Shares of titanium metal and critical materials company IperionX Limited ( IPX ) are trading higher on Tuesday.

The company has been awarded a contract by the U.S. Department of Defense (DoD) valued at as much as $47.1 million, designed to improve the U.S. Defense Industrial Base by fostering the creation of a cost-effective and fully integrated domestic titanium supply chain.

The deal represents a total investment of $70.7 million from both IperionX ( IPX ) and the DoD, with the goal of bolstering U.S. titanium production to support national security and economic resilience.

The two-phase initiative will span the next two years. The initial phase involves a $5 million commitment from the DoD through the Industrial Base Analysis and Sustainment (IBAS) program, with IperionX ( IPX ) adding $1 million.

“For too long, American industry has been reliant on foreign-controlled supply chains for this critical high-strength metal. IperionX’s proprietary technologies, combined with the Titan Project, offer a pathway for a resilient end-to-end U.S. titanium supply chain,” said CEO Anastasios (Taso) Arima.

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The funding will help advance the Titan Critical Minerals Project in Tennessee, aiming to reach ‘shovel-ready’ status and establish a new domestic supply of titanium along with critical minerals such as rare earths and zircon.

The project’s second phase will prioritize increasing titanium production capacity and achieving vertical integration at IperionX’s Titanium Manufacturing Campus in Virginia.

Titanium is crucial for U.S. military sectors such as aerospace, defense, automotive, and consumer industries, but reliance on overseas supply chains and high production costs have restricted its availability.

IperionX’s Hydrogen-Assisted Metallothermic Reduction (HAMR) and Hydrogen Sintering and Phase Transformation (HSPT) technologies offer a viable solution to reduce production costs while maintaining performance.

The Department of Defense’s initiative seeks to lessen reliance on foreign titanium imports. The funding aligns with President Trump Administration’s push to strengthen U.S. manufacturing and secure essential minerals for national defense.

Price Action: IPX shares are trading higher by 15.4% at $30.00 at the last check Tuesday.

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