China molybdenum concentrate output rises on alloy demand in 1H

Molybdenum

China molybdenum concentrate output increased in the first half. China molybdenum concentrate output reached 67,568t, up 4.2 percent year on year. Strong ferro-moly purchases by steelmakers supported higher operating rates.

Demand lifts production despite softer steel sentiment

Steelmakers bought 75,000–76,000t of ferro-moly in 1H. That was about 10 percent higher than last year. As a result, producers raised runs and stabilized supply. China molybdenum concentrate output therefore tracked end-use alloy demand. Procurement for stainless and high-strength steels underpinned volumes.

June dip masks regional divergence

June production fell to 10,550t, down month on month and year on year. Planned maintenance at several mines drove the decline. However, Henan limited the pullback with 3,335t in June. Output there slipped 0.8 percent from May but rose 6.3 percent year on year. Meanwhile, Heilongjiang dropped to 891t, sharply lower on both bases. Shaanxi and Inner Mongolia produced 1,208t and 1,530t, also softer year on year.

Outlook: supply steadies as maintenance eases

Producers expect steadier runs as maintenance programs end. Therefore, China molybdenum concentrate output should align with alloy offtake. Watch ferro-moly tender volumes and spot premiums for direction. Substitution risk remains low given performance needs in critical steels.

The Metalnomist Commentary

Moly demand remains tethered to high-spec steel orders, not broad steel cycles. Regional variability matters: Henan’s resilience offsets northern softness. Pricing will track ferro-moly tenders and mine maintenance cadence into Q3.

China's JDC Lifts Ferro-Molybdenum Alloy Output in 2024

Jinduicheng Molybdenum

Jinduicheng Molybdenum Reports 47% Surge in Alloy Production

China’s Jinduicheng Molybdenum (JDC) significantly boosted its ferro-molybdenum alloy output in 2024, highlighting strong operational momentum. JDC produced 22,847 tonnes of molybdenum metal equivalent, marking a 47% increase from 2023. Sales reached 21,748 tonnes, up 36% year-on-year.

The state-controlled firm also ramped up production of ammonium molybdate and molybdenum powder, growing by 11% and 12%, respectively. This output growth underscores JDC’s strategy to enhance value-added product output amid robust domestic demand.

Mining Capacity Supports Growth Outlook

JDC operates two key mining assets — the Jinduicheng Mine (13.4mn t/yr capacity) and the Ruyang Donggou Mine (8.8mn t/yr). Together, these provide a stable ore supply, reinforcing JDC’s ability to scale alloy and powder production.

Nationally, China produced 306,000 tonnes of molybdenum concentrate in 2024, reflecting an 8.5% increase from the previous year. Ferro-molybdenum consumption in China grew 12%, reaching 190,000 tonnes, driven by downstream applications in construction and clean energy.

Strong Demand Expected in Steel, Energy, and Aerospace Sectors

JDC forecasts continued strong demand in 2025 due to the widespread use of molybdenum-containing steels. These materials are crucial in new energy systems, advanced materials, and aerospace engineering, aligning with China's industrial upgrade goals.

Meanwhile, tightening global supply and rising alloy-grade specifications may support firm molybdenum pricing throughout the year. JDC is likely to maintain output discipline while leveraging its vertically integrated structure to navigate future volatility.

The Metalnomist Commentary

JDC’s growth underscores China’s ability to secure domestic alloy production amid global uncertainty. As energy transition accelerates, materials like molybdenum will be strategic levers in the race for industrial dominance.

Molybdenum Production and Consumption See Steady Growth in Q3: IMOA Report

Molybdenum

Global molybdenum production and usage witnessed moderate year-on-year growth during the third quarter of 2023, according to the International Molybdenum Association (IMOA). Both supply and demand were up, reflecting steady demand for molybdenum in industries such as stainless steel production, chemical processing, and high-strength alloys.

Global Production: China and South America Lead

Global molybdenum output reached 162.4 million pounds (mn lbs) in Q3 2023, marking a 0.3% increase year on year and a 2% rise compared to Q2.

• China maintained its dominant position as the world’s largest producer, contributing 74.5 mn lbs, up 1% year on year.

• South America, the second-largest producer, recorded a significant 7% increase in output, reaching 46.4 mn lbs.

• In contrast, North American production dropped by 5%, totaling 27.3 mn lbs, while output from other regions declined sharply by 19%, settling at 14.2 mn lbs.

This geographical disparity underscores China's continued dominance in molybdenum production, as well as South America's growing importance in the supply chain.

Consumption: Rising Demand Across Key Regions

Global molybdenum consumption rose to 164.1 mn lbs in Q3 2023, reflecting a 3% year-on-year increase and a 2% quarter-on-quarter rise.

• China accounted for the highest demand, consuming 80.5 mn lbs, an 8% increase compared to the previous year. Its consumption outpaced domestic production, indicating strong industrial demand for molybdenum.

• Europe ranked second with a modest 1% rise in demand, reaching 28.5 mn lbs.

