IperionX confirms higher capacity titanium powder and component manufacturing
IperionX, based in Charlotte, North Carolina, USA, has released its quarterly report for the period ending September 30, closing with $79.2 million in cash.
During Q3, the company stated that all planned major manufacturing equipment – for both titanium powder production and component manufacturing – came into operation at its Titanium Manufacturing Campus in Virginia. It has also begun the upfit of a new facility in Halifax County, Virginia, with HAMR and HSPT technologies.
Process improvements and optimisation are attributed to the reported 60% increase in nameplate titanium powder production capacity without additional capital spend. Further increases in production capacity are expected in 2026 with the goal of targeting cost competitiveness with stainless steel and aluminium by 2030.
Titanium manufacturing sales are also expected to progressively scale through 2026, with the company expecting positive EBITDA inflection point projected by year-end 2026.
Using scrap supplied by a consumer electronics OEM, IperionX is now producing a range of consumer electronic components as specified in the customer contract. The company has also begun the production of various fasteners, having received initial purchase orders for the delivery of a range of fastener products into applications for the US military and commercial and industrial markets.
US government support
The company is now scaling titanium capacity to 1,400 tpa, with commissioning planned for mid-2027. This is anticipated to accelerate a more resilient and sustainable US titanium supply chain, cutting reliance on foreign imports and supporting national security for aerospace, defence, and electric vehicles.
It stated that $42.5 million of the $75 million capital for the expansion is being funded via the US Department of Defense (DoD) Industrial Base Analysis and Sustainment (IBAS) award. A further $4.6 million is expected to be obligated over the contract term, enabling IperionX to finalise its scale-up plans to achieve a production capacity of 1,400 metric tonnes of titanium per year.
Private placement
In July, IperionX announced that it had received firm commitments for a private placement of 14 million new ordinary shares at an issue price of A$5.00 per share, to raise A$70 million (US$46 million) before costs, resulting in pro-forma cash of approximately US$100 million.
Proceeds from the private placement will be used for:
- Acceleration of Phase 2 capacity scale-up, with fast-track ordering of long lead time production and manufacturing equipment
- Scaling Phase 1 operations, including low-cost capital projects to further increase production over nameplate throughput capacities
- Scaling of HSPT pressing and furnace capacity to align with accelerated production scale-up
- Phase 3 expansion studies and increased R&D.
Directors and key management subscribed for A$2.2 million (US$1.4 million), following shareholder approval.
The full Q3 report is available here.
