AML3D: Pioneering Defense Supply Chain Reshoring Through Additive Manufacturing Innovation

The U.S. defense supply chain faces a perfect storm: aging infrastructure, reliance on foreign manufacturing, and the urgent need to modernize critical systems like submarines and missiles. Enter AML3D (AML), an Australian firm specializing in large-scale additive manufacturing (AM), whose recent strategic moves with the U.S. Navy position it to capitalize on the global push for supply chain reshoring and advanced manufacturing adoption.

Key Strategic Moves: Aligning with Defense Priorities
AML3D's partnerships with the U.S. Navy and its allies since 2024 highlight its role in addressing these challenges. A pivotal agreement—the Manufacturing License Agreement (MLA) with Blue Forge Alliance (BFA)—granted AML3D access to submarine component data and production rights, enabling it to shorten lead times for critical parts from 17 months to just five weeks. This transformation is exemplified by its recent delivery of Copper-Nickel tailpieces for Virginia-Class submarines under the AUKUS partnership, a project emblematic of the alliance's push for self-sufficiency in nuclear capabilities.

The installation of AML3D's largest ARCEMY system at Austal USA's Danville, Virginia, facility further underscores its commitment to embedding AM into defense supply chains. This 35-cubic-meter system, capable of producing components weighing up to 11,000kg, reduces material waste by 90% compared to traditional machining. Such efficiency is critical as the U.S. seeks to revitalize its shipbuilding industry—currently lagging behind South Korea and China—which Admiral Jonathan Rucker has called a “national security imperative.”

Technology Differentiation: WAM® as a Game-Changer
AML3D's Wire Additive Manufacturing (WAM®) technology is its crown jewel. Unlike traditional subtractive methods or powder-based AM, WAM® uses metal wire as feedstock, enabling larger builds at lower costs. This makes it ideal for producing the massive, complex parts required for submarines and missiles, which often rely on legacy designs incompatible with modern manufacturing.

The scalability of WAM® is reflected in its cross-sector appeal. Beyond defense, AML3D's $2.27 million contract with the Tennessee Valley Authority—a public utility—demonstrates its adaptability to energy infrastructure repair. This diversification reduces reliance on defense spending alone, a key risk mitigant for investors.

Market Opportunities: Reshoring and Defense Modernization
The U.S. government's “Make Shipbuilding Great Again” initiative, paired with the Department of Defense's goal of installing 100 AM systems by 2030, creates a tailwind for AML3D. The firm's MLA agreement and Ohio facility expansion—targeting 1,600 annual components by 2030—align perfectly with these targets. Meanwhile, geopolitical tensions and China's dominance in global shipbuilding (50% of merchant vessels) amplify urgency for domestic solutions.

AML3D's June 2025 board appointment of Frederick J. Stefany, a U.S. Navy veteran, signals strategic deepening into defense procurement. Similarly, its BAE Systems contract in the UK underscores its expanding footprint in global defense markets.

Financial Outlook: Scaling with Data-Driven Precision
With over AUD $16 million in U.S. defense orders secured since 2023, AML3D's growth trajectory is clear. The MLA agreement's open-ended structure and recurring revenue potential from facility expansions suggest sustained momentum. CEO Sean Ebert's emphasis on “data-driven strategies” to accelerate contract wins further reinforces scalability.

Investment Considerations: Risks and Rewards
While AML3D's technology and partnerships are compelling, risks remain. Over-reliance on U.S. defense contracts could expose it to policy shifts, and competition from traditional manufacturers may intensify. However, the firm's first-mover advantage in large-scale WAAM and its alignment with reshoring mandates provide a robust moat.

For investors, AML3D represents a leveraged play on two secular trends: defense modernization and supply chain resilience. With a current valuation that reflects its early-stage growth and a 12-month stock performance showing 25% gains (as of June 2025), the stock could be positioned for further upside as it scales.

Conclusion: A Strategic Bet on the Future of Defense Manufacturing
AML3D is not merely a supplier of parts—it is a catalyst for transforming how nations produce and sustain critical defense infrastructure. As the U.S. and its allies prioritize reshoring and innovation, AML3D's WAM® technology and strategic execution place it at the vanguard of this revolution. For investors willing to look beyond near-term volatility, this could be a rare opportunity to stake a claim in a sector poised for decades of growth.

Investment advice: Consider AML3D for portfolios seeking exposure to defense reshoring and advanced manufacturing, with a focus on long-term growth. Monitor geopolitical developments and contract wins for near-term catalysts.