April 21, 2022 - No. 24 In This Issue : 6 Dead in Fire at Russian Aerospace Defense Research Institute – State Media : Mystery drone: How the Air Force fast-tracked a new weapon for Ukraine : The Aerospace Industry Is Grappling With A Titanium Supply Shortage : Moon lander spacecraft unveiled : Rolls-Royce launches $204M aerospace expansion near Purdue : FAA Downgrades Russia Air Safety Rating 6 Dead in Fire at Russian Aerospace Defense Research Institute – State Media A fire at the Russian Aerospace Forces' Central Scientific Research Institute in Tver.Alisa Dovydenko / TASS Six people died Thursday when a fire engulfed a Russian military research institute involved in developing air defense systems in the northwestern city of Tver, local officials said. Russian television showed thick black smoke rising from inside the yellow four-story building of the Central Research Institute of the Russian Air and Space Forces. Several of the institute’s employees had to jump out of windows on the upper floors to escape the flames, according to witnesses quoted by broadcasters. The Tver regional government said in a statement carried by state media that six people were killed and 21 injured in the blaze, updating earlier tolls. Preliminary information suggests the fire was caused by faulty electric wiring, the TASS state news agency said. The defence ministry said the institute focuses on research related to Russian air and space defense, as well as the development of new anti-aircraft systems. Accidental fires are common in Russia, where hundreds of blazes are recorded each year due to aging and dilapidated infrastructure and non-compliance with safety standards that are often lax. https://www.themoscowtimes.com/2022/04/21/6-dead-in-fire-at-russian-aerospace-defense-research-institute-state-media-a77446 Mystery drone: How the Air Force fast-tracked a new weapon for Ukraine The “Phoenix Ghost” drones were developed by California-based Aevex Aerospace. A senior Defense Department official said the Air Force developed the program quickly in response to Ukraine’s specific requirements. The Biden administration sent the Washington defense establishment scrambling on Thursday when it released the details of its $800 million security package for Ukraine. Not long after President Joe Biden announced that the U.S. was rushing weapons to arm Ukrainian forces as they push back against their Russian invaders, the Pentagon emailed out a list of the items, which included howitzers, tactical field equipment and spare parts. Then came something no one had seen before: 121 “Phoenix Ghost” drones. The mystery aircraft was developed by California-based Aevex Aerospace, a company that was founded in 2017 and employs 500 people with offices in California, North Carolina and Virginia. The Air Force drone program, which was already under development before Russia’s invasion, matched Ukraine’s specific requirements and has “similar capabilities” to the AeroVironment Switchblade drone already in Ukraine, Pentagon spokesperson John Kirby said on Thursday. The Switchblade, which the U.S. began sending to Ukraine this month, is a 5.5 lbs. drone that can loiter over an area for 30 to 40 minutes before an operator slams it into its target, detonating a small warhead. Aevex Aerospace could not be reached for comment. The company, which lists a variety of drones for different purposes, does not feature Phoenix Ghost on its website. Aevex owns a training range in Roswell, N.M., which is likely where the company tested the Phoenix Ghost. The Phoenix Ghost “is a different type of aircraft, it’s a one-way aircraft that is effective against medium armored ground targets,” said retired Lt. Gen. David Deptula, dean of the Mitchell Institute for Aerospace Studies and member of the Aevex board. The drone can take off vertically, fly for six-plus hours searching for or tracking a target, and operate at night using its infrared sensors, Deptula said. Phoenix Ghost has a longer loitering capability than the Switchblade, which can fly for less than an hour, he said. Aevex is a combination of three companies that were already established in the defense sector: Merlin Global Services, CSG Solutions and Special Operations Solutions. The fast-track development is part of a larger push by the Pentagon to team up with small firms to develop and buy new technologies outside of the cumbersome acquisition hierarchy that often slows down or quashes leap-ahead technologies. “It was developed for a set of requirements that very closely match what Ukrainians need right now in the Donbas,” Kirby said. https://www.politico.com/news/2022/04/21/mystery-drone-air-force-new-weapon-ukraine-00026970 The Aerospace Industry Is Grappling With A Titanium Supply Shortage • The current geopolitical climate is wreaking havoc on metals markets. • Titanium, in particular, is facing a major supply shortage. • The aerospace industry depends on