IperionX Limited (IperionX) (NASDAQ: IPX) shares gained sharply, on announcing that it has been awarded a contract for up to US$47.1 million in funding by the U.S. Department of Defense (DoD) to strengthen the U.S. Defense Industrial Base by accelerating development of a resilient, low-cost, and fully-integrated U.S. mineral-to-metal titanium supply chain.
This strategic partnership represents a combined investment of US$70.7 million between IperionX and the DoD to fund a two-phase development program over a two-year period. The agreement aims to strengthen U.S. titanium production capabilities, supporting national security and economic resilience.
As part of the initial phase, the DoD has obligated US$5 million through the Industrial Base Analysis and Sustainment (IBAS) program and IperionX will contribute US$1 million, to expedite the Titan Critical Minerals Project in Tennessee to ‘shovel-ready’ status, an important milestone in securing a new domestic source of titanium, rare earths and zircon critical minerals.
The remaining US$42.1 million awarded under the contract is expected to be obligated by the DoD over the duration of the agreement, with the funds to be applied to facilitating vertical integration and increased titanium production capacity at IperionX’s Titanium Manufacturing Campus in Virginia.
IPX shares popped $3.62, or 14%, to $29.48