• In the United States, consumption edged up by 1% to 15.9 mn lbs, while the CIS region reported a 1% decline to 5.7 mn lbs.

• Japanese demand fell by 4%, landing at 11 mn lbs, while other regions experienced a 6% drop, consuming 22.5 mn lbs.

The increase in demand in major economies like China and Europe highlights molybdenum’s critical role in sectors such as steel alloys and energy infrastructure. However, declines in regions like Japan and the CIS suggest uneven recovery in global industrial activity.

Outlook

With China leading both production and consumption, and South America’s output on the rise, molybdenum continues to be a key player in global industrial applications. As demand for advanced alloys and renewable energy technologies grows, the market for molybdenum is expected to remain resilient, though regional variations in production and usage may persist.

China's CMOC Reports Decline in Molybdenum Output Amid Lower Ore Grades

China Molybdenum Co. (CMOC), a leading diversified metals producer, has reported a 12% drop in molybdenum output for the first half of 2024, citing lower metal grades in the ores mined. The Henan-based company produced 7,349 tons of molybdenum metal equivalent from January to June, down from the same period last year. Sales also saw a decline, dropping by 8.3% to 7,185 tons.

Despite the decrease in production, CMOC remains on track to meet its annual target of 12,000 to 15,000 tons, having achieved approximately 54% of this goal in the first half of the year. The company is optimistic about the second half, expecting demand to increase further, driven by new projects in the metallurgical and chemical industries.

China remains a dominant force in the global molybdenum market, producing 64,900 tons in the first half of the year, accounting for 44.5% of the global total. Consumption within the country reached 66,500 tons, representing 45.7% of global demand.

Chinese steelmakers, in particular, have shown a strong appetite for molybdenum, purchasing 72,652 tons of ferro-molybdenum between January and June—a 25% increase compared to the previous year. CMOC attributes this surge to the country’s push for high-quality industrial development, which has boosted the demand for molybdenum-containing steel.

With molybdenum output expected to continue declining due to lower ore grades, CMOC anticipates a supportive market environment for the remainder of the year.

Molybdenum Growth Forecast Adjusted Amid Automotive and Aerospace Challenges

the International Molybdenum Association (IMOA)

The projected global molybdenum usage growth over the next decade has been revised downward due to ongoing difficulties in the automotive and aerospace sectors, according to discussions at the International Molybdenum Association (IMOA) annual general meeting in Tokyo. While global automobile production is still expected to rise by 11% by 2033, the growth rate has fallen short of earlier expectations, hindered by supply chain issues and affordability concerns. In 2022, forecasts suggested that global automobile production could increase by as much as 30% over 2021-2031.

Similarly, the electric vehicle (EV) market, a significant molybdenum consumer, is expected to experience a slowdown in growth. Bloomberg New Energy Finance projects an average annual increase of 21% from 2024 to 2027, down from a 61% rise between 2020 and 2023. This shift, along with the ongoing transition from internal combustion engines to EVs, is likely to reduce long-term molybdenum consumption in the auto industry.

Aerospace and Renewable Energy Keep Demand Stable

Although the aerospace and defense sectors are anticipated to be strong drivers of molybdenum demand in the next decade, both Airbus and Boeing face persistent supply chain limitations that have constrained their output. Still, these companies predict that demand for wide-body jets will double over the next 20 years. In contrast, renewable energy, particularly wind power, is expected to fuel molybdenum demand in alloyed steels. The International Energy Agency (IEA) reported a 14% year-on-year increase in renewable electricity production in June 2024, with wind power seeing a 28.1% rise.

Despite these gains, mechanical engineering and construction sectors have dampened overall molybdenum demand due to high interest rates and China’s weakening property market. Investment in China’s real estate sector fell by 10.2% from the previous year, with new project start-ups dropping by 22.5%, underscoring steel demand challenges.

IMOA data revealed that global molybdenum consumption outpaced production in 2023, with consumption rising by 1% to 630 million pounds. China remained the largest consumer and producer of molybdenum, while output in South America declined in tandem with reduced copper production. North American production has remained largely unchanged.

Although supply is expected to grow with the expansion of production projects, the molybdenum market is forecast to remain tight throughout the next decade due to persistent demand, despite the lower-than-expected growth rate.

China’s Ferro-Molybdenum and Ferro-Vanadium Prices Remain Steady Amid Firm Demand

Ferro-Molybdenum

The Chinese noble alloys market has maintained stability in early 2025, with ferro-molybdenum (FeMo) and ferro-vanadium (FeV) prices holding firm due to consistent demand from steelmakers and steady raw material costs. Despite market uncertainties, domestic and export prices have largely remained unchanged since the end of December.

Ferro-Molybdenum Market Trends

Domestic prices for 60% grade ferro-molybdenum were assessed at 230,000-233,000 yuan per tonne (Yn/t) ($31,510-$31,921/t) ex-works, translating to Yn383-388 per kilogram (kg) of contained molybdenum. Export prices remained steady at $53-53.50/kg free on board (FOB) China.