titanium. Like other industry insiders, the team here at MetalMiner has paid very close attention to the way international sanctions on Russia are affecting metals markets. When the invasion of Ukraine started, aluminum, zinc, and even steel had been strongly supported. Since early March, those prices have fallen back (as have Russian troops). Despite this, we feel that the titanium market is long overdue for some investigation. Russian & Ukrainian Titanium is Crucial to US Industry It’s true that Russian troops have withdrawn from many major cities in Ukraine. However, it’s likely this is just a tactical move. Once Russian forces regroup, they could escalate the fighting back east. Most experts feel the war will move to disputed provinces like Donbas and the southern “corridor” to Crimea. Whatever happens, this geopolitical crisis has massive ramifications for metal prices. That’s why it’s odd that the titanium market hasn’t seen more attention. After all, the US is far more dependent on Russian and Ukrainian supplies of titanium than other metals. According to US import data, the two countries supply an annual average of 37% of US titanium bars and rods. Of this, Russia alone provided some 50% of rolled products, while both delivered more than 80% of blooms and slabs. Titanium Market Amid Russian War a Threat to Boeing Most US titanium was delivered by the Verkhnyaya Salda-based company, VSMPO-Avisma. However, as the Financial Times reported this week, Boeing recently stopped buying titanium from the corporation despite the latter being its largest supplier. As it turns out, VSMPO-Avisma is actually a sub-corp of Russian state-owned defense company Rostec. In this case, Boeing had little option. As a defense contractor with huge commercial interests, it would be near impossible for the company to continue buying from Russia. In fact, this was likely true before the surge in negative sentiment related to surfacing Russian war atrocities. Fortunately, Boeing does have options. Looking to Japan for Supply Relief Japan is already a major supplier of aerospace quality titanium sponges. Despite accounting for only about a 1/5th of the global market, the country provides more than 80% of US sponge imports. Equally important to the equation are Japan’s high-quality downstream producers. These include Toho Titanium and Osaka Titanium Technologies, two of the few high-grade titanium manufacturers in the world. Unfortunately, both firms are reportedly near capacity already. In fact, the Financial Times recently stated that Toho was already at capacity in the first quarter of 2022. The company even had to turn away orders from US Timet. Fortunately, Japan’s capacity can and probably will increase before long. However, the move to more costly Japanese suppliers will still result in higher prices throughout the Titanium market. US companies like Boeing will not be alone in their search for non-Russian titanium supplies. Despite having significant European options, aerospace competitor Airbus is also a significant consumer of VSMPO products. Airbus leaders are even waging a fight to have titanium excluded from sanctions altogether. Titanium Market Bracing for Price Increases All of this seems to indicate that titanium prices could reach pre-financial crisis levels of over $15/kg within the next two years. As of this writing, there are four major countries that are certified to produce and ship titanium for the aerospace industry. They are Russia, Ukraine, Kazakhstan, and Japan. With the first two out of the picture for the immediate future, upcoming supply constraints could make the current titanium market look like a surplus by comparison. https://oilprice.com/Metals/Commodities/The-Aerospace-Industry-Is-Grappling-With-A-Titanium-Supply-Shortage.html Moon lander spacecraft unveiled Astrobotic has unveiled the flight model of its Peregrine lunar lander during a visit by top NASA and government officials to the company’s headquarters. The flight model, as opposed to earlier test models, is the version of Peregrine that will actually fly to the Moon on a United Launch Alliance Vulcan Centaur rocket. Its unveiling is a sign of Peregrine’s state of readiness as it moves closer to its launch date, scheduled for the fourth quarter of this year. Peregrine is the first lander in NASA’s Commercial Lunar Payload Services (CLPS) initiative to unveil its flight model, and could become the first American spacecraft to land on the Moon since the Apollo program. Peregrine’s unveiling took place at Astrobotic’s Pittsburgh headquarters, an approximately 50,000ft² state-of-the-art facility dedicated to developing and operating lunar spacecraft. Because the flight model must be kept free of contamination of sensitive spacecraft components, attendees were required to suit up in white coveralls and hairnets to enter the cleanroom where Peregrine is being assembled. “This lunar lander build is a