IperionX – June 2025 Quarterly Report

Rhea-AI Summary

IperionX (NASDAQ: IPX) reported significant progress in its June 2025 quarter, marking major operational milestones at its Titanium Manufacturing Campus in Virginia. The company has successfully commissioned all major scrap-to-forged titanium manufacturing equipment, with the HAMR furnace exceeding industry standards for titanium production.

The company secured substantial government backing, including a US$99 million SBIR Phase III IDIQ contract from the U.S. Department of Defense, adding to its previous US$47.1 million DoD funding. IperionX announced a US$46 million private placement to accelerate production expansion, bringing its pro-forma cash position to approximately US$100 million.

The company's Titan Critical Minerals Project, the largest critical mineral sands project in the U.S., continues progress with its Definitive Feasibility Study on track for Q2 2026 completion.

Positive

• Successful commissioning of all major titanium manufacturing equipment with HAMR furnace exceeding industry standards
• Secured US$99 million DoD IDIQ contract and US$47.1 million in additional DoD funding
• Raised US$46 million through private placement, strengthening cash position to US$100 million
• Commenced consumer-electronics scrap processing, validating circular supply chain capabilities
• Strong customer momentum across automotive, defense, and aerospace sectors

Negative

• DFS completion for Titan Project not expected until Q2 2026
• Additional shareholder dilution through 14 million new ordinary shares placement

Insights

Metals & Materials Technology Analyst

IperionX hits major milestones with titanium production online, securing $99M DoD contract and raising $46M for accelerated expansion.

IperionX has reached a critical inflection point with its Virginia Titanium Manufacturing Campus now fully operational. The successful commissioning of all major equipment—particularly the Hydrogen Assisted Metallothermic Reduction (HAMR) furnace—represents a technological breakthrough in titanium production. The company's unique ability to process titanium scrap into high-quality forged components using proprietary HAMR and HSPT technologies creates a compelling competitive advantage in an industry plagued by high costs and environmental concerns.

The Department of Defense SBIR Phase III contract (up to $99 million) coupled with the previously secured $47.1 million in DoD funding demonstrates exceptional governmental validation. This represents a strategic pivot point in U.S. critical materials policy, as titanium supply chains have historically been dependent on Russia and China. The company's dual focus on both titanium production and the Titan Critical Minerals Project positions it as a potential fully integrated supplier from minerals to manufactured components.

Most notably, early commissioning results indicate production throughput may exceed original nameplate capacity—a rare achievement in new metals processing facilities, which typically face efficiency challenges during ramp-up. The modular, low-capex nature of their production system enables capital-efficient scaling, with the newly announced $46 million private placement strategically timed to accelerate expansion plans.

The commencement of consumer electronics scrap processing validates the company's circular economy model, potentially transforming titanium economics by reducing dependence on primary ore sources. This vertical integration from recycled feedstock to finished components represents a fundamental shift in titanium manufacturing dynamics that could disrupt traditional supply chains across aerospace, defense, and automotive sectors.

Defense Industry Analyst

The Department of Defense's commitment to IperionX through a SBIR Phase III IDIQ contract worth up to $99 million represents a strategic shift in U.S. defense industrial policy. This contract mechanism is particularly significant as Phase III SBIR awards indicate technologies ready for deployment at scale. The first task order specifically targeting Army ground vehicle programs suggests immediate military applications rather than just research potential.

This contract comes in addition to the earlier $47.1 million DoD funding, bringing total potential government backing to $146.1 million—exceptional support for a company at this stage. The Pentagon is clearly implementing a broader strategy to secure domestic titanium supply chains against geopolitical vulnerabilities, particularly given traditional reliance on Russian titanium sources.

The dual-use nature of IperionX's technology—serving both defense and commercial markets—aligns perfectly with current defense procurement priorities that seek to leverage commercial innovation while building resilient supply chains. The company's ability to process titanium from both virgin and recycled sources creates strategic redundancy in material sourcing.

The Titan Critical Minerals Project adds another defense dimension through its rare earth elements, particularly heavy rare earths like dysprosium and terbium that are critical for advanced weapons systems. Current U.S. defense policy is actively promoting domestic sources of these materials to reduce dependence on Chinese supplies. IperionX's potential to provide both titanium and heavy rare earths positions it uniquely within the evolving defense industrial strategy focused on supply chain sovereignty for critical materials.

CHARLOTTE, N.C., July 23, 2025 (GLOBE NEWSWIRE) -- IperionX Limited (IperionX) (NASDAQ: IPX, ASX: IPX) is pleased to present its quarterly report for the period ending June 30, 2025. Key highlights during and subsequent to the end of the quarter include:

Commercial operations: production online and commissioning of all major equipment complete

• Successful commissioning of the Titanium Manufacturing Campus in Virginia, with all major scrap-to-forged titanium manufacturing equipment now online and proven to meet operational capacity.
• Repeated back-to-back production cycles of the Hydrogen Assisted Metallothermic Reduction (HAMR^TM) furnace continue to produce high-quality titanium that exceeds industry standards.
• Commissioning-phase process improvements have reinforced the low-capex modular scalability of the HAMR process and underscore strong potential to surpass original nameplate titanium powder production. Higher throughput capacities will be confirmed in the coming weeks.
• Commissioning of powder metallurgy and Hydrogen Sintering & Phase Transformation (HSPT^TM) forging systems are complete, underpinning production of near-net-shape and forged titanium components.

