Shares in IperionX Ltd (ASX: IPX) are tumbling on Thursday after the advanced materials company released its latest update.
At the time of writing, the IperionX share price is down 16.81% to $5.94.
Despite the heavy sell-off, the stock is still up about 6% in 2026 and remains well above where it traded a year ago.
So, what has triggered such a big reaction from investors?
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A deeper loss in the latest results
According to the company's half-year report for the 6 months to 31 December 2025, IperionX recorded a net loss of US$34.8 million.
This widened significantly from the US$16.2 million loss reported in the prior corresponding period.
The increase was largely driven by higher spending across several areas. Much of this relates to developing titanium production technology and scaling operations.
Research and development expenses came in at around US$10.8 million, reflecting ongoing work on IperionX's proprietary titanium manufacturing processes.
Exploration and evaluation costs also rose to US$3.3 million, linked to progress on the company's Titan Critical Minerals Project in Tennessee.
Meanwhile, corporate and administrative costs increased to roughly US$16.1 million, as the company expanded its operations and workforce.
Heavy investment in titanium production
Management says the spending reflects a major build out of its titanium manufacturing capabilities in the United States.
IperionX is developing technologies aimed at producing low-cost, low carbon titanium metal using recycled scrap titanium and domestically sourced minerals.
During the period, the company continued ramping up activity at its titanium manufacturing campus in Virginia, which is expected to scale production significantly in coming years.
The company also highlighted progress on its plan to expand production capacity to around 1,400 tonnes per year by 2027.
In addition, IperionX continues working toward a definitive feasibility study (DFS) for the Titan Critical Minerals Project. This project could provide a large domestic source of titanium, zircon, and rare earth minerals.
Strong government backing and new orders
Despite the larger losses, the company pointed to several strategic milestones during the period.
One key highlight was ongoing support from the US government, which is funding efforts to build a secure domestic titanium supply chain.
IperionX has previously been awarded funding and contract opportunities worth up to US$99 million through the US Department of War.
The company also secured a prototype purchase order worth US$300,000 linked to a defence program involving advanced titanium components.
Management believes these partnerships could open the door to significantly larger commercial contracts in the future.
What's next for IperionX?
IperionX is still in the development phase, so losses are expected as it invests heavily in technology and production capacity.
However, management's long-term strategy is ambitious.
The company aims to become a leading US producer of high-performance titanium components. It is targeting production of more than 10,000 tonnes per year by 2030.
Whether the company can successfully scale production and achieve those goals will be something to watch closely.
