Up 130% in a year, this ASX 200 stock just jumped on fresh US$25m funding for titanium scale-up

The company is up a staggering 3,200% in 5 years. Is there more to come?

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Key points

  • IperionX Ltd (ASX: IPX) shares rose 3% following a US$25 million funding boost from the US government, aimed at expanding titanium production capabilities.
  • The latest funding brings total government support to US$42.5 million, supporting increased U.S. titanium manufacturing to 1,400 metric tons annually at the Virginia facility.
  • IperionX is using this funding to enhance its U.S.-based titanium supply chain, aiming to support defense, aerospace, and manufacturing sectors with sustainable metals.

ASX 200 stock IperionX Ltd (ASX: IPX) shares are trading 3% higher today after the company reported it has secured an additional US$25 million in US government funding to boost its titanium production, taking total obligations under the existing award to US$42.5 million.

What did IperionX report?

  • US Department of War provided an extra US$25 million under IperionX's US$47.1 million award
  • Total government funding now stands at US$42.5 million, with US$4.6 million to be provided later
  • Funding supports scaling up production to 1,400 metric tons per year at the Virginia Titanium Manufacturing Campus
  • Previous funding tranches included US$12.5 million and US$5 million

What else do investors need to know?

IperionX says this latest round of funding will be used to ramp up advanced manufacturing capacity at its Virginia facility. The investment is part of the US government's effort to secure a domestic source of titanium, aiming to bolster defence supply chains and reduce reliance on imports.

Earlier funding supported equipment purchases and advanced the Titan Critical Minerals Project in Tennessee. The company notes it expects the remaining US$4.6 million from the US Department of War award to be received during the contract term.

What's next for IperionX?

IperionX plans to use the latest funding to increase titanium output and further its goal of establishing a resilient, integrated supply chain in the United States. The company's strategy includes ongoing development of both its Virginia manufacturing site and the Titan project in Tennessee.

Looking ahead, IperionX remains focused on delivering cost-effective, sustainable titanium metals and supporting growth in key sectors such as defence, aerospace, and advanced manufacturing.

IperionX share price snapshot

IperionX shares have soared more than 130% in a year, far outpacing the S&P/ASX 200 Index (ASX: XJO) which is up around 8% in that timeframe.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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