Velo3D secures $6m contract to develop copper nickel alloy for US Navy

Published 21/08/2025, 14:10
Velo3D secures $6m contract to develop copper nickel alloy for US Navy

FREMONT, California - Velo3D, Inc. (NASDAQ:VELO) has secured a $6 million contract to develop and qualify copper nickel alloy for use in its line of Sapphire 3D printers, the company announced Thursday. The stock, currently trading at $3.16, has experienced significant volatility this year, moving within a 52-week range of $1.42 to $29.25.

The agreement includes qualifying the alloy for use in Velo3D’s large-format Laser Powder-Bed Fusion Sapphire XC printer and supports the U.S. Navy Maritime Industrial Base Program’s efforts to accelerate ship repairs. For deeper insights into industrial technology companies and their government contracts, InvestingPro offers exclusive analysis and valuation metrics.

Copper nickel alloy is used in naval applications due to its seawater corrosion resistance, but traditional casting methods often require extensive rework, increasing costs and lead times. Velo3D’s technology aims to produce these parts more quickly than traditional methods.

"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.

The qualification process is being performed at Velo3D’s facility in Fremont, California, in collaboration with a domestic metal powder supplier to ensure supply chain independence for the Navy.

The company’s large-format Sapphire XC printer, capable of producing parts up to 600 mm in diameter and 550 mm in height, could be the first printer of its size to qualify copper nickel parts. All Sapphire printers are assembled in the United States.

Velo3D’s systems meet Department of Defense cybersecurity standards and can connect securely to military networks, according to the company’s press release statement.

The partnership aims to support ship maintenance modernization and reduce repair delays affecting fleet readiness. Despite the strategic importance of this contract, VELO shares have declined 68.79% year-to-date, highlighting the challenging market conditions in the industrial 3D printing sector. Get comprehensive industry analysis and more detailed metrics with InvestingPro.

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