Velo3D Inc. (VELO) just got a nice vote of confidence from the Pentagon, and investors noticed. Shares popped over 11% in premarket trading Monday after the advanced manufacturing company secured a $32.6 million federal contract to help solve a production problem that's been slowing down a critical weapons program.
The deal is part of Project FORGE, a Department of War initiative aimed at breaking through capacity constraints that have created bottlenecks in defense manufacturing. The basic idea: traditional machining methods are too slow for the scale the military needs, so the Pentagon is turning to metal additive manufacturing to speed things up and get weapons components out the door faster.
How 3D Printing Fixes Defense Bottlenecks
Project FORGE specifically targets production slowdowns that have hampered large-scale output for an important U.S. weapons system. By bringing metal 3D printing into the mix, the Defense Department hopes to reduce its reliance on older, slower manufacturing techniques and accelerate deliveries across defense supply chains.
Velo3D will work directly with the U.S. Navy, the Defense Innovation Unit (DIU), and a prime defense contractor to design and qualify 3D-printed parts that meet military standards. The company plans to deploy its Rapid Production Solution systems to churn out prototype components that can scale to full production volumes.
What Makes Velo3D's Technology Different
Derek McBride, a program manager at DIU, highlighted that the collaboration shows how the Pentagon is actively integrating cutting-edge commercial technologies to address urgent defense challenges.
Dr. Arun Jeldi, CEO of Velo3D, pointed out that the company's in-house Laser Powder Bed Fusion printing technology gives it an edge when it comes to producing larger critical parts with the speed and reliability the military demands.
Domestic Manufacturing And Security Standards
All of Velo3D's Sapphire printers are manufactured in the United States and designed for large-format metal printing. They also comply with Department of Defense cybersecurity standards, which is increasingly important as the Pentagon scrutinizes supply chain security.
Interestingly, the contract includes an option to explore even larger-scale printing systems that aren't currently available in the domestic industrial base. That suggests the Pentagon sees potential for Velo3D's technology to expand beyond what's commercially available today.
VELO Price Action: Velo3D shares were up 11.45% at $12.07 during premarket trading on Monday.
