All permits have now been secured to build and operate the planned titanium metal production facility in Virginia, USA with first titanium production targeted for Q1, 2024.
By 2025, IperionX (ASX:IPX) hopes to scale the Titanium Demonstration Facility (TCF-1) capacity to 1,125tpa of titanium metal within the existing 50,000 square foot shell building in Halifax County, Virginia.
These permits, which include the Industrial Wastewater Discharge permit and the New Source Review (air pollution) permit issued by the Virginia Department of Environmental Quality, cover that planned expansion and will see TCF-1 become the world’s largest 100% recyclable titanium powder plant.
With key equipment ordered and procurement underway, IPX says construction works will take place in Q3, and will be funded by an investment of up to US$4m by the Halifax County Development Authority.
Positioned to re-shore titanium metal production to USA
“This is an important milestone and is a credit to the successful work of the IperionX development team, Halifax County, Virginia and regulatory agencies,” IPX CEO Taso Arima says.
“IperionX is uniquely positioned to re-shore titanium metal production to the USA., reducing the acute reliance on titanium imports from foreign nations,” he explains.
“This also lowers the significant environmental impacts from producing titanium metal using the existing ‘Kroll Process’ – which is energy intensive, high cost and generates excessive greenhouse gas emissions.”
IPX’s goal of becoming a leading producer of low-cost, low-carbon recycled titanium metal powder was realised earlier this year when strong forecast economics were released in a Techno-Economic Assessment in April.
With low capital intensity, the TCF-1 operation is forecast to deliver ~US$100m of EBITDA in 2026, based on key operating assumptions.
What’s next?
IPX will now carry out its plans to build the largest recycled titanium metal powder production facility globally, and the only titanium plant that uses 100% titanium scrap metal as feedstock.
The titanium production facility in Virginia is designed to have zero Scope 1 & 2 emissions and is expected to produce UL validated 100% recycled titanium metal powder with the lowest carbon intensity on the market.
Both the design of TDF and TCF-1 are based on scaled-up versions of the current Industrial Pilot Facility, in Salt Lake City, which has been successfully operated by IperionX since January 2022.
IperionX has upgraded this facility, and improved operational processes, to achieve a significant increase in the titanium production capacity with higher efficiency and consistency.
And don’t forget
IPX will be hosting a webinar on Wednesday 2 August at 10am WST for shareholders and investors where Arima will provide a company date.
To register, follow this link.
This article was developed in collaboration with IperionX, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions
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