• Steelmaker demand remains firm, with tenders closing at approximately Yn230,000/t on a delivery basis. However, January's total tender volume is expected to fall short of 10,000t, compared to 14,000t purchased in December.

• 45% grade concentrate prices were Yn3,590-3,620 per metric tonne unit (mtu) ex-works, while 57% grade roasted concentrate was assessed at Yn3,690-3,720/mtu ex-works, both unchanged from December 31 levels.

• A Jiangxi-based mining company finalized 45% grade concentrate sales at Yn3,595/mtu over the past two days.

With steady steel production supporting ferro-molybdenum demand, prices are expected to remain stable in the short term.

Ferro-Vanadium Market Holds Firm Despite Global Price Softness

The ferro-vanadium (50% grade) market remained stable at Yn81,000-83,000/t ex-works, supported by ongoing procurement from steelmakers and stable pentoxide flake costs.

• January procurement tenders were issued ahead of the Lunar New Year holiday, with major private-sector steelmaker Nanjing Iron and Steel yet to set its tender price.

• Alloy producers maintained offers between Yn82,000-83,000/t, as pentoxide flake costs remained firm. A Tianjin-based trader purchased 10t of FeV at Yn81,000/t ex-works on December 31.

• Pentoxide flake prices remained at Yn73,000-74,000/t ex-works, with major suppliers Sichuan Chuanwei, Sichuan Desheng, and Chengde Jianlong yet to announce January prices.

Despite stable domestic demand, export prices for 80% grade ferro-vanadium softened to $24.30-25/kg FOB China, down from $24.80-25.30/kg on December 31. This decline reflects weaker international demand and lower bids from overseas buyers.

Conclusion

With firm steel sector demand and stable feedstock costs, China’s ferro-molybdenum and ferro-vanadium markets are expected to remain steady in early 2025. While domestic demand holds firm, international ferro-vanadium prices face downward pressure, reflecting weaker global buying interest. The market's direction in the coming months will depend on steelmakers' procurement strategies and raw material cost fluctuations.

CMOC Molybdenum Output Declines Slightly in 2024

CMOC

CMOC, also known as Luoyang Luanchuan Molybdenum and China Molybdenum, a diversified metals producer based in Henan, China, has reported a slight decrease in molybdenum production for 2024. The company produced 15,396 tonnes of molybdenum metal equivalent, a 2% reduction compared to the previous year. This decline is attributed to lower grades of original ore.

Exceeding Annual Target

Despite the year-on-year decrease, CMOC's 2024 molybdenum output still surpassed its internal target range of 12,000-15,000 tonnes metal equivalent. The company did not provide any details regarding molybdenum sales figures.

China Expands Export Controls on Critical Minerals Amid Trade Tensions

China Critical Minerals

New Restrictions on Tungsten, Indium, and Other Critical Metals

China has intensified its trade strategies by imposing new export controls on additional critical minerals. This move is seen as a countermeasure against higher tariffs recently imposed by the United States. The newly restricted materials include various metals and compounds of tungsten, indium, tellurium, bismuth, and molybdenum. The export restrictions came into effect on February 4, as announced by China’s Ministry of Commerce.

Impact on Global Supply Chains

This expansion of export controls follows the introduction of similar measures in 2023-24, which included key materials such as gallium, germanium, graphite, and antimony. With the recent addition, the scope now covers more crucial metals used in various industries globally. According to industry estimates, China holds a dominant share of the global supply for metals like tungsten and bismuth. For instance, it is the world’s largest producer and exporter of tungsten, controlling nearly 80% of the global market. Similarly, China is responsible for 70-80% of the world's bismuth supply, which further underscores its influential role in the global supply chain.

The new export controls will allow China greater flexibility in deciding which countries can receive these critical minerals. Market participants have indicated that the export restrictions could drive up global prices, especially for tungsten and bismuth, due to China's near-monopoly on these materials. This is likely to cause disruptions for industries that rely heavily on these metals, from electronics to energy production.

Global Repercussions and Market Shifts

The broader implications of these controls may be felt across various sectors. As China continues to tighten its grip on critical mineral exports, consumers outside of China will face challenges in securing alternative sources of supply. However, some experts suggest that this move might spur increased investments in local production capabilities in non-China markets, as countries seek to reduce their dependence on Chinese supplies.

In the short term, global markets will likely experience higher prices for the affected minerals, particularly as exporters must follow a stringent verification process before shipping these critical materials. The procedural delays and uncertainty about permitted shipments will add to the volatility of the market.

Conclusion: Strategic Maneuver in Global Trade

China's latest export controls reflect a growing trend of resource nationalism, where nations leverage their dominance in critical industries to secure economic and political advantages. These measures come amidst heightened trade tensions, particularly with the United States, and are designed to protect China’s national security and economic interests. As the global demand for these minerals continues to rise, China’s role in the critical metals supply chain remains pivotal, making it essential for businesses worldwide to monitor these developments closely.

