What Makes Molybdenum Critical to National Security?
Molybdenum, nicknamed "moly" by metallurgists, quietly serves as a linchpin of American military capability despite not grabbing headlines like rare earth elements or lithium. When China added molybdenum to its export-controlled minerals list in February 2025, it sent shockwaves through defense planning circles in Washington, highlighting this unassuming metal's strategic importance.
As a refractory metal with an extremely high melting point of 2,623°C (4,753°F), molybdenum possesses exceptional properties that make it irreplaceable in military applications. When added in small amounts to steel or superalloys, it dramatically strengthens and hardens them, providing exceptional toughness, heat resistance, and corrosion protection—all critical factors for military hardware operating in extreme conditions.
According to the U.S. Geological Survey, "there is little substitution for molybdenum in its major application in steels," underscoring its strategic importance in defense manufacturing. While elements like tungsten, chromium, vanadium, and titanium can partially replace molybdenum in some applications, none replicates its unique combination of benefits at comparable costs and performance levels.
"Every DoD system is reliant on minerals like molybdenum, and supply chain disruptions can shut down production lines." — Pentagon official testimony to Congress, March 2025
The U.S. Defense Logistics Agency defines molybdenum as "primarily used as an alloying agent in steel, cast iron and nickel-based superalloys to boost hardenability, strength, and corrosion resistance." This description barely captures the metal's vital role in everything from armor plating to jet engine components.
During the Cold War, both the U.S. and Soviet Union quietly stockpiled molybdenum for its military utility, recognizing its irreplaceable role in advanced weapons systems. Today, however, the U.S. government holds no national stockpile of the metal—a vulnerability that has received increasing scrutiny as supply chain vulnerabilities tighten and geopolitical tensions rise.
How Does Molybdenum Strengthen U.S. Military Systems?
Armor Plating Applications
High-strength alloy steels containing molybdenum form the armor of tanks and heavy vehicles, providing the hardness and toughness needed to stop projectiles without shattering. The steel plating on an Abrams battle tank, for instance, owes part of its resilience to a small percentage of molybdenum (typically 0.5-3%) that dramatically enhances its protective capabilities.
Modern armor plate must balance competing demands—it needs to be hard enough to defeat incoming rounds but tough enough not to crack upon impact. Molybdenum helps achieve this delicate balance, allowing for armor that can withstand multiple hits while remaining structurally sound.
Aerospace and Propulsion Systems
The F-35 stealth fighter contains approximately 500 pounds of specialty alloys in its engine and airframe, many fortified with molybdenum. These alloys must perform reliably under extreme conditions, including temperatures exceeding 1,000°C in combat situations.
Turbine blades in a jet engine's hot section may contain 2-6% molybdenum to prevent softening at high heat—a critical factor determining whether an engine operates reliably under combat conditions. Without these molybdenum-enhanced superalloys, modern military aircraft would face significantly reduced performance envelopes and higher failure rates.
Nuclear Applications
Naval nuclear propulsion systems rely heavily on molybdenum-containing alloys for their exceptional stability under radiation and heat. Components in nuclear reactors—from control rods to structural supports—use molybdenum to resist corrosion and avoid weakening over long periods of neutron bombardment.
The U.S. Navy's nuclear submarine fleet, which forms a critical component of America's strategic deterrent, depends on these specialized alloys to maintain operational readiness during extended deployments. Molybdenum's contribution to these systems remains largely classified but is widely understood to be essential.
Missile Systems and Electronics
Molybdenum plays a vital role in missile components and advanced electronics. Its high melting point and ability to form durable compounds make it valuable in missile guidance systems, specialized wiring, and heat shields for hypersonic weapons.
Molybdenum disulfide serves as an excellent solid lubricant in aerospace applications where conventional oils would fail. This compound helps ensure that critical mechanical components in missiles and aircraft operate smoothly even under extreme conditions of temperature, pressure, and G-forces.
Why Is China's Export Control Concerning?
China's February 2025 decision to require special licenses for molybdenum exports represents a calculated geopolitical move with far-reaching implications. As the world's largest producer—mining approximately 110,000 metric tons in 2024 (over one-third of global output)—China's control over the molybdenum supply chain gives it significant leverage over Western defense manufacturing.
Under the new regulations, Chinese exporters must apply for special government permission to ship dozens of forms of molybdenum, from concentrates and powders to finished alloy products. While falling short of an outright ban, these targeted restrictions aim to prevent the most strategic grades of material from leaving the country.
"Industries dependent on these metals, including defense, [renewable] energy, electronics, and manufacturing, may experience supply chain disruptions, including delays, price increases, and bottlenecks." — Melissa "Mel" Sanderson, Critical Minerals Institute (CMI) Co-chair
China's Ministry of Commerce officially framed these export controls as necessary to "safeguard national security interests," but the timing—amid rising tensions over Taiwan and trade disputes—suggests broader strategic objectives. Molybdenum prices on international markets jumped 22% in the two weeks following Beijing's announcement, reflecting fears of a tightening supply.
