Velo3D Partners with U.S. Navy to Bolster Maritime Industrial Base Through Advanced 3D Printing of Critical Ship Components

Rhea-AI Summary

Velo3D (NASDAQ:VELO) has secured a $6 million contract with the U.S. Navy to develop and qualify copper nickel alloy (CuNi) for its Sapphire line of 3D printers. The partnership aims to accelerate ship repairs and enhance the maritime industrial base through advanced manufacturing capabilities.

The agreement includes qualifying CuNi for use in Velo3D's large-format Sapphire XC printer, which can produce parts up to 600mm in diameter and 550mm in height. The company's Rapid Production Solution (RPS) will enable faster production of mission-critical parts compared to traditional casting methods, improving shipbuilding schedules and supply chain resilience.

The qualification process will be conducted at Velo3D's U.S.-based facility in Fremont, California, in collaboration with a domestic metal powder supplier, ensuring supply chain independence for the Navy.

Positive

• Secured $6M contract with U.S. Navy for CuNi alloy development
• First U.S.-based OEM to develop CuNi for domestic LPBF systems
• Partnership with domestic powder supplier ensures supply chain independence
• Systems meet DoD cybersecurity standards for military network integration

Negative

• None.

Insights

Defense Technology Analyst

Velo3D's $6M Navy contract for CuNi printing capabilities enhances its competitive position in the defense sector with significant revenue potential.

Velo3D's $6 million contract with the U.S. Navy represents a strategic advancement in the company's defense sector positioning. The agreement focuses on qualifying copper nickel alloy (CuNi) for use in their Sapphire printers, particularly their large-format Sapphire XC system. This development directly addresses a critical naval manufacturing challenge - CuNi components are essential for maritime applications due to their corrosion resistance, but traditional casting methods cause significant production bottlenecks.

The technical breakthrough here is substantial. By developing CuNi qualification for large-format Laser Powder-Bed Fusion (LPBF) technology, Velo3D is creating proprietary capabilities that few competitors can match. Their Rapid Production Solution offers three vital advantages: dramatically reduced lead times compared to traditional casting methods, enhanced part reliability through advanced manufacturing techniques, and surge capacity that aligns with fluctuating defense demands.

From a defense industrial base perspective, this partnership addresses a crucial vulnerability in naval maintenance operations. Ship repair delays have been a persistent problem affecting fleet readiness. By providing on-demand production of complex CuNi components, Velo3D potentially solves a supply chain weakness while establishing themselves as a technology leader with a first-mover advantage in this specialized application. Their domestic development and production capabilities, combined with U.S.-based powder suppliers, further strengthen their strategic alignment with defense priorities emphasizing secure supply chains.

Manufacturing Technology Specialist

The technical significance of Velo3D's CuNi development cannot be overstated. Copper nickel alloys present exceptional challenges for additive manufacturing due to their high thermal conductivity and reflectivity properties that make laser melting difficult. By qualifying this material for their Sapphire XC system, Velo3D is overcoming substantial technical barriers that have limited industrial applications of metal 3D printing.

Their large-format Sapphire XC printer, with build volumes up to 600mm in diameter and 550mm in height, allows for production of substantially larger components than typically possible with additive manufacturing. This size capability, combined with the CuNi material qualification, opens new applications beyond just replacement parts – it enables novel component designs that weren't feasible with traditional manufacturing methods.

The company's layer-by-layer in-situ process monitoring represents a critical quality assurance capability for defense applications, where part certification and validation are paramount. This advanced monitoring system allows real-time verification of build quality, substantially reducing certification timelines for critical components and enabling the technology to address high-reliability applications.

From a manufacturing economics perspective, the value proposition extends beyond just faster production. Traditional casting of complex CuNi components often requires extensive post-processing and rework, driving up total production costs. Velo3D's approach potentially eliminates many of these secondary operations, improving not just lead times but also overall economics while reducing material waste. This positions their technology as a compelling alternative to conventional manufacturing for specialized maritime components, with implications extending well beyond the initial $6 million contract value.

The two agreements include purchase of Velo3D's large-format Sapphire XC printer and establishing a service agreement in support of key research and development, qualification, and part fabrication efforts

FREMONT, Calif., Aug. 21, 2025 /PRNewswire/ -- Velo3D, Inc. (Nasdaq: VELO), a leading additive manufacturing technology company for mission-critical metal parts, has entered a contract, valued at $6M USD, to develop and qualify copper nickel alloy (CuNi) for use in its line of Sapphire printers. The agreement, which includes qualifying the alloy for use in Velo3D's large-format Laser Powder-Bed Fusion (LPBF) Sapphire XC printer, supports the U.S. Navy Maritime Industrial Base Program's efforts to accelerate ship repairs.