China’s Ferro-Molybdenum Prices Rise on Strong Steel Demand

Ferro-molybdenum

Ferro-molybdenum prices in China have surged in recent weeks, driven by increased demand and higher tender prices from steel producers. The rise comes as Chinese steelmakers scramble to meet molybdenum-containing steel orders, pushing up prices in a market already facing supply constraints.

Supply Struggles Amid Rising Demand

As steel mills in China ramped up their purchases, tender volumes for August were expected to reach around 10,000 tonnes, but actual purchases have surpassed expectations, totaling 12,000-13,000 tonnes so far. Steelmakers bought the alloy at prices ranging from 238,000 to 239,000 yuan per tonne, up by 2,000-3,000 yuan from the previous week.

At the same time, domestic alloy output fell by 10% in July compared to the previous month, according to the China Nonferrous Metals Industry Association (CNIA). The drop, attributed to squeezed profit margins and rising feedstock costs, has led many producers to cut or suspend production. Heavy rains in the Huludao and Chaoyang regions in Liaoning province also disrupted logistics, further tightening supply.

Mixed Outlook for Demand

Looking ahead, market participants are divided on the demand outlook. Some expect steel mills to continue stockpiling ferro-molybdenum ahead of China’s national holiday in early October, in preparation for increased post-summer steel demand. Others caution that mills may hold back on bulk purchases to avoid further price increases.

CMOC Raises Tungsten and Niobium Output in Q1 2025

CMOC Tungsten

CMOC Increases Strategic Metal Production Amid Strong Demand

Chinese diversified metals producer CMOC—also known as China Molybdenum or Luoyang Luanchuan Molybdenum—boosted tungsten and niobium output in the first quarter of 2025. This aligns with its broader production targets and strategy to solidify its role in global critical minerals supply chains.

CMOC reported 1,993 metric tonnes of tungsten metal equivalent during January–March, up by 3.8% year-on-year. This represents 27–31% of its full-year production target of 6,500–7,500 tonnes.

Niobium Output Also Gains Ground

In the same period, CMOC produced 2,616 metric tonnes of ferro-niobium, marking a 4.4% increase over Q1 2024 levels. This output accounted for 25–28% of the company’s 2025 goal of 9,500–10,500 tonnes of ferro-niobium.

CMOC is China’s second-largest tungsten concentrate producer after China Minmetals and remains a key player in niobium supply, an essential input in high-strength steel and superalloys.

The company’s diversified portfolio includes molybdenum, copper, cobalt, and phosphate fertilizers, all of which are critical to industrial and clean energy applications.

The Metalnomist Commentary

CMOC’s stable Q1 growth in tungsten and niobium suggests strategic alignment with China’s broader resource security policy. As global demand for aerospace, defense, and battery materials rises, producers like CMOC are ramping up output to secure market share and pricing leverage in 2025.

China’s Shenglong Increases Molybdenum Concentrate Auction Prices

China Molybdenum

Rising Costs Reflect Stronger Demand and Market Conditions

Chinese mining giant Luoyang Shenglong, also known as Luanchuan Longyu, has raised auction prices for molybdenum concentrate. The company sold 510 tons of 45% grade concentrate at 3,760-3,775 yuan/mtu ($23.95-24.04/lb), 60 tons of 47% grade concentrate at 3,780 yuan/mtu, and 240 tons of 50% grade concentrate at 3,775-3,795 yuan/mtu, marking an increase from the starting price of 3,690 yuan/mtu. This follows a previous sale on August 13, where 810 tons of similar-grade concentrate were sold at 3,640-3,660 yuan/mtu.

Shenglong, with a monthly production capacity of 1,500 tons for 47% grade concentrate, typically sells around 1,000 tons each month. Other major mining firms, such as Yichun Luming, have also reported rising prices for molybdenum concentrate. Domestic prices for 45% grade concentrate increased to 3,730-3,760 yuan/mtu, reflecting higher offers from mining companies and increased buying interest from steel producers.

The rise in prices is attributed to expected restocking activities by steel producers before the National Day holiday and increased alloy production costs. However, alloy transactions from steelmakers have yet to align with the increased costs.

Outokumpu Secures 10-Year Molybdenum Oxide Supply Deal from Greenland’s Malmbjerg Mine

Outokumpu

$1.6 Billion Offtake Agreement to Support EU Stainless Steel Production and Advance Arctic Mining Project

Outokumpu Moves to Secure Strategic Molybdenum Supply from Greenland

Outokumpu has signed a $1.6 billion, 10-year offtake deal to source molybdenum oxide (MoOx) from Greenland Resources' Malmbjerg project. The agreement ensures Finland-based Outokumpu receives 8 million pounds of MoOx annually, covering half of its global requirements. This volume represents 25% of the Malmbjerg mine’s projected output over the same period.

The long-term supply will directly support Outokumpu’s European stainless steel operations. Molybdenum enhances corrosion resistance in stainless alloys, making it essential for infrastructure, energy, and chemical industries.

