Greenland Resources Inc. has signed a memorandum of understanding (MOU) for long term molybdenum supply with Düsseldorf based company Hempel Metallurgical GmbH, a major supplier of molybdenum to the German steel industry.
The MOU sets the path for a supply agreement of Molybdenite concentrate as well as secondary products like Ferromolybdenum and Molybdenum Oxide. The partnership focuses on supplying high quality low emissions molybdenum from Greenland to the German steel industry with roasting in Belgium. According to the International Molybdenum Association, in 2024 Germany used 16.3 million pounds of molybdenum making it the major molybdenum user in the European Union followed by Italy and Finland. More than 80% of the metallic materials (including carbon and stainless steels) to be used for defence applications require molybdenum alloying. Germany expects to increase defence expenditures from current 1.5% to around 5% of GDP. Primary molybdenum is produced in China (87%) and the USA (13%).