IperionX Receives $12.5M U.S. Government Funding to Accelerate Expansion of U.S. Titanium Production

Rhea-AI Summary

IperionX (NASDAQ: IPX) has secured $12.5 million in U.S. Department of Defense (DoD) funding as part of a larger $47.1 million award to strengthen the U.S. Defense Industrial Base. This funding will accelerate the expansion of titanium production capacity at IperionX's Virginia Titanium Manufacturing Campus to over 1,000 metric tons per year.

The funds will be used for purchasing long-lead capital equipment, including titanium deoxygenation, sintering, and powder metallurgy systems. This follows a previous $5 million obligation for the Titan Critical Minerals Project in Tennessee, bringing total funding to $17.5 million, with $29.6 million remaining to be obligated over the contract term.

Positive

• Secured $12.5M DoD funding from a larger $47.1M award
• Expansion of production capacity to over 1,000 metric tons per year
• Previous $5M funding received for Titan Critical Minerals Project
• Strong government endorsement for reshoring titanium production
• Additional $29.6M expected to be obligated over contract term

Negative

• Long-lead time required for capital equipment procurement
• Definitive feasibility study not completed until first half 2026

Insights

Defense Industry Financial Analyst

DoD's $12.5M funding accelerates IperionX's titanium production expansion, strengthening its position in critical defense supply chains.

The $12.5 million obligation from the Department of Defense represents a significant milestone in IperionX's titanium manufacturing scale-up strategy. This funding, part of a larger $47.1 million award, is specifically earmarked for purchasing long-lead capital equipment needed to expand production capacity to over 1,000 metric tons per year at the Virginia Titanium Manufacturing Campus.

The strategic importance of this funding cannot be overstated. The DoD's Industrial Base Analysis and Sustainment program has prioritized IperionX's expansion to address critical vulnerabilities in domestic titanium production capacity. This reflects growing concerns about supply chain resilience for defense-critical materials, particularly as geopolitical tensions increase competition for strategic resources.

With this funding, IperionX has now received $17.5 million of the total award, with an additional $29.6 million expected over the contract term. The company's modular scale-up approach allows for incremental capacity expansion while maintaining cash flow discipline – a crucial consideration for specialty materials producers.

The expansion includes critical production infrastructure across the titanium manufacturing value chain: deoxygenation systems, sintering and powder metallurgy consolidation, and near-net-shape component manufacturing. This vertical integration positions IperionX to capture higher margins across the titanium production lifecycle while offering greater supply chain visibility to defense customers.

This funding acceleration suggests the DoD sees urgent strategic value in developing domestic titanium manufacturing capabilities. For IperionX, securing these funds not only provides capital for expansion but also serves as a powerful vote of confidence from a major customer, potentially strengthening the company's position when pursuing additional defense and commercial contracts.

CHARLOTTE, N.C., Aug. 26, 2025 (GLOBE NEWSWIRE) -- IperionX Limited (IperionX) (NASDAQ: IPX, ASX: IPX), announces that the U.S. Department of Defense (DoD) has obligated US$12.5 million under IperionX’s previously announced US$47.1 million award to strengthen the U.S. Defense Industrial Base by accelerating the scale-up of a resilient, low-cost, and fully-integrated U.S. mineral-to-metal titanium supply chain.

In response to the strategic need for increased production capacity of domestic primary titanium metal and manufactured titanium metal components, the project scope under the Industrial Base Analysis and Sustainment (IBAS) program has been revised to prioritize accelerated expansion of IperionX’s titanium metal and manufacturing production capacity at IperionX’s Virginia Titanium Manufacturing Campus.

The US$12.5 million will be applied to purchase orders for long-lead, major capital equipment required for the next stage of capacity scale-up to over 1,000 metric tons per year at the Virginia Titanium Manufacturing Campus. Major incremental capacity categories include titanium deoxygenation, sintering and powder metallurgy consolidation systems; near-net-shape component manufacturing and ancillary infrastructure upgrades. IperionX will provide a market update with additional details on the accelerated growth plans for the Virginia Titanium Manufacturing Campus.

The US$12.5 million in funding follows on from the US$5 million previously obligated to advance the titanium, zircon and rare earth critical mineral-rich ‘Titan Critical Minerals Project’ in Tennessee to shovel-ready status, with a definitive feasibility study underway and on-track for completion in the first half of 2026.

Total funding obligations received under the DoD award now stand at US$17.5 million, with the remaining US$29.6 million expected to be obligated by the DoD over the contract term to support additional titanium production capacity at the Virginia Titanium Manufacturing Campus.

Anastasios (Taso) Arima, IperionX CEO said:

“This new U.S. Government obligation allows IperionX to move immediately to secure long-lead capital equipment and lock in manufacturing slots with key suppliers. It accelerates our imminent Virginia expansion beyond 1,000 tpa of high-performance titanium manufactured products, and advances a fully integrated, low-cost and traceable American titanium supply chain for defense and commercial customers.

We are executing a multi-phase modular scale-up in titanium production and manufacturing capacity — and this commitment from the DoD is a strong endorsement of our technology, our team, and our mission to reshore a resilient titanium production supply chain in the United States.”

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.

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

How much DoD funding did IperionX (IPX) receive in August 2025?

IperionX received $12.5 million from the Department of Defense as part of a larger $47.1 million award to strengthen the U.S. Defense Industrial Base.

What is the production capacity target for IperionX's Virginia Titanium Manufacturing Campus?

The facility is being expanded to achieve a production capacity of over 1,000 metric tons per year of titanium products.

How much total funding has IperionX received from the DoD award so far?

IperionX has received total funding obligations of $17.5 million, comprising $12.5 million for the Virginia facility and $5 million for the Tennessee project.

When will the Titan Critical Minerals Project feasibility study be completed?

The definitive feasibility study for the Tennessee-based Titan Critical Minerals Project is scheduled for completion in the first half of 2026.

What will the $12.5M DoD funding be used for?

The funding will be used to purchase long-lead capital equipment including titanium deoxygenation, sintering and powder metallurgy consolidation systems, near-net-shape component manufacturing, and infrastructure upgrades.