The AML3D Ltd (ASX: AL3) share price is racing higher in mid-morning trade. This comes after the advanced 3D parts manufacturer announced it has been granted a new Australian patent.
At the time of writing, AML3D shares are swapping hands for 22.5 cents, up 7.14%.
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AML3D strengthens market leading WAM process
Investors are pushing AML3D shares higher after digesting the company's positive update.
According to its release, AML3D announced it has been granted a patent to add to its portfolio. Approved by the Australian Patent Office, the latest addition will seek to further protect AML3D's intellectual property.
The patent discusses the company's Wire Additive Manufacturing (WAM) process, covering the method and apparatus for manufacturing 3D metal parts.
AML3D's WAM technology uses 3D metal printers to weld metal wire to create near net shapes. This is considered a more sustainable way of manufacturing as compared to machining from billet, reducing material waste by 80%.
AML3D stated that the WAM technology "significantly reduces the cost of manufacturing, time to build and also allows for clients to customise parts for their specific needs."
The addressable market for 3D printing is growing at a fast rate. Particularly given COVID-19 disrupted international supply chains, the industry is now seeking to minimise risk by adopting 3D printing technology. This allows companies to manufacture complex 3D metal parts in-house without relying on global logistics.
As such the total addressable market for 3D printing is estimated to be around US$10 billion. In the next 5 years (2026), the 3D printing market is forecasted to increase to US$63 billion.
AML3D managing director, Andrew Sales commented:
This is a significant milestone for our company and our journey. The granting of this patent is further validation of our technology and also secures our position as a provider of a major 3D Printing process.
The market demand for advanced wire feedstock additive manufacturing continues to accelerate driven by the global pandemic. And international patent protection will further strengthen our position in a significant and growing addressable market.
AML3D share price snapshot
Despite today's strong rise, AML3D shares are down almost 40% for year-to-date performance.
The company's share price reached an all-time high of 73 cents last September. This came on the back of its contract with Austal Limited (ASX: ASB) to co-develop components for maritime defence applications. However, since then its shares have continued on a downhill trajectory.
