Highlights

• IperionX produced 8.7 tonnes of titanium powder in the September quarter, up from 1.4 tonnes in the June quarter.

• Task Order 2 under its SBIR Phase III contract has a base value of US$18.5 million, with US$11.5 million initially funded.

• Cash rose to US$63.0 million at 30 September 2026, mainly supported by a US public offering in July.

• The company has not yet reported meaningful commercial revenue, and the Titan project has not yet been developed.

What does the latest Quarterly Report from IperionX (ASX:IPX) say about its plan to build a US titanium Supply chain? In short, the company is moving from pilot-scale work towards early production. In the three months to 30 September 2026 it produced more titanium powder, won further US defence funding and strengthened its balance sheet. However, it did not report meaningful commercial revenue, and its larger expansion plans still need to be delivered.

The report was released on 29 October 2026. It gives the clearest picture so far of how far IperionX has come, and how much remains ahead.

What IperionX does

IperionX is a US-focused titanium company listed on the ASX and Nasdaq. Its main Business is turning titanium scrap and other feedstock into titanium metal powder and finished parts. It uses its patented Hydrogen Assisted Metallothermic Reduction (HAMR) technology for this at facilities in Virginia.

The company argues that its process can make titanium with less energy and at lower cost than conventional methods. It is currently selling and sampling products to defence and industrial customers, including fasteners and other components.

It also owns the Titan critical minerals project near Camden, Tennessee. Titan is a heavy mineral sands deposit. According to its June 2026 definitive feasibility study, it is planned to produce:

- the titanium minerals ilmenite and rutile - zircon concentrate - a heavy rare earth concentrate enriched in dysprosium, terbium and yttrium

Titan has not yet been developed.

Production gains in the quarter

IperionX produced 8.7 tonnes of titanium powder using its HAMR process in the September quarter, up from 1.4 tonnes in the June quarter. It ended the period with 19 tonnes of finished powder in inventory and 207 tonnes of titanium scrap feedstock.

The company said it had validated HAMR furnace capacity above its target annualised run-rate of 200 tonnes per year. It also produced 1,500 fasteners.

Its newer continuous process, branded GenX, processed more than 500 kilograms of titanium powder across four runs. The company reported large reductions in power, magnesium and hydrogen use per kilogram compared with batch production. These are company-reported test results rather than sustained commercial operating data.

Most fastener production steps are now carried out in-house in Virginia. The company has commissioned one of two additional sintering furnaces, with the second due for commissioning in the December quarter.

US defence contracts and funding

US Government support is central to IperionX's strategy. The company described its counterparty as the US Department of War, the name the US defence department now uses.

Task Order 2 under its Small Business Innovation Research (SBIR) Phase III contract has a base value of US$18.5 million, of which US$11.5 million is initially funded. With options, it could reach US$25.4 million. Task Orders 1 and 2 total about US$19.8 million, leaving about US$79.2 million available under the US$99 million contract ceiling. That headroom is not guaranteed work.

Separately, IperionX is expanding towards 1,400 tonnes per year of titanium capacity. This is backed by:

- a fully obligated US$47.1 million award from the Industrial Base Analysis and Sustainment programme - a US$12.7 million Defense Production Act Title III award - about 290 tonnes of US Government titanium scrap supplied at no cost

Customer progress

IperionX reported progress with several defence-related customers.

For the US Navy, components made with Carver Pump are complete and undergoing final customer testing ahead of possible commercial-scale orders.

For the US Army, it is supplying prototype titanium track pins with American Rheinmetall Vehicles. It has also received a follow-on purchase order for titanium fasteners used on the Joint Light Tactical Vehicle.

These are early-stage orders. The company has not disclosed volumes or values that would indicate a meaningful Revenue base yet.

Balance sheet and funding

IperionX held US$63.0 million in cash at 30 September 2026, up from US$35.2 million at 30 June 2026. It also reported US$33.7 million in remaining obligated, reimbursable US Government funding, giving total available Liquidity of about US$96.7 million on its own measure.

Net operating cash outflow for the quarter was US$12.6 million. The increase in cash came mainly from a US public offering in July 2026, which raised about US$50.0 million before costs. Directors also bought about US$1.9 million of shares on market in July.

Titan and the Atlas acquisition

The Titan feasibility study estimated an after-tax net present value of US$813 million, using an 8 per cent discount rate, over a 14-year initial mine life. It estimated total development Capital of US$381.3 million across two phases. The study notes that project financing has not yet been secured.

In July 2026 IperionX completed the US$3 million Acquisition of the nearby Atlas property. This adds surface stockpiles and existing infrastructure. An integrated Atlas–Titan economic assessment is under way.

Sector conditions

US policy has increasingly focused on reducing reliance on imported titanium metal and critical minerals. This policy backdrop has supported IperionX's access to government funding.

However, the company is small compared with established aerospace and defence titanium producers. Its technology still has to show it can operate consistently at commercial scale and at competitive cost.

Risks and what to watch

The main risks are execution and funding. Scaling HAMR and GenX from tonnes to hundreds of tonnes per year may involve technical setbacks. The company remains loss-making and may need further capital, which could dilute shareholders.

IperionX is also heavily dependent on US Government programmes, whose timing and budgets can change. Commercial orders depend on customer testing and qualification.

The company has also proposed moving its parent entity to Texas, with its common stock listed directly on Nasdaq. This requires shareholder, court and regulatory approvals. It could affect how the stock is listed and held in Australia, including its index status.

Developments to monitor include:

- commissioning of the second sintering furnace - any follow-on US Army or Navy orders - progress on bringing GenX capacity online - the Atlas–Titan assessment - details of the redomiciliation timetable