dehydrogenation capacity for converting HAMR™ powder into titanium near-net-shape components. Connecting continuous powder production with continuous downstream component manufacturing is designed to increase throughput, improve production consistency and progressively reduce unit costs as manufacturing volumes scale. The batch-to-continuous transition at both ends of the platform is the pathway to commercial competitiveness. Higher throughput lowers unit costs, tighter process control improves material consistency, and continuous operation increases equipment utilisation.
Why this matters for the U.S. defense industrial base and commercial scale-up
Finished-component conversion capacity is currently a key constraint across IperionX’s customer programs spanning defense, aerospace, automotive and consumer electronics. This funding directly relieves that bottleneck. The new HSPT™ and dehydrogenation capacity is expected to increase both the number and volume of components IperionX can process. Internalising fastener finishing is expected to shorten lead times, improve manufacturing control and retain more value within IperionX’s integrated powder-to-part production platform. The equipment, workforce and operating expertise developed under this program can support the scale-up of titanium products for aerospace and other advanced manufacturing markets.
Task Order 2 adds to a broader portfolio of U.S. Government programs backing IperionX’s development of an integrated American titanium supply chain. Previously announced support includes:
- US$59.8 million of fully obligated reimbursable funding under the Defense Production Act Title III and Industrial Base Analysis and Sustainment (IBAS) programs
- Approximately 290 metric tons of high-quality titanium alloy scrap transferred at no cost, providing strategic domestic feedstock for recycled titanium production
- Initial US$1.3 million U.S. Army task order (Task Order 1) under the SBIR Phase III contract
The progression from strategic feedstock and primary metal production through to qualified defense components reinforces IperionX’s role in rebuilding a secure, vertically integrated and competitive U.S. titanium supply chain. Expanding domestic capacity for titanium track pins, bolts, fasteners and other mission-critical components improves supply-chain resilience and potential surge capacity.
Optional pathways into aerospace and refractory metals
Task Order 2 includes four unexercised, unfunded options totaling US$6.9 million, subject to U.S. Government discretion, additional funding, technical development and customer qualification. These are not committed revenue. If exercised and funded, the options would extend IperionX’s patented technologies into new aerospace manufacturing routes and strategically important refractory-metal supply chains:
- Aerospace-grade titanium component (binder-jet + HSPT™) — US$1.0M — identified collaborator: a leading global aerospace and defense supplier
- C103 alloy scrap recycling — US$1.1M — identified collaborator: a large advanced materials company
- Niobium reduction & powder spheroidization — US$1.1M — identified collaborator: Global Advanced Metals
- Scaled spherical niobium & C103 powder production — US$3.7M — identified collaborator: Global Advanced Metals
C103 is a niobium-hafnium-titanium refractory alloy engineered for sustained operation at extreme temperatures. It is used in rocket-engine thrust chambers, nozzles and spacecraft reaction-control systems, with potential applications in missile and hypersonic propulsion where conventional aerospace alloys reach their performance limits. Additive manufacturing can enable complex C103 components with lower material waste, shorter lead times and greater design flexibility than conventional machining, but broader adoption depends on reliable access to tightly specified, low-oxygen powder. Supply remains limited and costly, while excess oxygen can reduce ductility and compromise performance in demanding high-temperature environments.
If funded, these option workstreams could establish an integrated domestic capability spanning C103 scrap recycling, niobium reduction, deoxygenation and powder spheroidization. This closed-loop pathway could recover the strategic value embedded in manufacturing scrap, reduce dependence on imported primary feedstock and expand U.S. access to advanced powders for missile, hypersonic, space-launch and spacecraft-propulsion systems. Successful scale-up would demonstrate the wider potential of HAMR™ as a platform for oxygen-sensitive critical metals beyond titanium, including C103, niobium and zirconium alloys.
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Contract terms and what comes next
Key contract specifics:
- Contracting entity: IperionX Technology LLC (wholly owned subsidiary)
- Contracting activity: U.S. Army Contracting Command, Aberdeen Proving Ground
- Pricing: Firm fixed price
- Period of performance: 28 August 2026 to 27 August 2030
The U.S. Government may terminate the base contract in whole or part at its discretion. Results from the continuous-furnace program are expected to inform any future batch-furnace deployment and option exercises. Funding and obligation do not represent cash received or revenue recognised, which remain subject to performance, acceptance, invoicing and applicable accounting requirements.
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