CuNi is leveraged in naval applications due to its exceptional seawater corrosion resistance. However, traditional casting of CuNi presents significant manufacturing challenges, often requiring extensive rework, increasing total costs and lead times. Velo3D's Rapid Production Solution (RPS) can develop and produce these parts in less time than traditional casting sourcing and can be used to improve shipbuilding schedules and supply chain resiliency.

Velo3D's RPS leverages its systems, expertise, and surge capacity solutions to enable scalable production of mission-critical parts that support U.S. Navy applications

"Velo3D is proud to be the first U.S.-based OEM with domestically developed Laser Powder-Bed Fusion additive manufacturing solutions to develop CuNi for its systems," said Arun Jeldi, Velo3D CEO. "Through our Rapid Production Solution, we are helping provide faster part delivery, enhanced reliability, and the surge capacity needed to meet evolving defense demands."

The CuNi qualification process is being performed by Velo3D's U.S.-based development team in Fremont, California. The effort is also conducted in collaboration with a domestic, openly sourced metal powder supplier, ensuring supply chain independence for the Navy.

All Sapphire printers are assembled in the United States, and the large-format Sapphire XC—capable of printing parts up to 600 mm in diameter and 550 mm in height—could be the first printer of its size to qualify CuNi parts. This advancement significantly expands addressable applications, enabling larger part production while offering the many benefits of LPBF technology, such as higher fidelity printing and Velo3D's best in class layer-by-layer in-situ process monitoring.

Velo3D's systems meet DoD cybersecurity standards and can connect securely to military networks, ensuring integrity and security for critical manufacturing operations.

This partnership represents Velo 3D's efforts to support ship maintenance modernization and reduce repair delays that impact fleet readiness.

About the Maritime Industrial Base Program:

The Navy's Maritime Industrial Base Program was established to develop, implement, and execute a plan to stabilize, enhance, and grow the maritime industrial base by addressing the wide range of challenges to industrial base capacity, capability, and workforce. For more information, visit https://www.secnav.navy.mil/rda/mib/Pages/default.aspx

About Velo3D:

Velo3D is a metal 3D printing technology company. 3D printing—also known as additive manufacturing (AM)—has a unique ability to improve the way high-value metal parts are built. However, legacy metal AM has been greatly limited in its capabilities since its invention almost 30 years ago. This has prevented the technology from being used to create the most valuable and impactful parts, restricting its use to specific niches where the limitations were acceptable.

Velo3D has overcome these limitations so engineers can design and print the parts they want. The company's solution unlocks a wide breadth of design freedom and enables customers in space exploration, aviation, power generation, energy, and semiconductor to innovate the future in their respective industries. Using Velo3D, these customers can now build mission-critical metal parts that were previously impossible to manufacture. The fully integrated solution includes the Flow print preparation software, the Sapphire family of printers, and the Assure quality control system—all of which are powered by Velo3D's Intelligent Fusion manufacturing process. The company delivered its first Sapphire system in 2018 and has been a strategic partner to innovators such as SpaceX, Aerojet Rocketdyne, Lockheed Martin, Avio, and General Motors. Velo3D was named as one of Fast Company's Most Innovative Companies for 2023. For more information, please visit Velo3D.com, or follow the company on LinkedIn.

VELO, VELO3D, SAPPHIRE and INTELLIGENT FUSION, are registered trademarks of Velo3D, Inc.; and WITHOUT COMPROMISE, FLOW, FLOW DEVELOPER, and ASSURE are trademarks of Velo3D, Inc. All Rights Reserved © Velo3D, Inc.

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SOURCE Velo3D, Inc.

FAQ

What is the value of Velo3D's contract with the U.S. Navy?

Velo3D secured a $6 million contract with the U.S. Navy to develop and qualify copper nickel alloy for its Sapphire printers.

What are the capabilities of Velo3D's Sapphire XC printer?

The Sapphire XC printer can produce parts up to 600mm in diameter and 550mm in height, making it suitable for large-format maritime component manufacturing.

How will Velo3D's technology benefit U.S. Navy ship repairs?

Velo3D's Rapid Production Solution can produce parts faster than traditional casting methods, improving shipbuilding schedules and reducing repair delays that impact fleet readiness.

Where will Velo3D conduct the CuNi qualification process?

The qualification process will be conducted at Velo3D's U.S.-based development facility in Fremont, California, in collaboration with a domestic metal powder supplier.

What makes CuNi important for naval applications?

Copper nickel alloy (CuNi) is valued in naval applications for its exceptional seawater corrosion resistance, though traditional casting presents manufacturing challenges.