Pentagon Backs IperionX to Forge U.S. Titanium Independence

CHARLOTTE, NC – January 16, 2026 – The U.S. Department of War has made a decisive move to strengthen America's fragile titanium supply chain, obligating the final US$4.6 million of a major award to IperionX and transferring a massive cache of high-quality scrap metal to the company at no cost. This dual action completes a US$47.1 million commitment aimed at creating a resilient, low-cost, and domestically-sourced titanium industry, a material critical for national defense and advanced manufacturing.

IperionX announced the final funding tranche, facilitated through the DoD's Industrial Base Analysis and Sustainment (IBAS) program, will be used to accelerate the expansion of its Titanium Manufacturing Campus in Virginia. The goal is to scale production from its current capacity of 200 metric tons per year (tpa) to an ambitious 1,400 tpa. In a significant vote of confidence, the U.S. Government is also transferring approximately 290 metric tons of surplus Ti-64 titanium alloy scrap to the company. This stockpile represents roughly 1.5 years' worth of feedstock at IperionX's current full operating capacity, providing a substantial, cost-free runway for its expansion efforts.

Fortifying a Critical National Defense Link

This investment is a direct response to a long-recognized strategic vulnerability. The United States is alarmingly dependent on foreign nations for titanium, a metal prized for its high strength-to-weight ratio and corrosion resistance, making it indispensable for fighter jets, naval vessels, missiles, and space applications. According to government data, the U.S. imports over 95% of its titanium sponge, the primary form of the metal used in aerospace applications, with Japan being the dominant supplier. Furthermore, the global market is heavily influenced by Russia and China, creating significant geopolitical risks.

The conflict in Ukraine sent shockwaves through the industry, disrupting supply chains and extending production timelines for critical components from months to over a year. The DoD's IBAS program was specifically designed to mitigate such risks by re-shoring essential industrial capabilities. By funding IperionX, the government is not just investing in a single company, but in a foundational pillar of its long-term strategy to ensure a secure, uninterruptible domestic source of materials vital to national security. The move aims to decouple America's defense industrial base from the volatility of global supply chains and potential adversarial control.

A Revolution in Green Metal Production

At the heart of this strategic partnership is IperionX’s disruptive and patented technology, which promises to reshape titanium production. Unlike the traditional, energy-intensive Kroll process developed in the 1940s, IperionX’s methods offer a more sustainable and cost-effective alternative. The company's Hydrogen Assisted Metallothermic Reduction (HAMR) and Granulation Sintering Hydrogen Assisted Deoxygenation (GSD) processes operate at lower temperatures and can produce high-performance titanium directly from either scrap metal or titanium minerals.

Crucially, this technology enables a 100% circular titanium economy. It can process a wide variety of scrap, including lower-quality, high-oxygen material that is typically downcycled or sent to landfills, and transform it back into high-value metal. This capability is a game-changer for resource efficiency and waste reduction. Independent Life Cycle Assessments have validated the environmental benefits, showing that IperionX's 100% recycled titanium powder boasts a carbon footprint over 90% lower than competing powders produced via conventional methods. The company's Virginia campus further enhances its green credentials by running on 100% renewable energy, procured through local wind and solar certificates.

This focus on sustainability is not just an environmental bonus; it’s a core competitive advantage. By producing titanium with significantly lower energy, cost, and carbon emissions, IperionX is positioning its products to be attractive to a growing number of industries with strict environmental, social, and governance (ESG) mandates.

Catalyzing Growth and Market Disruption

The combined government support of non-dilutive funding and free feedstock acts as a powerful catalyst for IperionX’s growth. The US$47.1 million award, coupled with the company's existing cash reserves, significantly de-risks the estimated US$75 million capital expenditure required for the Virginia plant's expansion. Analysts have responded positively, with a consensus “Strong Buy” rating and projections that IperionX is on a path to become the nation's largest titanium powder producer.

The scale-up to 1,400 tpa is a critical step, but the company has even larger ambitions, targeting a capacity of over 10,000 tpa by 2030. Achieving this scale is expected to dramatically lower production costs, with projections targeting a unit cost of approximately US$29 per kilogram for titanium powder. Such a price point would make American-made, sustainable titanium competitive not only in its traditional aerospace and defense markets but could also unlock new applications in the automotive, consumer electronics, and medical device industries, where cost has historically been a barrier to wider adoption.

This government-private sector partnership exemplifies a new approach to industrial strategy, where national security objectives align with technological innovation and environmental stewardship. By backing IperionX, the Department of War is placing a strategic bet on a technology that could provide the U.S. with a secure, cost-effective, and sustainable supply of a metal that is foundational to its future economic and military strength.