IperionX (NASDAQ:IPX) is ramping commercial titanium production in Virginia while advancing its Tennessee mineral assets as part of a strategy to build a U.S. supply chain for titanium and other critical minerals, Founder and Chief Executive Officer Anastasios “Taso” Arima said in a company update.
Arima said the company is targeting annualized production of 200 metric tons of titanium metal products by the end of the year at its initial commercial operation. The company is also preparing for a Department of Defense-supported expansion under the IBAS program that it said would increase powder-production capacity by more than seven times in 2027.
Virginia production ramp continues
According to Arima, the company is using titanium scrap that might otherwise be discarded or downcycled into steel production. In the future, IperionX intends to source titanium minerals from its Titan project in Tennessee as it works toward a mineral-to-metal supply chain.
Production was reduced during April and May as the company updated controls on its HAMR furnace and tested different powder types, Arima said. He said production had returned by July to levels seen before that downtime, and that IperionX plans to increase the number of furnace cycles during the current quarter.
“We still expect to, and are planning to be at 200 metric tons per annum by the end of this year,” Arima said.
The company currently operates its HAMR process in batches, with two batches a week, and intends to increase throughput over time. Arima said IperionX is also expanding downstream processing capacity so it can convert powder into customer-requested finished products rather than only selling powder.
- The first of two new sintering furnaces was delivered and was being placed into operation during the month of the update.
- A second furnace was expected to arrive that month and enter operation during the quarter.
- A third, larger furnace was also expected to increase capacity.
IperionX said it is engaging with customers in defense, automotive, aerospace, consumer electronics and other markets. Arima said the company expects automotive parts to enter the market in 2027 and is seeking to convert current customer programs into commercial contracts.
Focus on titanium supply-chain security
Arima said the United States imports the majority of its titanium sponge requirements, including material sourced from Japan. He pointed to growing Chinese titanium sponge capacity and said IperionX’s objective is to reduce U.S. reliance on imported titanium sponge over time.
He said the company’s process could produce near-net-shape parts such as fastener blanks, avoiding several conventional manufacturing steps. IperionX estimates its approach could result in a 95% reduction in energy consumption for the supply chain described by the company and a 95% material yield, compared with lower yields in conventional processing.
The company has been working with the U.S. Army and U.S. Navy, according to Arima, including on products such as titanium fasteners and impellers. He also said IperionX wants to collaborate with established titanium mills by supplying preforms that can enter existing rolling and extrusion operations.
Arima said the company has secured scrap supply for the next several years and received 290 metric tons of scrap from the U.S. government during the year. He added that IperionX ended the quarter with what he described as a strong cash position following a financing completed after quarter-end, as well as unobligated funds for its expansion.
GenX and Tennessee mineral projects
IperionX is also starting up a semi-industrial-scale GenX furnace intended to operate the HAMR process continuously rather than in batches. Arima said the company expects to provide updates and report progress on GenX during the quarter, describing the technology as a potential route to lower operating and capital costs as production expands.
In Tennessee, the company completed a definitive feasibility study for its Titan mineral sands project. Arima said the study identified a first reserve and projected an after-tax net present value of more than $800 million and a post-tax internal rate of return of 40%, based on market conditions referenced in the study.
The Titan project contains titanium minerals as well as monazite and xenotime, zircon and associated zirconium and hafnium, according to Arima. He said those materials could support production of titanium feedstock, heavy rare earths, zirconium and hafnium.
IperionX also acquired the nearby Atlas historic silica sand mine, which includes stockpiled tailings containing heavy minerals targeted by the company. Arima said the asset could offer a lower-capital, faster route to initial critical-mineral production before the larger Titan development. The company is conducting drilling and exploration work at Atlas and expects updates over the next six to 12 months.
Separately, Arima said IperionX plans to re-domicile to the United States, describing the move as a natural progression for a U.S.-based business with a growing U.S. investor base.
About IperionX (NASDAQ:IPX)
IperionX (NASDAQ: IPX) is a mineral technology company focused on the production and commercialization of high‐purity titanium and zirconium products. The company’s core activities include the development of advanced mineral sands projects and the deployment of proprietary processing technologies aimed at supplying feedstocks to aerospace, defense, additive manufacturing and battery markets.
At the heart of IperionX’s operations is the Stony Creek Project in Virginia, where the company holds significant mineral sands rights.
