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- Amaero International Limited to partner with Rio Tinto to develop the supply chain of an alloy for 3D printing.
- As part of the collaboration, Rio Tinto will provide alloy billets to Amaero for 3D printing.
- The two parties intend to enhance the production of ‘HOT Al' alloy in the US, Australia, and internationally.
The stocks of metal additive manufacturer Amaero International Limited (ASX:3DA) surged 23.5% to A$0.71 in the morning session, registering the biggest intraday percentage gain since 10 September 2020.
3DA shares surged following the Company's collaboration deal with leading miner Rio Tinto (ASX:RIO) to develop the supply chain of 3D printing alloys.
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The Company's stock was 1.7% down this year as of the last close. However, the shares have rallied to their highest level since 16 February 2021 and are on track to post a second consecutive session of gain. At the time of writing, the shares were up 14.782% at A$0.660.
About the Collaboration
Amaero has announced a partnership with leading miner Rio on establishing a supply chain for the development of High Operating Temperature Aluminium Alloy, “Amaero HOT Al”. Rio will supply alloy billets to Amaero to be processed into powder for 3D printing under the deal.
Copyright © 2021 Kalkine Media Pty Ltd
Rio Tinto has recently started aluminium scandium production from its Fer et Titane (RTFT) metallurgical complex in Canada. The mining giant has developed an innovative technology to extract high-quality scandium oxide from titanium dioxide’s production waste at its ilmenite mine in Quebec. The Company sold its first batch of production to Amaero. Rio is an innovator in aluminium creation, and it has dispatched the world's first certified low CO2 primary aluminium brand to pioneer responsible production standards.
License Rights for Patented Alloy
Amaero holds the commercial license for patented alloy production, Amaero HOT A, developed by Monash University. Amaero HOT A is the latest high-end aluminium alloy with significant amounts of scandium and manganese, used for 3D printing that can have high durability and first-class strength even at higher temperatures.
Source: 3DA ASX Update, dated 11 March 2021
Aluminium-scandium alloys have significant importance in the aerospace, sports, and defence sectors where lightweight and high-strength material with thermal durability and good welding properties are required.
The alloys are widely used in the manufacturing of baseball bats, tennis rackets, bicycle frames, sports equipment etc.
Amaero has also applied for broad international patent coverage for its most recent heat treatable aluminium alloy, and the applicating is at its last phase of endorsement. The application for a broad international patent aligns with its roadmap for developing its product base by commercialising metal alloys.
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Terms of the Agreement
- The Amaero’s agreement with Rio for the supply of e AlMnSc billet and AlSc master alloy products is valid for three years.
- Both the parties, including Rio and Amaero, will maintain their intellectual property rights. Apart from that, Amaero will also provide a limited sub-license to Rio for its Scandium Alloy Patent, subjected to various terms and conditions.
- Rio also holds the right of first refusal upon termination or expiration of the agreement to continue the supply under the same conditions, excluding price.
- During the contract period, Rio will supply a forecasted 60-75 tonnes of AlMnSc billet products to Amaero at an estimated cost of over A$9 million.
- As an additional termination clause, Rio can cancel the contract at any point in time if Amaero is unable to meet the minimum forecasted quantities during the agreement period.