This isn't China's first strategic mineral restriction. Beijing has systematically expanded export controls on critical materials over recent years:
- December 2024: Banned shipments of gallium and germanium to the United States
- April 2025: Placed certain rare-earth magnet alloys under export control
- February 2025: Imposed new licensing rules on tungsten, tellurium, bismuth, indium, and molybdenum
The pattern suggests a deliberate strategy to leverage China's dominant position in critical mineral markets as geopolitical tensions rise. By controlling molybdenum exports, China gains potential influence over everything from F-35 production rates to next-generation naval vessel construction timelines.
How Vulnerable Is the U.S. Supply Chain?
The United States maintains some domestic molybdenum production capacity, with mines in Colorado (Henderson and Climax), Utah (Bingham Canyon), and Arizona (Sierrita and Bagdad) producing approximately 33,000 tons in 2024, about 13% of global output. The U.S. and China are the only two countries that mine molybdenum both as a primary product and as a byproduct of copper mining.
However, American industry still relies heavily on imported molybdenum in various forms. Between 2020 and 2023, the U.S. imported significant quantities from Peru (35% of imports), Chile (34%), Mexico (10%), and Canada (8%). This global interdependence means that Chinese export restrictions can indirectly impact U.S. supplies by tightening the overall market.
"It is more urgent than ever to build capability and resilience in supply chains for critical minerals." — Defense Department official testimony to Senate Armed Services Committee, May 2025
The vulnerability is compounded by the fact that the U.S. National Defense Stockpile currently holds no molybdenum reserves—a point that has drawn scrutiny in recent congressional hearings. Pentagon officials have acknowledged that "every DoD system is reliant on minerals" like molybdenum, and supply chain vulnerabilities can "shut down production lines."
Historical precedent provides cause for concern. In 2021–22, global shortages of titanium (much of it sourced from Russia and China) forced some U.S. aerospace suppliers to slow deliveries, impacting military readiness. A similar scenario with molybdenum could have even broader implications given its use across multiple defense platforms.
Another vulnerability lies in processing capability. While the U.S. mines molybdenum ore, domestic capacity to process it into high-purity forms needed for aerospace and defense applications remains limited. Many American manufacturers rely on processed molybdenum products from global supply chains that China could indirectly influence.
What Steps Is the U.S. Taking to Secure Supply?
Washington has begun responding to these vulnerabilities through several initiatives aimed at creating a more resilient supply chain for molybdenum and other critical minerals:
1. Domestic Production Incentives
Using the Defense Production Act and other authorities, federal funds have been allocated to revitalize domestic mining and refining projects. In March 2025, the Pentagon announced $87 million in funding specifically targeting molybdenum production capacity, focused on expanding existing operations and reopening shuttered mines.
2. Strategic Partnerships
The U.S. has intensified "ally-shoring" efforts for critical mineral supply chains with friendly nations. Recent agreements with Canada, Australia, and Chile include specific provisions for molybdenum cooperation, including preferential trade terms and joint investment in processing facilities.
3. Industry Revitalization
In 2024, Centerra Gold Inc. announced plans to reopen the Thompson Creek molybdenum mine in Idaho—once one of the world's top sources—with operations expected to restart by 2027. The company is also developing a processing facility in Pennsylvania to refine molybdenum ore domestically, addressing a critical gap in the supply chain.
4. Supply Chain Resilience
Defense officials are advocating for a comprehensive approach that includes stockpiling, new mining operations, processing plants, and recycling capabilities. A Government Accountability Office report noted that stockpiling is "a band-aid… rather than a long-term solution," emphasizing the need for structural changes to mineral supply chains.
Despite these efforts, building a resilient supply chain will take years, and time may not be on America's side. The combination of increasing defense material demands due to global conflicts and China's critical minerals strategy creates a challenging environment for U.S. security planners.
"We're in a race against time. Building mines takes years, not months. Meanwhile, our adversaries are moving quickly to consolidate control." — Adam Burstein, Pentagon's point man for critical minerals
The Department of Defense has established a Critical Minerals Task Force to coordinate these efforts, with molybdenum listed among the top five priority elements. However, industry observers note that regulatory hurdles, capital constraints, and environmental concerns continue to slow domestic production growth.
Who Are the Top 10 Global Molybdenum Producers?
10. Teck Resources Limited (TSX: TECK.A | TSX: TECK.B | NYSE: TECK)
Teck Resources represents Canada's polymetallic strength in the global molybdenum market. Its Highland Valley Copper operation in British Columbia produces molybdenum concentrate as a byproduct, while the company also owns a 22.5% interest in Peru's Antamina mine—one of the world's top molybdenum producers.
