Amaero (ASX: 3DA) Secures A$6.5 Million U.S. Defence Contract to Advance Next-Generation Aerospace Materials

Australia-listed advanced materials company Amaero (ASX: 3DA) has secured a A$6.5 million contract from the United States Department of War, marking an important step in the company’s ambition to become a strategic supplier of high-performance materials for the U.S. defence and aerospace industries.

While the contract itself is relatively modest in size, its significance lies in what it is designed to achieve.

The 13-month program will see Amaero develop alternative refractory alloy powders capable of replacing traditional high-temperature materials used in rocket propulsion systems, hypersonic vehicles and space technologies. The project is scheduled to run through August 2027, with approximately 40% of contract revenue expected to be recognised during the second half of calendar 2026 and around 50% during the first half of 2027 through milestone-based payments.

The initiative addresses a growing concern for defence agencies around the world: securing reliable domestic supplies of critical materials used in advanced weapons systems and aerospace platforms.

Amaero will work alongside the Department of War, U.S. national laboratories, defence contractors and strategic suppliers to evaluate two alternative refractory alloys selected for the program. The company will produce specialised metal powders using its gas atomisation technology, manufacture test components through its proprietary PM-HIP process, and support additive manufacturing and performance testing to generate qualification data.

Unlike conventional engineering metals, refractory alloys are designed to withstand extreme temperatures while maintaining strength. They are commonly used in rocket nozzles, propulsion systems, thermal protection components and hypersonic technologies where traditional materials would fail.

One of the key drivers behind the project is the rising cost and supply risk associated with niobium C103, a long-established aerospace alloy. According to Amaero, the price of hafnium, one of its critical ingredients, has increased by more than 700% over the past three years and now trades at around US$12,500 per kilogram. Developing alternative materials that reduce dependence on scarce inputs could lower costs while strengthening domestic manufacturing capability.

Today’s update also reflects a broader shift in U.S. industrial policy.

Governments are increasingly investing in domestic production of critical minerals, advanced manufacturing and defence technologies as geopolitical tensions expose vulnerabilities in global supply chains. Companies capable of supplying specialised materials from within the United States have become strategically important to long-term defence planning.

Amaero is well positioned within that trend. The company operates its corporate headquarters and advanced manufacturing facilities in Tennessee and recently commissioned what it describes as the only EIGA Premium gas atomisation facility in the United States, designed specifically for producing high-value refractory alloy powders.

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Chairman and Chief Executive Officer Hank J. Holland said the contract builds on two years of collaboration with U.S. defence agencies.

“Over the past two years, Amaero has collaborated closely with the U.S. government and the Department of War (DoW). In response to the DoW’s supply chain challenge, Amaero commissioned the only EIGA Premium in the U.S., the most advanced gas atomization technology for refractory alloy powders.

“As high-temperature refractory alloy powders are essential to thermal protection systems and propulsion systems in hypersonic and space platforms, it’s essential that we develop the next generation refractory alloy powders. The A$6.5 million award from DoW positions Amaero to down select the most promising alternative refractory alloys and to establish the necessary print and test data to advance maturity and adoption.

“We appreciate being selected as a trusted and strategic partner with unique technical and production capabilities and we look forward to collaborating with DoW to advance the next generation refractory alloy powders.”

The contract provides Amaero with clearer near-term revenue visibility, but its longer-term significance will depend on whether the development program progresses into commercial production. Successful testing and qualification could open opportunities to supply materials for defence, space and aerospace programs beyond the current agreement.

Shares in Amaero rose 9.62% to A$0.285 following the announcement, giving the company a market capitalisation of approximately A$272 million.

Looking ahead, investors are likely to focus on key milestones including alloy selection, testing results, engagement with major defence contractors and any follow-on production contracts. While commercial adoption is not guaranteed, the latest award positions Amaero at the intersection of two rapidly expanding industries: advanced manufacturing and defence supply-chain security.

Sources: Amaero ASX Announcement (22 July 2026); U.S. Department of War contract announcement; company presentation and market update.