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Metal Powder Works Limited (ASX: MPW) has formed a strategic partnership with Austal USA to co-develop specialized metal powders for additive manufacturing in the naval defense sector. The collaboration will focus on refining powder specifications to meet US Navy standards, particularly for Virginia and Columbia-class submarines.

MPW's copper-nickel alloy powders have already met Navy specifications, facilitating expanded cooperation. The partnership is positioned to enhance US shipbuilding capabilities, which have lagged behind China's, and addresses supply chain bottlenecks in naval construction.

MPW's patented DirectPowder process allows for lower production costs and consistent quality. The partnership could lead to a commercial offtake agreement within 12-24 months, contingent on successful validation of powders. MPW's market capitalization is approximately $344 million, with shares rising 12% post-announcement.