Amaero (ASX: 3DA) has reported considerable capital savings for its planned argon gas recycling plant in Tennessee, and ordered the plant’s fourth advanced EIGA Premium atomiser, accelerating the growth of US powder production capacity across titanium and refractory alloy programs.
Value engineering of the plant scope, delivery structure and operating model has reduced the estimated total capital cost by 60% from $15 million to $6m.
A targeted installation date of 2026 will bring forward argon recovery and cost savings by approximately 12 months, improving early-stage margin contribution and balance sheet strength.
The company has also secured an 80% reduction in the plant’s variable input costs, strengthening unit economics, improving cash conversion per kilogram of argon provided, and enhancing its competitive cost position.
Plant and Equipment Investment
Amaero has committed $57m of a planned $72m investment in plant and equipment and expects to meet its target before mid-2026.
The company has delivered $27m in improvements to the 9,290 square metre plant, increased throughput for commercial powder production and processing, and commissioned powder metallurgy-hot isostatic pressing systems, ancillary powder processing equipment, and two of four atomisers.
The US Export-Import Bank has committed US$22.83m for equipment financing, with the company expecting to draw down US$15m by year end and the remainder drawn by mid-2026.
Amaero said the loan’s match-funding approach would avoid idle capital, keep cash resources high during scaling phases, and support execution certainty of long-lead infrastructure.
EXIM’s loan – the first under the Make More in America initiative to support advanced materials and additive manufacturing – represents the US government’s commitment to addressing longer-term weaknesses in domestic supply chains.
Next-Generation Technology
Amaero’s next-generation EIGA industrial machine uses electrode induction gas atomisation to create high-quality, spherical metal powders (including titanium and refractory alloys) for 3D printing.
The technology represents an industry-leading capability for reactive and refractory metals in aerospace and defence sectors due to the absence of crucible and nozzle contamination risk, and is a key part of Amaero’s strategy to build a US domestic supply chain for critical advanced materials.
When combined with a 10-year subsidised electricity contract secured with Tennessee Valley Authority at approximately US$0.058 kilowatt-hours (or 70% below the national average), the company maintains a structural cost advantage relative to domestic and international competitors.
Amaero commissioned its second custom-designed EIGA Premium unit in June and expects to commission the fourth atomiser in mid-2027.