Financing and Permitting: Malmbjerg Project Enters Key Development Phase

As part of the deal, Outokumpu will assist Greenland Resources in securing funding to move the $820 million mine into construction. While exact financing needs remain undisclosed, Export Development Canada issued a letter of interest for up to $275 million in February.

Greenland Resources still needs to obtain its final exploitation license before starting extraction. It received a draft permit earlier this year, and aims to unlock the mine’s full 20-year lifespan. The project contains 245 million tonnes of molybdenum disulfide ore at an average grade of 0.176%, expected to yield 571 million pounds of contained molybdenum.

Molybdenum Market Volatility Adds Urgency to Strategic Agreements

European prices for molybdenum oxide have dropped 14% since peaking in June 2024, with recent levels assessed at $20.65–$20.85/lb, according to SUPERMETALPRICE. This price volatility makes secure long-term sourcing vital for downstream users like Outokumpu.

The Malmbjerg project is one of the most advanced Arctic mining developments, and this deal underscores the EU’s growing interest in diversifying critical raw material supplies away from dominant producers like China and Chile.

India Noble Alloys Prices Remain Stable Amid Domestic Market Challenges

Alloys

Ferro-Molybdenum and Ferro-Vanadium Prices Hold Steady, But Market Sentiment Remains Weak

In India, prices for ferro-molybdenum and ferro-vanadium remained steady in early February 2025. However, the overall sentiment in the domestic ferro-molybdenum market is notably bearish, driven by a weaker Indian rupee. Meanwhile, the limited demand for stainless steel is restricting activity in the ferro-vanadium market.

Stable Prices for Ferro-Molybdenum Amid Weak Sentiment

The price of ferro-molybdenum in the domestic Indian market is holding steady at Rs2,530-2,550 per kilogram ($28.89-29.12 per kilogram) ex-works. Similarly, molybdenum oxide prices have remained unchanged at Rs2,420-2,450 per kilogram, according to recent assessments. Despite this price stability, market sentiment remains low, primarily due to the weak Indian rupee, which has made imported oxide more expensive.

A producer spoke with The Metalnomist and noted that there is no significant excitement in the molybdenum market. The lack of enthusiasm can be attributed to the fiscal year 2025-26 budget announcement and the delays in the shipbuilding industry’s setup, which has further dampened market expectations.

Ferro-Vanadium Prices Stable, But Stainless Steel Demand Remains Low

The price for ferro-vanadium in India stands at Rs1,090-1,100 per kilogram. This market also remains largely stable, although it has seen fewer transactions due to limited stainless steel demand. As a result, the market has become quieter, with little price movement.

However, analysts expect the market to gain more clarity following the Chinese Lunar New Year holiday. It is anticipated that the resumption of industrial activities in China could provide a clearer picture of the price trend and demand in the coming months.

Chinese Firms Intensify Investments in Cu-Co Mining in the Democratic Republic of Congo

In a strategic maneuver to secure a steady supply of crucial resources, Chinese enterprises are significantly amplifying their investments in the copper-cobalt reserves of the Democratic Republic of Congo (DRC). This initiative addresses China's limited cobalt resources and the enduringly strong copper market.

Leading the charge are prominent entities such as diversified metals producer CMOC, China Railways Resources, China Nonferrous Metal Mining, Norin Mining, Excellent Mining, and Huayou Cobalt. According to data compiled by Metalnomist, the DRC produced approximately 167,000 metric tons of cobalt feedstock in 2023, with Chinese mining companies contributing around 59% of this total output. Presently, Chinese investments account for over 62% of the DRC’s total cobalt reserves, a remarkable increase from roughly 25% in 2016. This proportion is anticipated to expand further following Norin Mining's acquisition of Dubai-based Chemaf Resources (CRL).

China’s dependency on imported cobalt, which constitutes nearly 99% of its primary feedstock, has propelled these extensive investments. The DRC remains the foremost supplier of cobalt feedstock to China, accounting for 84% of China's total imports in 2023, trailed by Indonesia (10%), Papua New Guinea (1.6%), and New Caledonia (1.5%).

This domestic resource shortfall has driven Chinese mining firms to intensify their investments in the DRC’s copper and cobalt assets over recent years. CMOC, a global titan in mining cobalt, copper, tungsten, molybdenum, and niobium with operations spanning China, the DRC, Australia, and Brazil, acquired a 56% stake in the Tenke Fungurume copper-cobalt mine (TFM) from US-based Freeport-McMoRan in 2016, later increasing its stake to 80% in 2017. Additionally, CMOC finalized its acquisition of the Kisanfu copper-cobalt mine (KFM) in December 2020.

With copper prices maintaining an upward trajectory since early this year, achieving new heights on the Shanghai Futures Exchange (SHFE) and London Metals Exchange (LME) in mid-May, mining firms have been further incentivized to augment their investments in the DRC’s copper-cobalt mines.

Norin Mining's acquisition of CRL, which controls two copper-cobalt mines in the DRC, underscores this trend. Norin Mining Kingco, a wholly-owned subsidiary of Norin Mining, has entered into a share purchase agreement with CRL’s parent company Chemaf to acquire all of Chemaf's shares in CRL. The financial details of the transaction remain undisclosed, yet CRL anticipates completing the deal in the fourth quarter of 2024.

