4th Atomizer Ordered and Argon Recycling Investment Reduced ~60% Driving Earlier Cost Savings and Strengthening Unit Economics
Amaero Ltd (ASX:3DA, OTC:AMROF) today announced two major steps forward in its U.S. manufacturing expansion following the execution of binding purchase contracts for its Argon recycling plant and for its 4th advanced EIGA Premium atomizer.
These investments significantly advance Amaero’s capacity, cost-competitiveness and commercial readiness as a leading domestic U.S. producer of titanium and refractory alloy powders.
A$9 Million Capital Saving on Argon System
In conjunction with the recent A$50 million Placement, the Company estimated a capital budget of approximately A$15 million for the Argon recycling plant and a period of approximately 2 years to design, build and commission the recycling system.
After value engineering the design and scope of capital equipment, as well as the services agreement, Amaero has executed a contract reflecting total equipment and commissioning costs of approximately A$4.4 million. Building improvements and modifications are expected to cost approximately A$1.5 million, resulting in a total revised cost of approximately A$6 million — an approximate A$9 million saving or 60% reduction from initial estimates.
Based on the deliverables and milestones in the contract, the Company expects the system will be installed by end of calendar year 2026 and commissioned in the 1st quarter of calendar year 2027. The updated schedule accelerates operating expense savings by approximately 1 year.
Based on planned capital expenditures and projected pro forma operations, Amaero expects to reduce Argon consumption cost per kilogram of powder by approximately 80% and to achieve a payback period of 2.0 to 2.5 years. The reduction in Argon expense will further improve Amaero’s unit cost economics and enhance its cost advantage relative to other titanium alloy powder producers and alternative atomization technologies.
4th EIGA Premium Atomizer Ordered to Support Capacity Expansion
As guided during the recent A$50 million Placement, Amaero has moved forward with the order of its 4th EIGA Premium atomizer.
According to the Air Force Research Laboratory (AFRL), “non-contact EIGA is the industry standard for reactive and refractory materials.” Given the high melting temperature and contamination risks associated with crucibles or nozzles, EIGA is regarded as a leading technology for producing high-performance powders.
Amaero has installed the only custom-designed, new-build EIGA Premium atomizers in the United States, with two atomizers currently commissioned, a 3rd scheduled for commissioning in June 2026, and the newly ordered 4th EIGA Premium scheduled for commissioning in June 2027.
The EIGA Premium platform provides:
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a significantly higher yield of the most valuable LPBF PSD powders,
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approximately 50% reduction in Argon consumption,
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and a proven contamination-free melt process.
Other atomization technologies may claim higher yield, though this is not a comparative claim, as Amaero references yield as a percentage of feedstock bar, while others reference yield as a percentage of “feedstock that is comprised of like PSD angular powder.”
With electricity representing the next largest variable COGS component, Amaero’s 10-year subsidized contract at US$0.058/kWh — approximately 70% below the U.S. national average — provides further structural cost advantage.
A$72 Million Capital Investment Program On Track
Amaero previously guided that it would invest A$72 million in plant and equipment over the three-year period ending 30 June 2026. The program remains on budget and on schedule, with approximately A$57 million invested to date.
Over the past 2.5 years, Amaero has:
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expanded and upgraded its 100,000 sq. ft. U.S. manufacturing facility,
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commissioned powder production and PM-HIP manufacturing equipment, and
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begun transitioning to production scaling in support of commercial programs.
EXIM Equipment Financing Drawdowns Progressing
Amaero reiterates prior guidance that EXIM Bank has committed to provide a US$22.82 million equipment financing loan, with full drawdown expected prior to the end of FY2026.
Expected loan draws through 31 December 2025 total approximately US$15.0 million (not including exposure fee), with the remaining balance expected to be drawn by 30 June 2026.
Strong Balance Sheet Position
While maintaining disciplined capital allocation, Amaero continues to invest decisively in manufacturing capability aligned with national-security and sovereign-supply-chain needs.
The Company expects to end the December quarter with approximately A$60 million in tangible assets (excluding cash) and approximately A$53 million in cash, both restricted and unrestricted.
These investments position Amaero as the largest-capacity and lowest-unit-cost domestic U.S. producer of titanium and refractory spherical powders, while also securing a first-mover advantage in PM-HIP manufacturing for large near-net-shape parts.
CEO Quote
Hank J. Holland, Amaero’s Chairman and CEO, commented:
“Amaero has demonstrated its commitment to making forward leaning investments and to aligning with strategic partners to address national security and sovereign manufacturing challenges. Additionally, Amaero has demonstrated a keen focus on a highly disciplined allocation of capital. As we moved decisively to re-locate the business to Tennessee in July 2023 and to execute on a 3-year capital investment and commercial engagement plan, Amaero has established a first mover advantage in both businesses – the titanium and refractory alloy spherical powder production business and the PM-HIP manufacturing business.
Our intensive engagement with strategic customers is evidenced by the December 3rd PM-HIP Roundtable at Amaero’s facility with approximately 40 maritime / submarine industrial base stakeholders including representatives from Bechtel Plant Machinery, Inc. (BPMI), Naval Nuclear Laboratory (NNL), Naval Reactors, NAVSEA, and other key stakeholders such as General Dynamics Electric Boat, Newport News Shipbuilding, Hanwha, BWX Technologies, Curtiss-Wright, Northrop Grumman and Leonardo DRS.
PM-HIP manufacturing of near-net-shape components is an immediate, mature and viable manufacturing technology to address critical production delays with castings and forgings. Amaero’s team has pioneering technical experience and proven program management competency. We believe that through the combined efforts of all participants, we can work together to expand the use of advanced technologies in the industrial base to meet the Navy’s increasing shipbuilding demands.”
About us:
About Amaero LTD
Amaero Ltd is a leading U.S.-based manufacturer of high-temperature powder metals and specialty powders, serving industries like Defense, Space, Aerospace, Oil & Gas, Industrial, Heavy Industry, Medical, and Energy. We leverage cutting-edge gas atomization and hot isostatic pressing (HIP) technologies to create high-performance components that reduce porosity and improve material integrity.
Contact details:
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Jane Morgan
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