IperionX Partners With United Stars For U.S. Sourced Titanium Manufacturing; Expected To Include The Sale And Purchase Of The Lesser Of 40% Of IperionX's Phase 1 Titanium Production Capacity, Or 80 Metric Tons Per Annum Of IperionX's Angular Titanium Powder And Consolidated Titanium Products, For A 10 Year Term.
IperionX Limited (NASDAQ:IPX, ASX: IPX))) has signed a framework agreement with United Stars Holdings, Inc. (United Stars) with terms that will underpin a definitive commercial supply agreement for IperionX's titanium products. United Stars expects to purchase up to 80 metric tons annually of IperionX's high-performance, low cost and sustainable titanium products over a 10-year supply term.
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United Stars is a Wisconsin based, multi-generational, family-owned and operated company owned by Roger West, a successful entrepreneur and philanthropist whose father, Clarence West, founded the Company in 1936. United Stars' companies are leading American suppliers of industrial components including, stainless steel tubing, precision gears, shafts, and complex assemblies, as well as tooling and components for defense, aerospace and commercial applications. Additionally, United Stars has exposure to fine finish precision grinding and the manufacturing of very large gears through Line Craft Inc. and Triple A Inc.
United Stars has over 80 years of manufacturing history and serves leading OEMs and Tier 1 suppliers across the aerospace, automotive, defense, oil & gas, construction, mining, locomotive pharmaceutical and agriculture sectors. Major customers include Boeing, BAE Systems, Lockheed Martin, General Electric, Lucid Motors, General Motors, Toyota, Caterpillar, BorgWarner, Oshkosh and John Deere. An expanded list of United Stars customers can be found in the "About United Stars" section at the end of this announcement.
United Stars and IperionX's partnership will focus on the defense and advanced technology sectors with products for vehicle drivetrains, robotic motors and wind turbines, that require lightweight, strong, compact and corrosion resistant performance.
IperionX is building an ‘end-to-end' American titanium supply chain solution, that spans from the production of U.S. sourced titanium minerals, advanced technology to refine these minerals to +99% TiO2, and the capability to utilize the largest range of recycled scrap titanium to produce low-cost and high-performance titanium alloys.
IperionX's leading patented technology portfolio enables the production of low cost and high-performance near net shape products, semi-finished titanium products (such as ingot, bar, plate, wire), spherical titanium powder for additive manufacturing and metal injection molding, and angular titanium powder for a wide range of advanced manufacturing applications. IperionX's innovative technologies allow for world class leading sustainability and superior process energy efficiencies over the traditional Kroll titanium production process.
Roger West, United Stars Chairman and CEO said:
"Titanium is a superior metal for a majority of use cases and ever since the U.S. became 100% import reliant on titanium metal sponge from foreign sources in 2020 I have been searching for a U.S. company with the ability to economically and securely re-shore an integrated supply chain for titanium. This relationship will prove incredibly valuable for my portfolio of companies and I'm also proud to play a role in supporting the interests of U.S. national security. Taso Arima's vision to re-shore the U.S. titanium supply chain, combined with the team that he has assembled, makes IperionX an organization that I am pleased to partner with."
Anastasios (Taso) Arima, IperionX CEO said:
"IperionX is pleased to partner with Roger West and his team at United Stars to manufacture advanced titanium products for the defense and commercial sectors. United Stars, a leading American supplier of precision gears, shafts, and complex assemblies, is a strong commercial partner to manufacture advanced titanium components for their global customers across the automotive, defense, oil & gas, construction, mining, locomotive and agriculture sectors. United Stars are aligned with our mission to re-build an integrated ‘end-to-end' U.S. titanium supply chain and strengthen America's manufacturing independence."
Key terms of the framework agreement
IperionX and United Stars have signed a non-exclusive framework agreement to underpin the terms for a definitive titanium supply agreement, which the parties have agreed to work together in good faith to prepare and negotiate. The definitive titanium supply agreement is expected to include the sale and purchase of the lesser of 40% of IperionX's Phase 1 titanium production capacity, or eighty (80) metric tons per annum of IperionX's angular titanium powder and consolidated titanium products, for a ten (10) year term. Final pricing and payment terms will be agreed under the definitive supply agreement. The Framework Agreement is effective from April 12, 2024 until the execution of the definitive titanium supply agreement, and can be cancelled by IperionX or United Stars with 60 days written notice.