IperionX's Titanium Recycling Push Gets Major US Government Backing

A patented technology to produce lower-cost titanium from scrap is scaling toward a 10,000 tonne 2030 target, backed by substantial US government support, even as ETF-driven trading causes sharp price swings.

31 Aug 2026 · 3 min read

IperionX, aiming to become a leading American titanium metals company using patented recycling technology to produce lower-cost titanium alloys from scrap, delivered strong capacity expansion progress and substantial US government backing before ETF-driven volatility and a broader critical minerals sector sell-off drove sharp swings, culminating in a US$50 million capital raise that left the balance sheet with around US$85 million in cash.

A capacity expansion roadmap with genuine market scale

Pengana Capital Group said IperionX, its largest holding, rose 14 percent after announcing detailed capacity expansion plans, initially to 1,400 tonnes by 2027 and 10,000 tonnes by 2030, noting the US currently consumes about 100,000 tonnes of titanium a year, suggesting substantial room for growth, with the company expecting to generate approximately US$100 million of EBITDA at the low end of its forecast range once at 1,400 tonnes. NorthStar Impact Funds said IperionX aims to increase production capacity to 1,400 tonnes a year by 2027, delivering the largest-scale, lowest unit cost production for fully circular titanium used in future-facing industries, having received a further $25 million in funding from the US government to build out its supply.

The Fund's largest holding, IperionX, rose 14% after announcing detailed capacity expansion plans, initially to 1,400 tonnes in 2027 and 10,000 tonnes by 2030. The US currently consumes about 100,000 tonnes of titanium per year, suggesting substantial room for growth. At 1,400 tonnes, the company expects to generate approximately US$100 million of EBITDA at the low end of its forecast range.

— Pengana Capital Group, Monthly Report, September 2025

US government backing accelerates ETF-driven momentum

Ellerston Capital said IperionX aims to become a leading American titanium metals company using patented technologies to produce higher performance alloys from titanium scrap at a lower cost, currently in a development and expansion phase going from 125 tonnes per annum to 200, aspiring to a commercial rate of 1,400 tonnes per annum by mid-2027. Pengana Capital Group said IperionX rebounded strongly, rising 31 percent, driven by two factors: first, being added to the REMX ETF, which experienced strong inflows in January, resulting in substantial ETF-driven buying, and second, continued significant support from the US government, including additional grant funding and transfers of scrap titanium feedstock at no cost.

IperionX rebounded strongly, rising 31% during the month. The move was driven by two key factors. First, IperionX was added to the REMX ETF, which experienced strong inflows in January, resulting in substantial ETF-driven buying. Second, the company continued to receive significant support from the US Government, including additional grant funding and transfers of scrap titanium feedstock at no cost.

— Pengana Capital Group, Monthly Report, January 2026

Sharp volatility tied to sector sentiment rather than fundamentals

Pengana Capital Group said IperionX fell 48 percent during March, though it rebounded 23 percent in April, standing to gain from US efforts to reshore titanium supply for defence, aerospace and clean-energy applications, reflected in substantial Department of Defense funding and scrap feedstock support. Ellerston Capital noted IperionX also owns the Titan Mineral Sands project in Tennessee, which could be developed to support a fully integrated titanium metals production facility.

A capital raise strengthens the balance sheet amid sector weakness

Pengana Capital Group said its critical-minerals holding IperionX had a weak month, declining 31 percent amid a broad sector sell-off, with the VanEck Rare Earth and Strategic Metals ETF, which holds IperionX, falling 24 percent. IperionX raised US$50 million at A$3.20 a share, leaving the company with a very strong balance sheet, with approximately US$85 million in cash.

IperionX raised US$50 million at A$3.20 per share. The company now has a very strong balance sheet, with approximately US$85 million in cash.

— Pengana Capital Group, Monthly Report, July 2026

What fund managers say they are watching next is continued progress toward the 1,400 tonne 2027 capacity target and eventual 10,000 tonne 2030 goal, further US government support including grant funding and scrap feedstock transfers, whether the strong US$85 million cash balance sheet funds the expansion without further dilution, and whether broader critical minerals ETF sentiment continues driving volatility disconnected from company-specific fundamentals.