Supply Chain Risks Loom if Amaero Misses Certification or Delivery Targets

Strategic Alliance in Advanced Manufacturing

In a move that underscores the growing importance of securing critical materials for advanced manufacturing, Titomic Limited (ASX – TTT) and Amaero Ltd (ASX – 3DA) have formalized a five-year Strategic Supply and Development Agreement. This partnership centers on the supply of spherical refractory and titanium alloy powders tailored specifically for Titomic’s proprietary cold spray additive manufacturing technology, a process gaining traction in defense, aerospace, and space applications.

The agreement positions Amaero as the exclusive supplier of these specialized powders, ensuring Titomic and its customers benefit from consistent, high-quality materials essential for unlocking the full potential of cold spray manufacturing. This exclusivity, however, is carefully balanced with provisions allowing Titomic to source alternatives if Amaero fails to meet certification or delivery milestones, reflecting a pragmatic approach to supply chain risk management.

Building Resilience in U.S. Supply Chains

Both companies emphasize the strategic significance of this partnership in reinforcing a resilient and scalable domestic supply chain within the United States. With defense and aerospace sectors increasingly focused on supply security, the collaboration aligns with broader industry trends prioritizing local sourcing of mission-critical materials. Amaero’s expertise in gas atomization and powder metallurgy complements Titomic’s cold spray technology, creating a synergistic relationship that could accelerate adoption of advanced manufacturing solutions.

Importantly, the agreement includes joint development initiatives, with both parties collaborating on new powder formulations and sharing testing data and intellectual property. This cooperative framework not only fosters innovation but also ensures that powders qualified during development will be the same formulations available for production, providing continuity and reliability for end users.

Commercial and Operational Flexibility

Pricing arrangements under the agreement are linked to the landed cost of feedstock materials, subject to a set markup and reviewed biannually. This mechanism allows for adjustments in response to market conditions, while exclusivity clauses contain safeguards enabling Titomic to seek alternative suppliers if necessary. Notably, the exclusivity applies solely to spherical refractory and titanium alloy powders, leaving other powder types unrestricted, which preserves some operational flexibility for Titomic.

Executives from both companies expressed optimism about the partnership’s potential. Titomic’s CEO, Jim Simpson, highlighted the confidence the deal brings in scaling production with domestic capacity, while Amaero’s Chairman and CEO, Hank J. Holland, underscored the shared vision of delivering resilient and competitive material solutions to critical markets.

As additive manufacturing continues to evolve, this alliance exemplifies how strategic supply agreements can underpin technological advancement and supply chain security simultaneously.