IperionX Ltd Battles Back After Short seller Report and Trading Halt

Highlights:

• IperionX Ltd (ASX: IPX) shares dropped around 7% at the time of writing after a trading halt, following a short-seller report released by Spruce Point Capital.
• The company pushed back strongly, reaffirming its focus on scaling up titanium production at its Virginia manufacturing campus despite the report’s claims.
• IperionX emphasised ongoing U.S. government support and commercial programs as evidence of its long-term strategic and technological strength.

Share plunge hits after halt

IperionX Ltd (ASX: IPX) saw its share price plunge by around 7 per cent upon resumption of trading, at the time of writing, following a voluntary trading halt triggered by a critical report from short-seller Spruce Point Capital Management. The company, focused on titanium production and manufacturing in Virginia, stated it remains fully committed to executing its commercial scale-up plans despite the negative market reaction.

Rejecting the short-sellers’ claims

IperionX responded to the Spruce Point report by outlining multiple U.S. government contracts and support programs it has secured, which it says validate its technology and strategy. The report was published without prior engagement with management or inspection of the company’s manufacturing site, the company noted. Meanwhile, Spruce Point warned that IperionX faces substantial valuation and commercial hurdles, citing potential downside of up to 70-95 per cent.

Commercial strategy remains on track

Despite market turbulence, IperionX highlighted that its Virginia manufacturing campus remains operational and that it is advancing toward producing titanium at scale, aligning with U.S. supply-chain priorities. The company said it has over 200 NDA-backed opportunities and is focused on scrap titanium feedstock supply, customer qualification programs, and ramp-up activities.

What investors should watch

Investors should track IperionX’s next quarterly update for progress on customer contracts, ramp-up of production capacity at the Virginia site and clarity on how it addresses the short-seller’s concerns about scalability and valuation. While the company’s government backing provides a strong narrative, execution will be key to restoring confidence.

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