Record-Breaking System Online at US Navy's Additive Manufacturing Center
AML3D Limited (ASX:AL3) has successfully installed and commissioned its largest custom ARCEMY® system ever built at the US Navy's Additive Manufacturing Center of Excellence in Danville, Virginia. The facility, operated by Austal USA, received this groundbreaking system featuring an 11,000kg positioner and a four-meter linear rail, creating an unprecedented 35 cubic meter build volume.
This milestone installation has triggered the final 50% payment of the contract value and represents a significant advancement in AML3D's strategy to penetrate the US defense sector. The system complements an existing ARCEMY® 6700 system delivered earlier in 2024 to the same facility.
CEO Sean Ebert, recently returned from meetings with US senators and defense partners, highlighted that the US Government's 'Make Shipbuilding Great Again' initiatives are set to expand AML3D's potential US Defense markets by a factor of three.
Wire Additive Manufacturing: Transforming Defense Supply Chains
Wire Additive Manufacturing (WAM®) technology represents a fundamental shift in metal manufacturing approaches. Unlike traditional subtractive manufacturing that removes material from a larger block, WAM® builds parts layer by layer using metal wire feedstock combined with advanced welding science.
WAM® technology addresses critical supply chain vulnerabilities in the defense sector through several key advantages:
- On-demand production of large metal components
- Significant reduction in lead times (weeks instead of months)
- Lower material waste compared to traditional manufacturing
- Localised production reducing logistics complexity and costs
For the US Navy specifically, the AML3D US Navy ARCEMY system provides a strategic solution for maintaining military readiness. The technology enables the production of critical components that might otherwise face extended lead times through conventional manufacturing channels. This capability proves particularly valuable in scenarios requiring rapid replacement of damaged or worn parts for vessels in service.
The WAM® process utilises robotics, advanced materials engineering, and proprietary software to create metal parts that meet stringent performance specifications. The technology combines welding science with automation to produce components that require minimal post-processing, further reducing the time from design to deployment.
Expansion Roadmap: Defense, Aerospace, and Energy Sectors
AML3D is strategically positioned to capitalise on expanding markets across multiple sectors:
- US Navy Shipbuilding: Already established with installations at the Navy's AM Center of Excellence
- Submarine Industrial Base: Track record of successfully deploying WAM technology
- Missile Manufacturing: Recently endorsed for additive manufacturing applications
- New Target Sectors: Utilities, Aerospace, and Oil & Gas industries
The company recently established a new facility in Ohio, positioning itself to serve the growing demand in the US market. This geographic expansion aligns with the increasing acceptance of additive manufacturing in defense applications.
The AML3D US Navy ARCEMY system represents a cornerstone of the company's defense sector strategy. By establishing a presence within the US Navy's additive manufacturing ecosystem, AML3D gains visibility and credibility with adjacent defense contractors and government agencies.
Furthermore, the technologies and processes developed for naval applications often transfer to commercial maritime, energy, and aerospace applications. As AML3D demonstrates success with the US Navy, opportunities for cross-sector applications continue to emerge.
The Investment Case for AML3D
AML3D offers exposure to several compelling growth drivers:
Technological Differentiation
The company's patented WAM® technology and ARCEMY® systems provide a substantial competitive advantage. The ability to produce the largest system of its kind demonstrates AML3D's technology leadership in large-format metal additive manufacturing.
The custom ARCEMY® system recently installed at Austal USA utilises an 11,000kg positioner with a linear rail exceeding four meters, creating a build volume of approximately 35 cubic meters. This capability distinguishes AML3D from competitors with more limited production volumes.
Strategic Defense Relationships
Working with Austal USA and the US Navy positions AML3D within the highly stable defense supply ecosystem. Defense contracts typically offer:
- Long-term relationship potential
- Stable funding environments
- Opportunities for follow-on contracts
- Technology validation that supports commercial applications
The AML3D US Navy ARCEMY system serves as a reference point for additional defense sector opportunities. As the US Navy continues to integrate additive manufacturing into its supply chain strategy, AML3D stands to benefit from increased adoption across naval applications.
Market Expansion
Beyond the initial defense foothold, the company is targeting horizontal expansion into complementary industrial sectors including:
- Aerospace components
- Energy infrastructure
- Maritime applications
- Mining equipment
Each of these sectors faces similar challenges regarding supply chain resilience, lead time reduction, and material efficiency—all areas where AML3D's technology provides solutions.
Supply Chain Enhancement Value Proposition
As global supply chains remain under pressure, AML3D's technology offers a compelling solution for manufacturers seeking to:
- Reduce lead times
- Decrease material costs
- Improve component performance
- Enhance manufacturing resilience
The ability to produce components on-demand near the point of need reduces logistics complexity and increases supply chain agility. This value proposition resonates particularly strongly in defense applications but extends to any industry dealing with complex mineral extraction.
Why Investors Should Keep AML3D on Their Radar
AML3D represents a distinctive opportunity in the advanced manufacturing technology space for several key reasons:
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Growing Defense Portfolio: The company's deepening relationship with the US Navy and defense sector provides a strong foundation for recurring revenue. The successful commissioning of the AML3D US Navy ARCEMY system demonstrates the company's ability to deliver complex manufacturing technology to demanding customers.
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Scalable Technology Platform: The WAM® technology and ARCEMY® systems can address multiple industrial verticals beyond defense. The core technology remains consistent while applications can be customised for specific industry requirements.
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US Expansion Momentum: With a new Ohio facility and expanding US presence, AML3D is positioning itself at the centre of industrial reshoring initiatives. The company's geographic expansion aligns with broader US policy objectives regarding domestic manufacturing capability.
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Acceleration Signals: CEO Sean Ebert has indicated an expected "acceleration in U.S. Defence contract wins" based on increasing confidence in data-driven investment strategies. The endorsement of additive manufacturing for missile manufacturing represents an additional market opportunity.
The installation of the custom ARCEMY® system at the US Navy's Additive Manufacturing Center of Excellence marks a significant milestone in AML3D's growth trajectory. The system represents not only the largest ever built by the company but also signals growing acceptance of additive manufacturing technology within critical defense supply chains.
As the US Government's 'Make Shipbuilding Great Again' initiatives expand, AML3D stands positioned to address a defense market that the company estimates will increase by a factor of three. With established technology, proven defense sector relationships, and expanding applications across multiple industries, AML3D offers a strategic role in investment portfolios aligned with strategic manufacturing trends.
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