The AML3D Ltd (ASX: AL3) share price is rocketing during afternoon trade. This comes after the advanced 3D parts manufacturer announced that it has entered the aerospace market.
At the time of writing, AML3D shares are swapping hands for 18 cents, up 20% for the day.
AML3D ventures into space technology
In today's statement, AML3D advised that it has entered into a supply agreement with a leading North American aerospace company.
The deal will see AML3D produce specialised 3D printed high strength alloy parts for a bespoke prototype.
Little details were offered due to the highly sensitive nature of the contract. As such, the name of the aerospace company was withheld as well as the type of product and associated revenue.
AML3D noted that it was selected because of the high-strength and robust properties of its Wire Additive Manufacturing (WAM) process.
The company's WAM technology uses 3D metal printers to weld metal wire to create near net shapes. This is considered a more sustainable way of manufacturing as compared to machining from billet, reducing material waste by 80%.
In addition, utilising WAM technology significantly reduces the cost of manufacturing as well as the time to build. This allows clients to customise parts for their specific needs.
A number of relationships are being forged with aerospace companies both in Australia and overseas to capture significant growth opportunities.
AML3D managing director Andrew Sales commented:
To have secured a key purchase order for prototype with a globally recognised space exploration company is further validation of our technological capability at AML3D.
…I am confident that the momentum generated from this new aerospace purchase order will deliver a strong pipeline of opportunities in global space exploration part production both here in Australia and internationally, as we continue to demonstrate our capabilities to companies within this particular sector. AML3D has the desire and expertise to play a significant role in this burgeoning industry.
Market opportunity for 3D printing
The addressable market for 3D printing is growing at a fast rate. Particularly given COVID-19 disrupted international supply chains, the industry is now seeking to minimise risk by adopting 3D printing technology. This allows companies to manufacture complex 3D metal parts in-house without relying on global logistics.
As such the total addressable market for 3D printing is estimated to be around US$10 billion. In the next 5 years (2026), the 3D printing market is forecasted to increase to US$63 billion.
AML3D share price snapshot
Regardless of today's strong rise, AML3D shares are down almost 50% since the beginning of the year. When looking at the past 12 months, its shares have fared no better, down by more than 54%.
The company's share price reached a 52-week high of 50 cents last September. This came on the back of its contract with Austal Limited (ASX: ASB) to co-develop components for maritime defence applications. However, since then its shares have continued on a downhill trajectory.
