AML3D outlines growth plans with strong US investments to limit tariff risks
April 30, 2025
AML3D Limited, headquartered in Edinburgh, Australia, has released its Quarterly Activities Report and Appendix 4C for the quarter ended March 31, 2025. The company reported that it maintained a strong cash position (AU$31.4 million) during the quarter, which will be used to fund its next growth phase. This will include a AU$12 million investment to double its US manufacturing capacity and a AU$5 million investment to establish operations in Europe.
In the reported quarter, AML3D has already more than doubled investment in its US facilities and technology leadership programme compared to the prior corresponding period. This US investment has seen the establishment of a technology centre and manufacturing hub in Ohio to access the strong growth in demand for Additive Manufacturing across both the US defence and industrial manufacturing sectors.
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Growth strategy: US market
During the quarter, AML3D continued to invest in extending its manufacturing capacity of the recently established US operations. The investment programme included a second machine from AML3D’s proprietary ARCEMY large-scale Wire Arc Directed Energy Deposition (DED) machine range for production use.
AML3D aims to continue its US investments to keep pace with accelerated demand. The US demand is expected to be further bolstered by the award of US$951 million by the US Department of Defense to Blue Forge Alliance (BFA), a key US partner of AML3D, to support the adoption of advanced manufacturing technologies to support the US Navy’s submarine industrial base.
The relationship between AML3D and BFA was built on the successful delivery of several component manufacturing and alloy testing contracts, including the supply of US Navy Virginia Class submarine tail piece components during the December 2024 quarter. AML3D is also supplying ARCEMY machines in support of the US Navy submarine industrial base, including the largest-ever custom ARCEMY machine at the US Navy’s Daneville Centre of Excellence for Additive Manufacturing run by Austal USA. The installation of this custom ARCEMY machine follows the installation of a large-scale ARCEMY X machine in early 2024.
With the impact of the new wave of US tariffs yet to be felt, AML3D believes it will be in a financially advantageous position compared to competing technologies that have not localised their manufacturing. Whilst the US operations will not be entirely immune to the flow-on effects of the tariffs, the onshoring of manufacturing capabilities within the US is likely to minimise the impact on future US sales.
During the quarter under review, AML3D CEO Sean Ebert undertook a fourteen-day, ten-site tour of the US, including meetings with US senators, defence and industry partners and key opinion leaders. AML3D’s deployment of ARCEMY technology in support of the US Navy’s Submarine Industrial base is said to be positioning the company to potentially access Additive Manufacturing contracts to support the broader US Navy Marine Industrial base, specifically across shipbuilding and munitions.
The company’s US growth strategy also includes expanding into non-defence sectors such as utilities, aerospace, marine, and oil & gas. AML3D’s US operations are already working on a AU$2.27 million ARCEMY X order from the Tennessee Valley Authority (TVA), the largest US public utility, to support its power generation repair capability. Final commissioning of the TVA’s ARCEMY X is due in the first half of 2026. This entry into the US utilities sector builds on AML3D’s successful delivery of non-defence test components for both Boeing and Chevron, which includes a Manufacturing License Agreement with Boeing Defence and Space.
AML3D is reportedly one of only two Additive Manufacturing companies globally with AS9100D certification for aviation, space and defence manufacturing. During the March 2025 quarter, a surveillance audit to confirm AML3D’s compliance with AS9100D was completed.
Growth Strategy: EU and Australia
AML3D is also developing an entry programme into the European market, with an initial focus on the UK Defence market. According to the company, the UK is displaying demand signals similar to those that preceded the successful entry into the US defence market. Post quarter end, an initial material feasibility contract with a Tier 1 UK defence contractor was signed, which is expected to be the first in a series of UK Defence contracts.
AML3D’s European operations will focus on the appointment of a distributor in the region, which will be supported by the company’s Australian facility. Initially, AML3D plans to leverage its US growth strategy playbook in Europe by targeting the UK defence sector, with plans to explore additional opportunities across the broader European defence, utilities, aerospace, marine and oil & gas sectors thereafter.
In the Australian market, AML3D has successfully delivered marine and aerospace test parts for the Australian Government Defence Science and Technology Group (DSTG) and prototype parts to support BAE Systems Maritime Australia’s contract to design and build the Hunter-class frigates for the Royal Australian Navy. AML3D hopes to leverage its track record to drive growth within the Australian defence sector, while also exploring opportunities to expand into non-defence sectors in Australia.
R&D Investment
The remaining 50% of AML3D’s AU$0.7 million property, plant, and equipment investment for the quarter was allocated to the ARCEMY Increased Deposition Rate (AIDR) project and the construction of a prototype AIDR machine. AIDR is intended to increase the speed with which AML3D’s ARCEMY machines can manufacture components.
During the March 2025 quarter, AML3D received AU$186,000 from the SA Government as the first instalment in an AU$2.24 million dollar-for-dollar investment with AML3D in the AIDR project.