Nevertheless, the state mining company Gecamines has expressed opposition to the sale of Chemaf Resources, potentially delaying the acquisition process. A source familiar with the matter noted, "The acquisition is expected to be delayed for a while because of Gecamines' opposition, but it will probably be resolved later without significantly impacting the acquisition."

Chemaf SA is progressing with the expansion of the Etoile mine (Etoile phase 2) to process mixed and sulphide ore, alongside developing a new Mutoshi mine. Both projects, in advanced stages of development, have the potential to collectively produce over 75,000 metric tons of copper and 20,000 metric tons of cobalt hydroxide annually. These new ventures are expected to commence production in 2025, post-acquisition.

Magnesium Added to Greenland Resources License for Malmberg Project

Greenland Resources

Greenland Resources has confirmed that magnesium will be included in its draft exploration license for the Malmberg project in east-central Greenland. The updated scope expands the project’s strategic value beyond molybdenum, as the magnesium Greenland Resources license now aligns with critical mineral priorities in both the US and EU, where domestic magnesium production is absent.

The Greenland government verified magnesium’s presence in the Malmberg deposit, prompting regulators to recommend formal inclusion. The magnesium will be recovered as a byproduct of molybdenum extraction and may also be recovered from saline tailings water, according to Greenland Resources. This multi-source extraction strategy enhances the site’s economic and critical materials relevance.

Dual Critical Mineral Strategy Enhances Malmberg Project Value

The expanded magnesium Greenland Resources license adds new momentum to the Malmberg project, which is already positioned as a high-grade molybdenum source. In February 2025, Greenland Resources signed a 10-year, $1.6 billion offtake deal with Outokumpu, a Finland-based stainless steel producer, for molybdenum oxide. The addition of magnesium strengthens the project’s appeal to industrial buyers facing supply shortfalls.

Magnesium is widely used in lightweight alloys, defense applications, and battery systems, making it a key focus for strategic sourcing. The company’s plan to extract magnesium from both ore and tailings brine also reflects a growing industry trend toward zero-waste and water-integrated metallurgy.

US and EU Magnesium Dependence Highlights Strategic Importance

Neither the United States nor the European Union currently hosts domestic magnesium production, despite listing the metal as a critical raw material. The magnesium Greenland Resources license positions Greenland as a potential supplier to Western markets seeking non-Chinese sources of magnesium.

As supply chain resilience becomes central to industrial policy, Greenland’s geostrategic location and mineral endowment could play a more prominent role in EU and US critical mineral strategies. With permitting underway and magnesium officially recognized, Greenland Resources gains leverage in future financing, offtake, and export agreements.

The Metalnomist Commentary

Adding magnesium to the Greenland Resources license broadens the Malmberg project’s relevance in critical mineral geopolitics. In a supply environment dominated by China, even byproduct recovery from molybdenum mining becomes a strategic lever for Western industrial resilience.

GEM Expands Critical Mineral Recycling to Strengthen China’s Supply Chain Independence

GEM

High-Purity Germanium and Tungsten Recycling to Double by 2027

Chinese battery materials producer GEM is expanding its critical mineral recycling capacity to support China’s supply chain independence. In its 2024 annual report, GEM announced significant investments in germanium recycling and high-purity refining, driven by Beijing’s resource localization strategy. The company aims to rapidly scale its recycling of gallium, indium, and scandium, all of which are subject to China’s recent export restrictions.

Strategic Metals and Battery Materials Drive Growth

GEM will also broaden recycling operations for minor metals such as molybdenum, tantalum, and niobium. These materials are essential for defense and electronics manufacturing. The company currently recycles over 20 metals from waste batteries, electronics, vehicles, and plastics across its eight Chinese plants and international sites in South Korea, South Africa, and Indonesia.

Doubling Output of Tungsten and Platinum Group Metals

To support industrial demand, GEM plans to double its output of tungsten powder and electronic metals to 20 tonnes by 2027. Tungsten’s high conductivity and melting point make it ideal for semiconductors and photovoltaic thin-film cells. In addition, GEM will build a demonstration plant for platinum, palladium, and rhodium refining, targeting similar output growth by 2027.

Core Battery Material Output Set for 46% Growth in 2025

The company expects a strong rise in core product output—nickel, ternary precursors, cobalt, cathode materials, and recycled batteries—with a projected 46% increase in 2025. From 2025 to 2027, the annual growth rate is forecast to moderate to 36%, still reflecting robust demand for EV and energy storage materials.

The Metalnomist Commentary

GEM’s expansion underscores China’s push for mineral sovereignty in a geopolitically constrained environment. By scaling critical mineral recycling, GEM reduces import dependence while reinforcing its leadership in the global circular economy for strategic metals.

