# Velo3D, Inc. (NASDAQ:VELO) stock jumped on Monday after the advanced manufacturing specialist secured a federal contract.

*aerospace, business · news · 2025-12-22 · Benzinga*

## Key points

- Velo3D secured a $32.6 million federal contract through the Pentagon's Project FORGE initiative.
- The contract aims to use Velo3D’s additive manufacturing to resolve defense production bottlenecks.
- Velo3D will collaborate with the Navy, DIU, and a prime contractor to design and qualify 3D-printed parts.
- The agreement includes the option to explore printing systems larger than those currently in the U.S. industrial base.
- All Sapphire printers meet Department of Defense cybersecurity standards and support large-format metal printing.

Velo3D, Inc. (NASDAQ:VELO) stock jumped on Monday after the advanced manufacturing specialist secured a federal contract designed to break production bottlenecks in a critical weapons program. The company clinched a $32.6 million agreement with the Department of War (DoW) under its Project FORGE initiative aimed at increasing the output of complex components. The move is expected to ease manufacturing slowdowns affecting defense supply chains. Pentagon Targets Production Bottlenecks Project FORGE focuses on addressing critical capacity constraints that have hindered large-scale production for an important U.S. weapons system. Also Read: Velo3D Stock Soars As CEO Confirms Key SpaceX Raptor Role, Names Anduril As A Current Customer By integrating metal additive manufacturing into the production mix, the Pentagon hopes to speed deliveries and reduce reliance on slower, traditional machining methods. Velo3D’s role will include designing and qualifying 3D-printed parts alongside the U.S. Navy, DoW’s Defense Innovation Unit (DIU), and a prime defense partner. The company will use its Rapid Production Solution (RPS) systems to deliver prototype components that meet military standards and enable scalable output. Pentagon And CEO Commentary DIU Program Manager Derek McBride said the collaboration highlights the Pentagon’s focus on integrating cutting-edge commercial technologies with pressing defense needs. Dr. Arun Jeldi, CEO of Velo3D, added that the company’s in-house Laser Powder Bed Fusion printing gives it a leg up in producing larger critical parts with speed and reliability. Manufacturing Capabilities And Compliance All of Velo3D’s Sapphire printers are built in the U.S. and are capable of large-format metal printing, while also complying with Department of Defense cybersecurity standards. The contract even includes an option to explore larger-scale printing systems not currently available in the domestic industrial base. VELO Price Action: Velo3D shares were up 11.45% at $12.07 during premarket trading on Monday, according to Benzinga Pro data. Read Next: Honeywell’s Legal Bill And Outlook Cut Rattle Investors Photo by Michael Vi via Shutterstock

**Companies:** Velo3D, Inc.
**Countries:** United States

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