IperionX Awarded U.S. Department of Defense SBIR Phase III Contract for Up to US$99M

Rhea-AI Summary

IperionX (NASDAQ: IPX) has secured a significant SBIR Phase III contract from the U.S. Department of Defense worth up to US$99 million. The Indefinite Delivery, Indefinite Quantity (IDIQ) contract focuses on achieving Low-Cost Domestic Titanium for Defense Applications. The contract enables IperionX to receive task order funding from DoD agencies, with initial projects focusing on manufacturing high-performance titanium fasteners. The SBIR Phase III status indicates the technology's readiness to transition from R&D to scaled production. Production will occur at IperionX's Titanium Manufacturing Campus in Virginia, supporting local jobs and strengthening the U.S. defense industrial base. The contract aligns with U.S. Government priorities to enhance domestic critical-material manufacturing capabilities.

Positive

• Secured major DoD contract worth up to US$99 million for titanium components
• SBIR Phase III status validates technology readiness for commercial production
• Strategic positioning in U.S. defense supply chain with potential for higher-value aerospace components
• Manufacturing facility in Virginia supports domestic production and job creation
• Contract enables direct orders from multiple U.S. Government agencies without competition

Negative

• Contract value is a ceiling amount with no guaranteed minimum orders
• Initial focus on lower-value fasteners before potential higher-value components
• Execution and delivery capabilities yet to be proven at scale

Insights

Defense Industry & Government Contracts Specialist

IperionX secures DoD contract worth up to $99M, validating its titanium technology and creating significant revenue potential.

This SBIR Phase III contract represents a critical inflection point for IperionX as it transitions from R&D to commercial production. The $99 million ceiling establishes a streamlined procurement pathway, allowing any DoD agency to place orders without additional competitive bidding - dramatically reducing sales friction and accelerating revenue generation. The IDIQ structure (Indefinite Delivery, Indefinite Quantity) means the government isn't obligated to purchase a minimum amount, but provides a pre-approved channel for up to $99M in orders.

The strategic significance extends beyond the dollar value. SBIR Phase III awards are highly selective, reserved only for technologies deemed mission-critical and commercially viable. This contract positions IperionX in the rarified category of trusted defense suppliers with proven capabilities. The focus on titanium fasteners is particularly noteworthy - these high-margin components are essential across multiple defense platforms, representing an initial beachhead that could expand to more complex aerospace applications.

The timing aligns perfectly with heightened national security priorities around reshoring critical manufacturing. IperionX's Virginia production facility supports both local job creation and broader objectives to reduce foreign dependencies in strategic materials. This contract essentially establishes the company as a key player in rebuilding domestic titanium manufacturing capacity, with the DoD effectively subsidizing the company's commercial scaling through direct procurement commitments.

• Low-Cost Domestic Titanium for Defense Applications: Receipt of an SBIR Phase III Indefinite Delivery, Indefinite Quantity (IDIQ) contract to achieve “Low-Cost Domestic Titanium for Defense Applications” in the U.S.
• SBIR phase III contract: Enables IperionX to receive task order funding from U.S. Department of Defense (DoD) agencies up to a total of US$99 million
• Accelerating commercial deployment: SBIR Phase III contracts are reserved for technologies ready to transition from R&D into scaled production for U.S. Government use
• Strategic initial projects: Initial task orders will focus on manufacturing high-performance titanium fasteners for U.S. DoD agencies

CHARLOTTE, N.C., June 05, 2025 (GLOBE NEWSWIRE) -- IperionX Limited (IperionX) (NASDAQ: IPX, ASX: IPX) is pleased to announce that is has been awarded a Small Business Innovation Research (SBIR) Phase III contract by the U.S. Department of Defense.

Structured as an Indefinite Delivery, Indefinite Quantity contract in support of achieving “Low-Cost Domestic Titanium for Defense Applications” in the U.S., the contract establishes a funding mechanism through which qualifying U.S. Government agencies can place project-specific task orders – collectively capped at US$99 million – for the supply of IperionX titanium components and parts.

The SBIR program, administered by the U.S. Small Business Administration, progresses innovations through three stages. Phase III is reserved for commercialization activities, allowing Federal agencies to procure proven SBIR-funded technologies without further competition. This award recognizes IperionX’s readiness to deliver strategic titanium components for U.S. defense applications.

IperionX is working with U.S. DoD agencies on project task orders that will draw down on the contract ceiling. Initial titanium manufacturing and supply projects, expected to commence in the coming months, will include titanium fasteners produced using IperionX’s patented titanium production and advanced forging technologies. These titanium parts will be manufactured at IperionX’s Titanium Manufacturing Campus in Virginia, supporting local skilled jobs and strengthening the U.S. defense industrial base.

The contract aligns with recent U.S. Government funding priorities aimed at fortifying U.S. critical-material manufacturing capabilities. Task orders may encompass additional product forms outside of fasteners, including higher-value aerospace components, positioning IperionX as a partner in the U.S. DoD’s drive for secure, American made and cost-competitive titanium.

Anastasios (Taso) Arima, IperionX CEO commented:

“Securing this Phase III contract is a pivotal milestone for IperionX. It validates the performance of our technologies and underscores the Department of Defense’s commitment to reshore an all-American titanium supply chain. We look forward to delivering mission-critical components that are lighter, stronger and more cost-effective while reducing reliance on international supply chains.”

About IperionX

IperionX is a leading American titanium metal and critical materials company – using patented metal technologies to produce high performance titanium alloys, from titanium minerals or scrap titanium, at lower energy, cost and carbon emissions.

Our Titan critical minerals project is the largest JORC-compliant mineral resource of titanium, rare earth and zircon minerals sands in the United States.

IperionX’s titanium metal and critical minerals are essential for advanced U.S. industries including space, aerospace, defense, consumer electronics, hydrogen, automotive and additive manufacturing.

A link to the full release can be found here.

Contacts

Anastasios (Taso) Arima, Founder and CEO
Toby Symonds, President
Dominic Allen, Chief Commercial Officer

Investors: investorrelations@iperionx.com
Media: media@iperionx.com

+1 980 237 8900
www.iperionx.com

FAQ

What is the value of IperionX's (IPX) DoD SBIR Phase III contract?

The contract is an IDIQ (Indefinite Delivery, Indefinite Quantity) agreement worth up to US$99 million for titanium components and parts.

What will IperionX (IPX) initially produce under the DoD contract?

Initial projects will focus on manufacturing high-performance titanium fasteners for U.S. Department of Defense agencies.

Where will IperionX (IPX) manufacture the titanium components for the DoD?

The components will be manufactured at IperionX's Titanium Manufacturing Campus in Virginia.

What is significant about IperionX's SBIR Phase III status?

SBIR Phase III status indicates the technology is ready for commercialization and allows federal agencies to procure the technology without further competition.

How does the IperionX (IPX) contract support U.S. defense capabilities?

The contract strengthens the U.S. defense industrial base by providing domestic titanium production capabilities and reducing reliance on international supply chains.