6K Additive (ASX:6KA) said it has been awarded a Phase II contract valued at about $2 million over an 18-month term, subject to standard US government contract terms including performance milestones and termination rights, according to a Thursday statement.

The company said the initiative focuses on converting domestic scrap, including nickel, titanium, tungsten, and niobium, into high-value metal powders for additive manufacturing and defence readiness.

"The US Government has made it clear that to advance our defense readiness, we cannot rely on geopolitically sensitive regions for the materials essential to our most advanced weapon systems," said Chief Executive Frank Roberts.

The company's shares were up 4% in recent Thursday trade.