The US Army has issued a second task order to IperionX under its existing $99 million SBIR Phase III contract, committing $11.5 million in immediate funding to expand the company’s titanium powder-to-part manufacturing capacity at its Virginia facility.
The award advances IperionX’s role in building a domestic titanium manufacturing capability that reduces reliance on foreign feedstocks and external finishing suppliers.
Designated W911QX26FA097 and issued by US Army Contracting Command at Aberdeen Proving Ground, the task order carries a stated base value of $18.5 million on a firm-fixed-price basis. Of that, $11.5 million is currently funded and obligated across three fully covered work packages and a partial allotment to a fourth.
An additional $6.9 million in unexercised and unfunded options could push the maximum potential value to $25.4 million, subject to US Government discretion. The period of performance runs from August 28, 2026 to August 27, 2030.
Together, Task Orders 1 and 2 carry an aggregate stated value of approximately $19.8 million, leaving $79.2 million still available under the $99 million IDIQ ceiling.
Funding Targets Production-Scale Equipment
Three of the four base work packages are fully funded. The largest, at $7.1 million, funds industrial-scale continuous furnaces for HSPT processing and dehydrogenation, intended to produce titanium track pins and bolts at production scale for Army ground-combat applications. Inspection and acceptance are planned at Detroit Arsenal in Michigan.
A separate $3.4 million package funds a smaller continuous HSPT furnace to demonstrate repeatable processing of titanium bolts and evaluate unit costs against Army requirements. A third package, at $1 million, funds centerless grinding and thread-rolling equipment at the Virginia facility to bring fastener finishing in-house.
The fourth base package, also priced at $7.1 million, covers industrial-scale batch HSPT and dehydrogenation furnaces but currently has only $100,000 allotted. The remaining scope is unfunded and contingent on additional government authorization.
IperionX’s manufacturing platform rests on two linked proprietary processes. HAMR converts titanium scrap or mineral feedstocks into low-oxygen titanium powder. HSPT then consolidates that powder into near-net-shape components with a wrought-like microstructure. Currently both processes run in batch mode.
The funding under Task Order 2 is aimed at transitioning HSPT to continuous operation. The program is designed to increase throughput, improve process consistency, and reduce unit costs at scale. On the powder production side, IperionX is separately developing GenX, a next-generation continuous HAMR platform, though that program is not funded under this task order.
Bringing fastener finishing in-house addresses a specific bottleneck. Until now, IperionX has relied on external suppliers for centerless grinding and thread rolling. The new equipment is expected to give the company greater control over production schedules, quality, and cost, while shortening lead times and retaining more of the fastener value chain within its Virginia facility.
The $6.9 million in option line items, if exercised and funded, would extend IperionX’s technology platform into two adjacent areas. One covers aerospace-grade titanium components, where a $1 million option would fund a demonstration combining binder-jet printing with HSPT for an unnamed leading global aerospace and defense supplier.
The other covers refractory metals, where three options totaling $5.9 million, developed with Global Advanced Metals and an unnamed large advanced materials company, target C103 alloy scrap recycling, niobium reduction, powder spheroidization, and scaled refractory powder production.
C103 is a niobium-hafnium-titanium alloy used in rocket engine thrust chambers, spacecraft reaction-control systems, and hypersonic propulsion. Its adoption in additive manufacturing depends on access to tightly specified, low-oxygen powder, which is currently in limited and costly supply.
The option workstreams, if funded, would establish a domestic pathway spanning C103 scrap recycling through to spherical powder production, though all four options remain unexercised and are subject to additional funding, technical validation, and customer qualification.
Task Order 2 is not the only government funding IperionX is drawing on. The company has separately received $59.8 million in fully obligated reimbursable funding under the Defense Production Act Title III and Industrial Base Analysis and Sustainment programs, aimed at expanding domestic titanium production capacity.
The Army has also transferred approximately 290 metric tons of titanium alloy scrap to IperionX at no cost, providing a domestic feedstock base for recycled titanium production. Task Order 1, valued at $1.3 million, initiated the development of low-cost American titanium components for defense applications.
The task order can be terminated, in whole or in part, by the US Government at any time and at its discretion.
Domestic Feedstock and Qualification Constraints
The federal push to fund domestic titanium and refractory metal processing extends beyond IperionX. In April 2026, 6K Additive received a roughly $2 million Phase II contract to recover and repurpose titanium, niobium, tungsten, and nickel scrap from US military depots into high-grade powders for defense applications. The program addresses a domestic feedstock constraint by converting scrap from US military sites into powders that can be tested against requirements for conventionally sourced virgin metals.
