Amaero International (ASX:3DA) has signed a major three-year supply agreement with The Perryman Company which will see the latter become Amaero’s main supplier of U.S. melt and forged titanium alloy bar feedstock.

That titanium alloy is used for the atomisation of premium spherical powder.

The agreement has a baseline price for the 2025 calendar year, and will then increase each subsequent year of the contract according to an agreed-upon fixed percentage, in addition to a variable raw material surcharge based on a reference index market price for Ti64.

Non-binding estimates of minimum annual demand have been provided by Amaero, with updates to be provided to The Perryman Company on a quarterly basis.

Amaero chairman and CEO Hank J Holland said the agreement was a significant step for the company.

“Amaero aims to be the premium C103, refractory and titanium spherical powder producer with a vertically-integrated US domestic supply chain,” he said.

“Securing a long-term US-sourced supply agreement for titanium bar from a global leader in titanium melt and forging is an important milestone for Amaero and an important step towards securing a US domestic supply chain for additive/advanced manufacturing of titanium end-parts.”

Investors appeared impressed with this news, and at 11:27 AEDT, Amaero shares were trading at 35 cents – a rise of 6.06% since the market opened.

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