Velo3D, Inc. (NASDAQ:VELO) shares climbed about 10% on Monday after the company announced it had been awarded a $9.8 million contract spanning five years with the Defense Logistics Agency.
The metal additive manufacturing firm said the agreement is structured as an Indefinite Delivery Indefinite Quantity contract tied to the Defense Logistics Agency’s Joint Additive Manufacturing Acceptability Pilot Parts Program. The program is designed to speed up the use of additively manufactured components across Department of War maintenance and sustainment operations.
Through the contract, Velo3D will utilize its Laser Powder Bed Fusion technology along with its Rapid Production Solution platform to manufacture complex metal parts for multiple U.S. military branches, including the Army, Navy, Air Force, Marine Corps, and Space Force. The effort focuses on components that have traditionally experienced extended lead times, reduced manufacturing sources, or a shortage of domestic suppliers.
The JAMA Pilot Parts Program aims to develop consistent technical standards and procurement processes for additively manufactured replacement and spare parts. The initiative supports broader Department of War efforts to improve supply chain resilience and address obsolescence issues affecting older military systems.
Velo3D noted that its Sapphire printers are manufactured in the United States and are capable of producing parts up to 600 millimeters in diameter and one meter in height. The company’s Rapid Production Solution combines advanced additive manufacturing equipment, engineering expertise, and distributed production capacity intended to support projects from initial qualification through long-term production and surge demand scenarios.