IperionX Ltd (ASX:IPX) has issued a detailed response to a short-seller report released by Spruce Point Capital Management, pointing to multiple layers of US government validation and funding for its titanium technologies and US supply chain strategy.
The company said the response was prepared in line with ASIC guidance on short-selling campaigns and focused on material, verifiable facts relevant to investors and its continuous disclosure obligations. It also noted that Spruce Point did not contact IperionX management before publication and has never visited its Virginia titanium manufacturing operations.
Government programs and technology validation
IperionX underlined that its patented titanium technologies have been evaluated and supported through several US government programs, including ARPA-E, Defense Production Act (DPA) Title III, the Industrial Base Analysis & Sustainment (IBAS) program and, most recently, a US Army-led Phase III Small Business Innovation Research (SBIR) contract for “procurement-ready” titanium products.
The company said advancing through successive competitive awards and ongoing technical due diligence by Department of War subject-matter experts demonstrates the increasing readiness and strategic relevance of its technology platform for the US titanium supply chain.
Recent funding milestones include:
- A US$12.7 million DPA Title III award in 2023 to commission and scale its Virginia facility to 125 tonnes per annum (tpa) of titanium.
- A 2025 IBAS award of US$47.1 million, including US$5 million to fund a Definitive Feasibility Study (DFS) for the Titan Critical Minerals Project and further tranches of US$12.5 million and US$25 million obligated later in 2025.
- A US Army SBIR Phase III IDIQ contract of up to US$99 million, under which the first task order has already been issued.
Virginia ramp-up and Titan project
The company said commissioning of its Virginia Titanium Manufacturing Campus has been completed, with titanium products progressing through customer qualification. Process improvements have lifted projected nameplate capacity from 125 tpa to 200 tpa, with an IBAS-funded expansion targeting around 1,400 tpa by mid-2027 at an estimated cost of about US$75 million.
The Titan Critical Minerals Project in Tennessee continues to advance towards “shovel-ready” status, with a DFS expected by mid-2026 and all major development permits in place. The project is described as a potential near-term strategic source of rare earths, titanium and zircon for the US. Progression to development will depend on completion of the DFS and securing project finance.
Sales, pipeline and feedstock strategy
On the commercial side, IperionX pointed to existing contracts and programs including:
- A disclosed Ford program with an expected value of about US$11 million over 45 months.
- Production and sale of titanium components for Panerai watch collections.
- Supply of titanium fasteners to the US Army Ground Vehicle Systems Center for testing and installation on an operational platform.
IperionX is also progressing more than 200 NDA-backed opportunities, over 90 active customer programs and 22 engagements in final prototyping or commercial negotiation, many of which are subject to ITAR-related confidentiality.
It reiterated its strategy to focus on underutilised titanium scrap feedstocks — such as powders, processed turnings and grindings — that are often downcycled, saying it has already procured more than 70 tonnes of titanium scrap for inventory at its Virginia campus to support 2026 production.
Cash, funding capacity and disclosure
As at September 30, 2025, IperionX reported cash and equivalents of US$79.2 million. It also referenced around US$43 million of additional funding already obligated under Department of War programs and more than US$97 million of additional capacity under its SBIR Phase III contract vehicle for eligible US government procurement task orders.
The company confirmed it remains in compliance with its continuous disclosure obligations, including with respect to the status of contracts, agreements and memoranda of understanding, and said it will continue to update the market as required under ASIC, ASX and SEC rules.