The AML3D Ltd (ASX: AL3) share price is racing higher again on Monday.
At the time of writing, the ASX defence stock is up over 10% to 21.5 cents.
This means that the metal additive manufacturing technology company's shares are now up over 130% since this time last year.
Why is this ASX defence stock surging today?
Investors have been bidding AML3D's shares higher today after it announced the delivery of a Copper-Nickel component order for the U.S. Navy's Virginia-Class nuclear submarine program.
According to the release, the prototype tailpiece components, which are valued at approximately A$156,000, have been supplied for testing and for in-service trials on board a Virginia-Class nuclear submarine.
Management believes that the successful completion of this component order demonstrates how the ASX defence stock's proprietary additive manufacturing technology supports the establishment of a resilient trilateral AUKUS supply chain.
What is it?
The release notes that AML3D's market-leading advanced additive manufacturing technology is delivering a step change in production efficiency and component quality for the U.S. Navy's Submarine Industrial Base.
It highlights that the Virginia-Class submarine prototype tailpiece components were 3D metal printed in less than five weeks. This compares extremely favourably to an average 17-month lead-time via traditional manufacturing.
Over the past two years, AML3D has partnered with the U.S. Navy's Maritime Industrial Base (MIB) Program and BlueForge Alliance to meet emergent material readiness needs for U.S. submarines, and integrating metallic additive manufacturing as an alternative solution to support critical supply chain gaps and constraints.
Management feels that its successful delivery of this Virginia-Class tailpiece component demonstrates how Australian suppliers are being leveraged to contribute under a tri-lateral industrial base model.
Commenting on the news, the ASX defence stock's CEO, Sean Ebert, said:
AML3D has been working with the U.S. Navy and its partners for close to two years. In that time, we have created a successful model that includes cross-continental coordination, information sharing, and the deployment of our ARCEMY advanced 3D metal printing technology across a network of U.S. defense industry and academic experts. We have also completed several alloy testing and characterisation programs including Copper-Nickel, which allows us to supply components to the U.S. Nuclear submarine program.
Admiral Jonathan Rucker from the U.S. Program Executive Office Attack Submarines adds:
Collaboration in this space is critical to our ability to build and sustain Virginia Class submarines now and for the next many decades. Through partnerships like the one with AML3D, we are creating resiliency and robustness domestically as well as in critical areas of Naval operation.
The post Up 130% in a year, why this ASX defence stock is soaring again today appeared first on The Motley Fool Australia.
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