dream come true,” said John Thornton, CEO of Astrobotic. “This is why our company was founded 15 years ago. It represents the culmination of countless hours over many years by hundreds of people to design and assemble the lander, to create the lunar delivery market, and to establish the facilities and supply chain needed to ensure the success of commercial space missions like Peregrine’s long into the future.” Also present in the cleanroom were the 24 payloads that Peregrine will be delivering to the lunar surface. These include scientific instruments from three national space agencies – including 11 from NASA alone – a rover from Carnegie Mellon University, several payloads from commercial companies, and cultural messages from individuals around the Earth. The payloads are already integrated onto Peregrine’s flight decks, which are awaiting installation on the greater lander. Once Peregrine’s integration is complete, it will head to spacecraft environmental testing, before being shipped to Cape Canaveral in Florida to begin its final preparations for launch in Q4 2022. www.astrobotic.com https://www.aero-mag.com/moon-lander-spacecraft-unveiled Rolls-Royce launches $204M aerospace expansion near Purdue WEST LAFAYETTE, Ind. (WLFI) — Purdue University's fast-growing Discovery Park District just landed a nearly quarter-billion-dollar investment. As News 18 reported, Purdue officials just announced a $73 million high-speed propulsion lab planned for the district. But Rolls-Royce topped that Thursday with the announcement of a $204 million project to expand one building and construct two new test facilities. "We're talking 30 brand new jobs that pay over 90-thousand-dollars a piece," said West Lafayette Redevelopment Commission President Larry Oates. Oates said the project is part of Purdue's expansion into the western part of campus. "Now, we're going to the further portion of the western lands and now we're adding those jobs and more research facilities out there," he said. "This will really give a boon to the future for West Lafayette as far as development." The company plans to add a new 60-thousand-square-foot wing to its existing aerospace building. Development Director Erin Easter said Purdue, West Lafayette and Rolls-Royce have a decades-long relationship. "In that building, they house 15 Rolls Royce employees currently who do testing and R-and-D work, so we had an existing relationship with Rolls Royce," she said. Rolls-Royce will add 30 more jobs at two new testing facilities near Newman Road totaling nearly 60-thousand-square feet. "It continues to diversify our economic base to create a sustainable network of corporations, business research throughout the entire community," Easter said. Construction on the Rolls Royce expansion is set to begin this year. The project will support the company's testing, research and design in hybrid electric and aerospace technology. https://www.wlfi.com/news/rolls-royce-launches-204m-aerospace-expansion-near-purdue/article_e12e4fee-c0da-11ec-a079-f77d3a23e788.html FAA Downgrades Russia Air Safety Rating The FAA announced on Thursday that it has downgraded the air safety rating for Russia from a Category 1 to a Category 2 rating. The change restricts Russian air carriers to current levels of existing service to the U.S. and bans them from carrying the code of U.S. carriers on any flights. The FAA noted that there are currently no airlines operating regularly scheduled flights between Russia and the U.S. “The Federal Aviation Administration (FAA) has downgraded the air safety rating for Russia, restricting any expansion of service or partnerships since Russia’s Federal Agency for Air Transport does not comply with International Civil Aviation Organization (ICAO) safety standards,” the agency said in a statement. The FAA did not list specific reasons for the downgrade beyond failure to comply with ICAO standards. Air safety rating assessments are conducted under the FAA’s International Aviation Safety Assessment (IASA) program, which reviews the civil aviation authorities of “all countries with air carriers that have applied to fly to the United States, currently conduct operations to the United States or participate in code-sharing arrangements with U.S. partner airlines.” Assessment results fall into two categories, with Category 1 connoting countries found to comply with ICAO safety standards and Category 2 indicating that IASA found the country does not comply with ICAO standards. Elements reviewed include a country’s primary aviation legislation; specific operating regulations; state civil aviation system and safety oversight functions; technical personnel qualification and training; technical guidance, tools and the provision of safety critical information; licensing, certification, authorization, and approval obligations; surveillance obligations; and resolution of safety concerns. https://tinyurl.com/5n83tvak Curt Lewis