S&P/ASX 200 Index (ASX: XJO) mining stock IperionX Ltd (ASX: IPX) looks to be in the sweet spot amid surging global defence spending and the West's urgent push to secure reliable critical mineral resources.
Indeed, shares in the ASX titanium products producer have been on a tear since hitting one-year lows on 8 April.
How much of a tear?
Well, at market close on 7 April, you could have picked up IperionX shares for $2.17. On Friday, those same shares closed changing hands for $7.77 apiece, or a gain of 258%.
That's enough to turn a $6,000 investment into $21,483.87. In just six months.
But with those kinds of eye-popping gains already delivered, is it too late to invest in the ASX 200 mining stock?
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Why this booming ASX 200 mining stock could keep flying higher
Earlier this week, Grady Wulff, senior market analyst at Bell Direct, addressed how increased defence spending in Australia and across the world is throwing up fresh tailwinds for ASX critical metals shares, including IperionX.
Wulff noted:
Breaking it down, what actually goes into a drone, a jet engine, or a submarine? As many as 12 defence-critical raw minerals are needed including titanium, aluminium, copper, steel, graphite, rare earths, lithium, cobalt, gallium, tantalum and more,
She added, "Of Australia's estimated $39.1billion defence spend in 2024, critical minerals allocation was $8.8 billion."
And she noted that Australia's defence spend is ramping up to $58.4 billion in FY25/26.
And ASX 200 mining stocks producing titanium could see an ongoing boost in demand.
According to Wulff:
Titanium, often referred to as the "metal of the future", is seeing a resurgence as defence applications expand beyond aerospace into hypersonic weaponry, naval systems, and next-generation drones. The US Department of War recently increased procurement contracts worth up to US$99 million, reinforcing titanium's strategic importance.
Wulff said that IperionX appears well-placed to take advantage of this resurgence.
Indeed, the ASX 200 mining stock has already secured US$42.5 million of funding from the US government this year to expand its titanium production capabilities in the US state of Virginia.
"Locally, IperionX is positioning itself as a key domestic supplier, aligned with both US and Australian critical minerals security frameworks," she said.
Wulff added:
With costs falling from around US$75/kg to US$29/kg as production scales, and capacity set to lift from 200 tonnes per annum today to over 10,000 tonnes by 2030, the company's profitability outlook is improving rapidly.
As for the outlook for titanium, Wulff said, "Titanium prices remain elevated on the back of tight supply, rising defence demand, and ongoing sanctions on Russian suppliers, keeping the metal's long-term trajectory firmly bullish."
