IperionX pedals into growing bicycle market under deal with Canyon

IperionX’s low carbon titanium recycling technology will be used to produce bicycle components for Germany’s Canyon Bicycles under a partnership to develop a more sustainable supply chain.

The ability to produce bicycle components using the company’s low-carbon, recycled titanium metal powders via additive manufacturing methods meshes perfectly with Canyon’s dual objective of using innovative materials in the production process while meeting its environmental goals.

Both companies have agreed on an initial project to prototype Canyon bicycle parts, including for bicycle frames, using IperionX’s (ASX:IPX) 100% recycled titanium until 30 June 2025.

On successful completion of this initial prototyping, the two companies will then negotiate an agreement for larger scale production.

“Our partnership with Canyon highlights the importance of fully circular, sustainable materials to customers with leading environmental goals,” managing director Anastasios Arima said.

“We are very pleased to be applying the patented technologies to create 100% recycled titanium parts for a leading company in a very large addressable market, and we look forward to progressing the partnership towards the extended use of titanium in bicycle production.”

Canyon chief operating officer Alison Jones added that connecting IperionX to Canyon’s product development and ESG teams allowed the company to identify bicycle components that can be produced using their low-cost, low-carbon, fully recycled titanium powders.

“This is a real breakthrough technology for us and we look forward to deploying this innovative technology in the production of more sustainable titanium for use in Canyon bicycles,” she added.

Tapping into a growing global market

Titanium’s strength, corrosion resistance and light weight – about half that of steel – makes it a desirable and premium frame material for bicycles, especially for an award winning bicycle manufacturer with a reputation for innovation and implementing leading technologies such as Canyon.

However, its use is limited by its high cost compared to materials such as carbon frames, as well as the high-carbon footprint of the current titanium supply chain, which is based on the energy-intensive Kroll process.

The ability to both reduce cost and lower the carbon intensity by recycling titanium scrap opens up the growing global bicycle industry, which saw sales of about US$70bn in 2021 and is projected to grow up to US$85bn in 2025.

Canyon’s target – the high-end sector of this market – is still worth US$18bn though its growth is expected to leave the broader industry in the dust, reaching a value of US$30bn in 2030.

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.