Velo3D Secures $32.6 Million Defense Contract to Address Manufacturing Constraints

Velo3D (NASDAQ: VELO) has been awarded a $32.6 million contract by the U.S. government to help remove a critical manufacturing bottleneck affecting a major defense program. The award was issued through the Defense Innovation Unit (DIU) under its Project FORGE initiative, which is focused on strengthening production capacity across the U.S. defense industrial base.

Using Additive Manufacturing to Increase Throughput

Under the agreement, Velo3D will work alongside DIU, the U.S. Navy, and a prime defense contractor to prototype and qualify metal components using advanced additive manufacturing techniques. The goal is to replace traditionally manufactured parts that are slowing production with additively manufactured alternatives that can be produced more efficiently and at scale.

Velo3D plans to deploy its Rapid Production Solution and high-performance metal 3D printing systems to manufacture complex parts that are difficult, time-consuming, or costly to produce using conventional methods.

Qualification and Scale Are Central to the Program

A key focus of the contract is ensuring that additively manufactured components meet strict performance, quality, and reliability standards required for defense applications. In parallel, the program may explore the development of large-format laser powder bed fusion printing capabilities, potentially enabling production of some of the largest metal additively manufactured parts in the United States.

Strengthening the Defense Manufacturing Base

By qualifying advanced manufacturing processes for mission-critical components, the program aims to improve production speed, reduce supply chain risk, and increase overall system availability. The contract reflects growing interest from the defense sector in additive manufacturing as a way to modernize production and overcome capacity constraints.

For Velo3D, the award highlights the role its technology can play in supporting high-reliability manufacturing environments where precision, repeatability, and scale are essential.