The qualification barrier facing any domestic C103 powder program is also visible elsewhere. In July 2025, Velo3D and Amaero advanced qualification of C103 niobium powder through Auburn University’s National Center for Additive Manufacturing Excellence, demonstrating conformance with ASTM F3635 Class B and AMS7015 standards, with over 1,000 kg scheduled for deployment in Velo3D’s Sapphire systems.
The standards milestone was followed by system-specific validation and print testing, showing that material conformance alone does not complete the qualification process. For IperionX, this provides context for the additional technical validation and customer qualification that its unfunded C103 option workstreams would require before production use.
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Featured image shows HAMR: IperionX’s patented technology for titanium powder production. Photo via IperionX.
Facts Only
* The US Army issued a second task order to IperionX under the $99 million SBIR Phase III contract, committing $11.5 million in immediate funding.
* The funding expands titanium powder-to-part manufacturing capacity at the Virginia facility.
* Task Order W911QX26FA097 has a stated base value of $18.5 million on a firm-fixed-price basis.
* $11.5 million is currently funded and obligated across three work packages and a partial allotment to a fourth.
* The period of performance for the task order is August 28, 2026, to August 27, 2030.
* One base work package, valued at $7.1 million, funds industrial-scale continuous furnaces for HSPT processing and dehydrogenation for titanium track pins and bolts.
* A separate $3.4 million package funds a smaller continuous HSPT furnace to evaluate unit costs.
* A third package, valued at $1 million, funds centerless grinding and thread-rolling equipment at the Virginia facility.
* The fourth base package, valued at $7.1 million, covers industrial-scale batch HSPT and dehydrogenation furnaces but has only $100,000 allotted.
* $6.9 million in unexercised and unfunded options could raise the maximum potential value to $25.4 million.
* Task Orders 1 and 2 have an aggregate stated value of approximately $19.8 million.
* IperionX separately received $59.8 million in reimbursable funding under Defense Production Act Title III and Industrial Base Analysis and Sustainment programs.
* The Army transferred approximately 290 metric tons of titanium alloy scrap to IperionX.
Executive Summary
The US Army awarded a second task order to IperionX under its existing $99 million SBIR Phase III contract, allocating $11.5 million for immediate funding to expand titanium powder-to-part manufacturing capacity at the Virginia facility. This action aims to foster domestic titanium manufacturing by reducing reliance on foreign feedstocks and external finishing suppliers. The task order, designated W911QX26FA097, has a stated base value of $18.5 million, with $11.5 million currently funded across three work packages and partial allotment to a fourth. Potential options exist for an additional $6.9 million, which could increase the maximum potential value to $25.4 million. The performance period is set from August 28, 2026, to August 27, 2030.
The funded work packages focus on several areas: industrial-scale continuous furnaces for HSPT processing and dehydrogenation to produce titanium track pins and bolts, a smaller continuous furnace for demonstrating repeatable processing of bolts, and equipment for in-house centerless grinding and thread-rolling. The largest package funds industrial-scale furnaces intended for Army ground-combat applications, with inspection planned at the Detroit Arsenal. IperionX's platform involves HAMR for powder production and HSPT for component consolidation; the current funding targets transitioning HSPT to continuous operation. Additional options relate to developing aerospace-grade components via binder-jet printing and exploring the recycling of C103 alloy scrap, including refractory metal processing. Furthermore, IperionX has separately received $59.8 million in reimbursable funding and has been provided approximately 290 metric tons of titanium alloy scrap by the Army.
Full Take
The narrative demonstrates a strategic effort by the government, channeled through specific task orders, to establish a domestic supply chain for advanced materials, specifically focusing on titanium and refractory metals derived from recycled or domestically processed feedstocks like scrap. The structure reveals an attempt to move beyond demonstration toward production scale, evidenced by funding focused on continuous processing (HSPT) and in-house finishing equipment.
The tension lies between the committed funding for immediate production goals—like developing tools for ground-combat applications—and the uncertainty surrounding future expansion through unexercised options related to more advanced materials like C103 alloys. The parallel development streams, such as IperionX's proprietary HAMR/HSPT platform and the separate government programs with 6K Additive concerning scrap reprocessing, indicate a multi-pronged systemic push for material independence that exists somewhat independently of the specific contract structure.
The key implication is how success in niche areas, like qualifying C103 powder, will translate into broader industrial adoption. The demonstration work regarding fastener finishing addresses a clear logistical bottleneck, suggesting that process control and material management are as critical as the core material science itself for scaling domestic capability. The pattern of funding deployment—moving from batch to continuous processing and from component manufacturing to feedstock recycling—suggests an evolving regulatory and industrial reality where capability is being built incrementally under contract constraints, rather than through singular large-scale mandates. The question remains whether the flexibility provided by the option structure truly supports agile innovation or merely slows down the realization of potential market shifts related to refractory metal applications.