IperionX (IPX) said Tuesday it has won an up to $47.1 million contract from the US Department of Defense to develop a US mineral-to-metal titanium supply chain.

The partnership represents $70.7 million in combined investment between the company and the department to fund a two-phase development program, with the objective of strengthening US titanium production capabilities, IperionX said.

The company said that as part of the initial phase of the two-year program, the agency has obligated $5 million and IperionX will contribute $1 million to expedite a project in Tennessee that aims to secure a new domestic source of titanium, rare earths and zircon critical minerals.

The department is expected to obligate the remaining $42.1 million over the agreement's duration, with the funds facilitating vertical integration and increased titanium production capacity at the company's Virginia titanium manufacturing campus, IperionX said.

Shares of IperionX rose 16% in recent trading.

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