Rhenium Deficit Persists, Boosting Recycling Prospects

Rhenium Recycling

Rhenium, a rare metal critical for aerospace, medical, and catalyst applications, is facing a growing supply deficit, driving prices to new highs. As demand continues to surge, particularly from the aerospace and medical sectors, the need for rhenium is expected to increase further, creating a shortage that could significantly impact long-term contracts and stockpiles. The rising costs and limited supply of primary rhenium have prompted a renewed focus on recycling, with many buyers turning to secondary sources to secure supplies.

Strong Demand Drives Price Surge

Over the past few months, rhenium prices have seen a sharp rise, with strong demand from aerospace and medical applications leading the charge. From late June to early September 2024, prices surged in major markets including the U.S., Europe, and China. Although prices have stabilized recently, consumers, especially in the aerospace sector, are becoming more concerned with availability rather than the spot price. Rhenium producers have reported depleted stockpiles, exacerbating the ongoing supply squeeze.

A major contributing factor to the shortage has been the dramatic increase in Chinese rhenium imports, with China importing over 26 tons of rhenium from Chile in 2023—about one-third of the world’s annual output. This surge is linked to China’s efforts to boost its aviation engine technology and reduce dependence on foreign suppliers for both civil and military aircraft.

Medical Sector Adds to Growing Demand

Rhenium’s role in medical implants has also become a significant driver of demand. The U.S. Food and Drug Administration (FDA) approved the use of the molybdenum-rhenium (Mo-50Re) alloy in medical implants in August 2024, marking a breakthrough that could replace cobalt-chromium and titanium-based materials in various implants. The medical sector’s rhenium demand is expected to range from 10 to 20 tons over the next two years, further tightening the already constrained supply. While the medical market in China remains uncertain, the country’s growing consumption in this field could add pressure to global supply chains.

Supply Constraints and the Need for Recycling

Rhenium’s supply is highly inelastic, meaning it cannot quickly adjust to changes in demand. The metal is primarily extracted as a by-product of copper and molybdenum sulphide concentrates, and its production process is complex and costly. As a result, it is difficult to ramp up production quickly in response to spikes in demand, and with long-term contracts already accounting for most of the world’s rhenium output, spot sales are limited.

With limited primary supply available, many consumers in the aerospace and medical sectors are now turning to secondary materials. Rhenium recycling has emerged as a viable solution in an environment of rising prices. According to James Peer, director of Maritime House, recycling serves as a natural hedge in a market with an unreliable primary supply. Dandy Roh, CEO of DongASpecialMetal, also confirmed that with prices on the rise, recycling is becoming increasingly attractive.

The U.S. Geological Survey (USGS) reported that approximately 25,000 kg of secondary rhenium was produced worldwide in 2023, reflecting growing interest in recycled material. However, despite the potential for recycling to ease supply pressures, there is no direct substitute for rhenium in many of its critical applications, particularly in superalloys and catalysts. This lack of alternatives compounds the challenges posed by the supply crunch.

Future Outlook: Higher Prices and Potential Substitutes

Given the continued supply constraints, rhenium prices are expected to rise further. However, prices would need to increase significantly before end-users consider switching to substitute materials. While alternatives such as gallium, germanium, and indium are being evaluated for use in rhenium catalysts, they are not yet seen as viable substitutes in superalloys. Consequently, the increasing demand for rhenium across various sectors suggests that the metal’s value will continue to rise, reinforcing the case for recycling as a key strategy to mitigate supply risks.

As rhenium prices continue to climb, recycling will likely play an essential role in meeting the growing demand, providing a necessary hedge for industries dependent on this critical metal.

Titanium Exempted from US Tariffs: Aerospace Industry Impact Remains Unclear

Titanium

New US Tariff Exemptions for Titanium Could Affect the Aerospace Supply Chain

On April 2, 2025, US President Donald Trump announced new tariffs on several foreign imports, including an exemption for titanium, titanium scrap, and ferro-titanium. While the exemption helps protect titanium trade, the broader implications for the aerospace industry remain uncertain.

Titanium Exemption and Its Effects

The US tariffs announced include a list of exemptions, with titanium in its various forms being spared. However, other metals like hafnium, molybdenum, vanadium, nickel scrap, and aluminum scrap were not exempted. The new tariff scheme does not affect pre-existing duties on Chinese titanium products, including a 20% duty on titanium products from China, which has been in place since March 4, 2025. Despite the exemption for certain forms of titanium, Chinese titanium sponge imports will still be subject to a 60% duty, which remains unchanged.

Additionally, imports of unwrought titanium from Japan, Kazakhstan, and Saudi Arabia will still face a 15% tariff, though efforts to remove this tariff for sponge imports are underway. For US titanium scrap imports, particularly from the EU and UK, which make up over half of the US intake, the tariff exemption is crucial. Without it, US scrap dealers, processors, and consumers would face substantial challenges, as the US does not produce enough vacuum-grade titanium scrap domestically to meet demand.

