IperionX (ASX:IPX) said it was awarded a contract by the US Department of Defense for funding of up to $47.1 million to accelerate the development of a low-cost and fully integrated mineral-to-metal titanium supply chain in the US, according to a Monday Australian bourse filing.

The contract represents a combined total investment of up to $70.7 million to fund a two-phase development program over two years, with IperionX to contribute $23.6 million.

In the initial phase, the department obligated $5 million through the industrial base analysis and sustainment program, and IperionX will contribute $1 million to advance the Titan critical minerals project in Tennessee to "shovel-ready" status.

The department is expected to obligate the remaining $42.1 million throughout the agreement to facilitate vertical integration and increased titanium production capacity at IperionX's titanium manufacturing campus in Virginia.

IperionX's shares rose nearly 8% in early trading on Monday.