IperionX Limited stock soars on $99M DoD contract win

Investing.com -- Shares of IperionX Limited (NASDAQ:IPX, ASX:IPX) surged 22.3% following the news that the company has secured a substantial contract with the U.S. Department of Defense (DoD). The Small Business Innovation Research (SBIR) Phase III contract, which could total up to $99 million, is aimed at advancing "Low-Cost Domestic Titanium for Defense Applications" in the United States.

This Phase III contract allows for an Indefinite Delivery, Indefinite Quantity (IDIQ) funding mechanism, enabling IperionX to receive orders up to the contract’s maximum value for the supply of titanium components and parts. The contract is a significant affirmation of IperionX’s capabilities, as it facilitates the transition of its research and development efforts into scaled production specifically for U.S. Government use.

The initial projects under this contract will focus on manufacturing titanium fasteners for the DoD, leveraging IperionX’s patented titanium production and advanced forging technologies. Production is set to take place at the company’s Titanium Manufacturing Campus in Virginia, which is expected to support local skilled jobs and contribute to strengthening the U.S. defense industrial base.

The SBIR Phase III award underlines the U.S. Government’s current funding priorities, which emphasize reinforcing critical-material manufacturing capabilities within the country. The contract positions IperionX as a strategic partner in the U.S. DoD’s initiative to secure a reliable, domestically-produced, and cost-competitive titanium supply.

IperionX’s CEO, Anastasios (Taso) Arima, expressed the significance of this milestone, stating, “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.”

The contract award is a clear indicator of the company’s readiness to deliver on strategic defense applications and is expected to have a positive impact on IperionX’s commercial deployment strategy.

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