Aerospace Industry and Supply Chain Impact

While the titanium exemption provides relief for many manufacturers, the broader impact of the tariffs on the aerospace industry is still unclear. Aerospace manufacturers are uncertain about the tariff's effects on finished parts, components, and engines, particularly regarding supply chains that involve cross-border production of engine parts like the Leap-1A and Leap-1B engines for the A320neo and Boeing 737 Max.

Canada and Mexico were excluded from the new US tariffs, alleviating concerns for companies like Bombardier, Airbus, RTX, and Heroux-Devtek, which operate in those regions. Still, some titanium producers believe the situation could change rapidly, as it is difficult to define the boundaries between parts made from titanium and assembled components that use other materials, such as nickel-based alloys or aluminum.

China’s 34% Tariff on US Exports

In response to US tariffs, China has imposed a 34% tariff on all US imports, which will affect titanium imports from the US. Despite importing limited amounts of titanium from the US, China still relies on US imports for critical aerospace components, including parts for its C919 aircraft. The C919 uses the CFM Leap-1C engine, which is assembled in both the US and France.

China's CMOC Reports Higher 1H Tungsten and Niobium Output

Chinese diversified minerals producer CMOC, also known as Luoyang Luanchuan Molybdenum, recorded a significant increase in tungsten and niobium production in the first half of the year compared to the same period last year.

The company produced 4,020 tons of metal equivalent tungsten between January and June, up from 3,813 tons a year earlier. This increase is attributed to a higher recycling rate of hard-to-process ores, according to the firm.

CMOC sold 3,994 tons of metal equivalent tungsten in the first half of the year, marking a 12% increase year-on-year.

In addition, the company produced 5,082 tons and sold 5,178 tons of metal equivalent ferro-niobium in the same period, representing year-on-year increases of 8% and 12%, respectively.

CMOC is the second-largest tungsten concentrate producer in China, following China Minmetals, and it also engages in the production and trading of molybdenum, copper, cobalt, and phosphate fertilizer.

Royal Gold Ecuador Copper Investment of $200 Million Targets Warintza Project

Royal Gold Ecuador copper

Royal Gold Ecuador copper investment reached $200 million as the US metals investment firm's subsidiary RGLD Gold partnered with Canadian miner Solaris Resources for the Warintza copper-gold-molybdenum project. The substantial Royal Gold Ecuador copper investment secures net smelter royalty agreements and gold purchase arrangements for a project containing 1.1 billion tonnes of measured and indicated resources at 0.48% copper equivalent grade, positioning Royal Gold strategically within Ecuador's emerging copper mining sector.

Structured Payment Schedule Aligns with Project Milestones

Royal Gold Ecuador copper investment follows a phased approach with $200 million distributed across three installments tied to development milestones. RGLD Gold will pay $100 million upon closing, $50 million after environmental impact assessment approval and pre-feasibility study publication, and the final $50 million one year after initial closing. This milestone-based structure reduces investment risk while ensuring adequate project funding for critical development phases.

Meanwhile, the investment secures comprehensive royalty agreements covering all metals produced from the Warintza project including copper, gold, and molybdenum. The gold purchase agreement provides Royal Gold additional revenue streams beyond traditional royalty structures. These arrangements create diversified income sources while maintaining exposure to multiple commodity price cycles across the project's operational lifespan.

Royal Gold Ecuador Copper Project

Warintza Project Resources Support Long-Term Production Potential

However, the Warintza project's substantial resource base of 1.1 billion tonnes at 0.48% copper equivalent grade demonstrates significant scale for potential mining operations. The multi-metal deposit includes copper, gold, and molybdenum mineralization that enhances project economics through commodity diversification. Ecuador's copper mining sector attracts increasing international investment as global copper demand accelerates through energy transition requirements.

Therefore, Royal Gold's investment follows China's Zijin Mining $130 million investment for a 15% stake in Solaris completed in January 2024. The sequential major investments validate Warintza's commercial potential while providing Solaris adequate funding for project advancement. International investor interest demonstrates confidence in Ecuador's mining jurisdiction and the project's technical merits.

Strategic Positioning in Growing South American Copper Market

Furthermore, the Warintza investment positions Royal Gold advantageously within South America's expanding copper production base as global demand accelerates. Ecuador represents an emerging copper jurisdiction with substantial unexplored potential and improving regulatory frameworks for mining development. The country's strategic location provides efficient access to Asian and North American copper markets.

As a result, Royal Gold's streaming and royalty model creates exposure to Warintza's production potential without direct operational responsibilities or capital expenditure requirements beyond the initial investment. This approach enables participation in copper market growth while maintaining diversified portfolio exposure across multiple projects and jurisdictions. The investment strategy aligns with Royal Gold's established business model of financing mining development through royalty arrangements.

The Metalnomist Commentary

Royal Gold's $200 million Warintza investment exemplifies how precious metals streaming companies expand into base metals opportunities, leveraging their financing capabilities to secure royalty positions in high-quality copper projects amid accelerating global demand. The milestone-based payment structure demonstrates sophisticated risk management while Ecuador's emergence as a copper jurisdiction attracts major international investors seeking exposure to South American copper resources essential for global energy transition requirements.