IperionX shares soar on US defence contract
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More news: IperionX shares rocketed in morning trade after the US-based titanium company won a $153 million contract with the US Department of Defence.
Shares were up 20% to $4.45 at 11:10am AEST, having more than doubled in value since the start of April.
IperionX lands $153m US defence contract
The news: Titanium alloy manufacturer IperionX has secured a USD99 million ($152.5 million) through the US Department of Defence’s small business innovation research (SBIR) program to deliver fasteners like nuts, bolts and screws.
The context: The contract opens a USD99 million tab that allows qualifying departmental agencies to place project-specific orders for IperionX’s titanium components and parts without needing to conduct a competitive tender process.
The base contract is signed with the US Army Research Laboratory under the commercialisation stage of the SBIR program, which is designed to help technologies progress from a research and development stage to scaled production for US government applications.
IperionX is an ASX-listed company but is based in the US and will manufacture parts at its facility in Virginia.
What they said: “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,” IperionX CEO Anastasios Arima said.
“We look forward to delivering mission-critical components that are lighter, stronger and more cost-effective while reducing reliance on international supply chains.”
The source: ASX
