Molybdenum is moving from a niche industrial metal to a strategic resource at the centre of global supply chain debates. Recent policy shifts and export controls have sparked questions about its role in defence and technology, signalling a new era where access to this material could shape industrial and geopolitical outcomes.

Supply & demand dynamics

Molybdenum mine production is highly concentrated in a handful of countries and is largely tied to copper mining. This dependency makes its availability vulnerable to fluctuations in the copper market. China remains the largest producer and consumer, with most supply coming from primary sources and byproduct copper mining continuing to play a critical role.

On the demand side, molybdenum is indispensable for industries such as oil & gas, construction, and steel manufacturing. Beyond these traditional sectors, its role in military and defence applications is emerging as a major growth driver. As an alloying agent, molybdenum enhances strength and heat resistance, qualities essential for advanced defence technologies.

Geopolitical shifts

In February, China added molybdenum to its list of controlled export materials, sending shockwaves through global markets. This move highlighted the metal’s strategic importance and dual-use potential. The decision prompted many to take a closer look at molybdenum’s applications, particularly in military contexts.

Meanwhile, there is market speculation that the USA increased domestic output in the second quarter of 2025, to build stockpiles - although producers have not officially confirmed this.

These developments underscore a growing trend: molybdenum is no longer just an industrial metal; it’s becoming a critical resource in the global race for technological and defence superiority.

As geopolitical tensions reshape supply chains, molybdenum’s role in both civilian and military sectors will continue to expand. For stakeholders across mining, manufacturing, and policy, understanding these dynamics is essential to navigating the challenges, and opportunities, of this evolving market.

Dive deeper into the dynamics shaping molybdenum markets by watching our analysis here.

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