Velo3D Lands $32.6M Defense Contract to Address Critical Manufacturing Bottleneck
Landmark Contract Taps Advanced 3D Printing to Break Supply Chain Barriers
In a move designed to shake up the defense manufacturing status quo, Velo3D (NASDAQ: VELO) has secured a $32.6 million contract with the U.S. Department of War’s (DoW) Defense Innovation Unit (DIU). The ambitious aim: to deploy Velo3D’s additive manufacturing technology to resolve major bottlenecks that have been stalling a critical weapon system program.
Project FORGE: Accelerating Mission-Critical Production with Additive Manufacturing
The contract is part of DIU’s Project FORGE, which is tasked with modernizing the U.S. defense industrial base by replacing slow, traditional manufacturing processes with scalable, rapid production solutions. Velo3D will collaborate with both the U.S. Navy and a major industry prime contractor to develop and qualify metal parts previously held back by traditional methods.
The unique value add: Velo3D’s Laser Powder Bed Fusion (LPBF) technology can produce complex, high-value metal components that were previously impossible to manufacture, now at a faster pace and greater reliability.
What Sets Velo3D Apart? U.S.-Built Solutions, Surge Capacity, and Advanced Monitoring
What makes this contract especially noteworthy is Velo3D’s all-U.S.-based production and proprietary technology stack. Highlights include:
- All Velo3D Sapphire® printers assembled in the U.S., capable of producing parts up to 600mm in diameter and one meter tall.
- Compliance with Department of Defense cybersecurity standards and secure network integration—for protection of sensitive manufacturing data.
- Best-in-class in-situ layer-by-layer process monitoring to ensure repeatability and quality across production runs.
The agreement also paves the way to explore developing the largest LPBF printing capability ever established in the U.S.—a significant leap for advanced defense manufacturing.
Deal Details: Collaboration, Impact, and Expansion Potential
| Contract Value | Stakeholders | Technology | Strategic Objective |
|---|---|---|---|
| $32.60M | DIU, DoW, U.S. Navy, Major Industry Prime | Laser Powder Bed Fusion (LPBF), Rapid Production Solution (RPS) | Eliminate manufacturing bottleneck for critical US weapon system |
Through this contract, Velo3D will prototype, qualify, and scale the production of vital components—potentially setting new standards for the speed and security of defense industrial supply chains.
Industry Perspective: A Pivotal Moment for Defense Manufacturing Innovation
This contract is more than a financial milestone for Velo3D. It spotlights a broader industry trend: the defense sector is actively seeking to modernize its manufacturing processes, bolster its industrial resilience, and ensure rapid, secure supply for national security priorities. Velo3D’s proven partnerships with giants like SpaceX and Honeywell underline its reputation for delivering on next-generation, mission-critical parts at scale.
Key Takeaway: New Era for Advanced Manufacturing in Defense
Velo3D’s agreement with the DoW signals a growing shift toward additive manufacturing’s role in enhancing U.S. defense readiness. With advanced technology, secure infrastructure, and now the backing of a major government contract, Velo3D is set to play a defining role in resolving supply chain challenges for some of America’s most important defense programs. Investors, industry observers, and technology enthusiasts alike may want to keep a close eye as this next chapter unfolds.
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