Strong momentum across commercial and strategic customer partnerships

• Customer activities accelerated during the quarter with increasing engagement across automotive, defense and aerospace, with a range of customers completing inspection and pre-qualification visits to the Titanium Manufacturing Campus in Virginia.
• Consumer-electronics scrap processing commenced, validating circular supply chain from recycled titanium feedstock to manufactured forged titanium parts, as announced in collaboration with ELG Utica on July 3, 2024.
• New verticals opening across mass industrial titanium manufacturing, where material manufacturing waste is typically high — including the production of titanium fasteners. These efforts are opening up new sales channels across aerospace, commercial, military, and large-scale commercial markets.
• IperionX is building a pipeline of partnerships with global manufacturers seeking to transition to low-cost, sustainable, circular, and traceable titanium supply chains.

U.S. Government backing to secure a low-cost domestic titanium supply chain

• IperionX received a Small Business Innovation Research (SBIR) Phase III Indefinite Delivery, Indefinite Quantity (IDIQ) contract allowing task order funding from U.S. Department of Defense (DoD) agencies up to a total of US$99 million.
• First task order awarded under the SBIR IDIQ contract to expedite the production and delivery of titanium parts for U.S. Army ground vehicle programs.
• The SBIR Phase III contract and task order are in addition to the US$47.1 million in DoD funding awarded to IperionX in the prior quarter to accelerate development of a secure, low-cost, mineral-to-metal titanium supply chain.
• IperionX continues to progress its long-term, tax-exempt bond financing through Virginia’s Halifax County Industrial Development Authority to underpin future titanium production expansions.

Titanium production expansion plans fast-tracked

• Strong customer momentum and U.S. Government funding commitments driving accelerated titanium production scale-up.
• Subsequent to the end of the quarter, on July 23, 2025, IperionX announced a private placement to raise approximately US$46 million.
• IperionX intends to use proceeds from the private placement to fast-track ordering of long-lead HAMR and HSPT modules, plus parallel expansion of forging capacity to meet 2026-2027 production schedules.
• Modular, low-capex design allows accelerated production growth phases through 2030.

Titan Critical Minerals Project: DFS to advance a vital U.S. critical minerals supply chain

• Definitive Feasibility Study (DFS) activities continued at the Titan Project, funded in part by the recent U.S. DoD award.
• Titan Project is the largest critical mineral sands project in the U.S. with a permitted multi-decade resource of titanium, zircon and rare earths.
• DFS remains on track for completion in Q2 2026, which will underpin a long-term future supply of titanium feedstock and heavy rare earths, including dysprosium and terbium - key elements for high-performance defense systems.
• Titan Project’s heavy rare earth resources, including dysprosium and terbium, complement light rare-earth assets recently backed by the DoD, positioning IperionX as a potential partner of choice for a complete domestic magnet supply chain.

Strong financial position

• At June 30, 2025, IperionX closed the quarter with US$55 million in cash.
• Subsequently, on July 23, 2025, IperionX announced that it had received firm commitments for a private placement of 14 million new ordinary shares at an issue price of A$5.00 per share, to raise approximately US$46 million before costs (Placement), resulting in pro-forma cash of approximately US$100 million.
• IperionX intends to use proceeds from the Placement for:
  • Accelerating Phase 2 capacity scale-up, with fast-track ordering of long lead time production and manufacturing equipment;
  • Scaling Phase 1 operations, including low-cost capital projects to further increase production over nameplate throughput capacities;
  • Scaling of HSPT pressing and furnace capacity to align with accelerated production scale-up; and
  • Operations, Phase 3 expansion studies and increased R&D.
• Directors subscribed for A$2.2 million (~US$1.4 million) under the Placement, subject to shareholder approval, reinforcing alignment with shareholders.

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 major milestones did IperionX (IPX) achieve in its June 2025 quarter?

IperionX successfully commissioned its Titanium Manufacturing Campus in Virginia, with all major scrap-to-forged titanium manufacturing equipment now online. The HAMR furnace is producing titanium exceeding industry standards.

How much funding did IperionX secure from the Department of Defense in 2025?

IperionX secured a US$99 million SBIR Phase III IDIQ contract and an additional US$47.1 million in DoD funding, totaling approximately US$146.1 million in potential DoD support.

What is IperionX's cash position after the July 2025 private placement?

After raising US$46 million through private placement, IperionX's pro-forma cash position is approximately US$100 million.

When will the Titan Project Definitive Feasibility Study be completed?

The Definitive Feasibility Study (DFS) for the Titan Project is scheduled for completion in Q2 2026.

What are IperionX's plans for the US$46 million private placement proceeds?

The proceeds will be used to fast-track ordering of HAMR and HSPT modules, expand forging capacity, scale Phase 1 operations, conduct Phase 3 expansion studies, and increase R&D efforts.