What distinguishes Teck is its vertical integration. In 2021, the company formed a dedicated Molybdenum Business Unit overseeing operations at the past-producing Endako and Thompson Creek mines, along with the Langeloth metallurgical facility in Pennsylvania. This facility is particularly valuable as one of the few roasting plants in North America capable of refining molybdenum oxide to aerospace-grade specifications.
Under CEO Jonathan Price, Teck has reaffirmed its commitment to critical minerals, doubling down on copper and molybdenum while divesting its steelmaking coal business. The company's Langeloth facility has previously supplied high-purity molybdenum products to U.S. defense contractors, offering rare security of supply for sectors requiring uninterrupted material flow.
9. Lundin Mining Corp. (TSX: LUN | NASDAQ Stockholm: LUMI)
Lundin Mining has established a significant molybdenum footprint through its Chilean operations. The company's 51% stake in the Caserones mine, acquired in 2023, yields between 2,500 and 3,000 tonnes of molybdenum annually—among the highest outputs for a non-Chinese asset. Its Candelaria copper operation also produces molybdenum as a byproduct.
CEO Peter Rockandel has accelerated Lundin's pivot toward "strategic copper and critical byproducts," emphasizing molybdenum's growing importance in future-focused industries. "It's not about chasing buzzwords," Rockandel noted in a recent investor call, "it's about producing what the future actually needs—and molybdenum is part of that future."
While the company faces political and operational challenges in Chile—including environmental permitting issues and water use conflicts—its calculated approach to molybdenum production positions it well in an increasingly constrained global market.
8. Harmony Gold Mining Company Limited (NYSE: HMY)
Though primarily known for its South African gold operations, Harmony Gold has established a strategic position in molybdenum through its co-ownership of the Wafi-Golpu project in Papua New Guinea. This deposit contains over 47 million pounds of molybdenum in measured and indicated resources—representing significant future production potential.
In 2022, Harmony made a notable advancement by completing Australia's first molybdenum recovery plant at its Cadia Valley Operations in New South Wales, in collaboration with its then-partner Newcrest. The facility produces approximately 1,400 tonnes of molybdenum concentrate annually—a modest but symbolically important contribution to Western supply security.
Under CEO Beyers Nel, Harmony has emphasized the "co-product value" of molybdenum in its diversified portfolio. However, the company faces regulatory challenges in Papua New Guinea, where the Wafi-Golpu project has encountered permitting delays and negotiations over royalties and environmental oversight.
7. Antofagasta PLC (LSE: ANTO)
Chile's copper champion Antofagasta has developed a significant molybdenum operation as a byproduct of its flagship Los Pelambres and Centinela copper mines. In 2022, the company produced over 11,400 tonnes of molybdenum, placing it among the top five producers outside China.
CEO Iván Arriagada has adopted a disciplined expansion approach, emphasizing operational efficiency while embracing "future-facing" metals. The company has made consistent investments in its molybdenum recovery circuits, transforming what was once a metallurgical nuisance into a strategically valuable revenue stream.
Antofagasta faces ongoing challenges related to water scarcity, Indigenous land rights, and political volatility in Chile. Environmental permitting at Los Pelambres has faced scrutiny from both local communities and shifting political coalitions in Santiago. Nevertheless, the company's molybdenum output provides Western industries with one of the most reliable alternatives to Chinese-controlled supply.
6. Anglo American PLC (LSE: AAL)
Anglo American maintains a substantial molybdenum presence through its ownership of the Los Bronces mine in Chile and a 44% stake in the Collahuasi joint venture. While primarily copper-focused, these operations yield significant molybdenum byproduct—Collahuasi alone produces tens of millions of pounds annually.
Despite rarely highlighting its molybdenum output in investor communications, Anglo American's production contributes significantly to global alloy supply chains that ultimately feed Western defense systems. CEO Duncan Wanblad has emphasized "future-enabling" commodities, with molybdenum fitting squarely into that strategy—particularly as NATO nations accelerate rearmament timelines and infrastructure spending.
The company's long-term capital approach and established social license have helped it navigate challenges that would derail less entrenched operators, though political unrest in Chile remains an ongoing risk factor.
5. Glencore PLC (LSE: GLEN | JSE: GLN)
With a market capitalization exceeding £50 billion, Glencore exerts multifaceted influence over the global molybdenum market through both production and trading activities. The Swiss-based conglomerate holds strategic stakes in two major molybdenum producers: the Antamina and Collahuasi mines in Peru and Chile, which together represent nearly 15% of global molybdenum production.
What distinguishes Glencore is its market-making capability. Through its global trading arm—with warehousing, shipping, and hedging operations—Glencore often functions as buyer, seller, and price setter in molybdenum markets. This creates significant asymmetry during periods of geopolitical instability, when molybdenum spot prices can spike due to sanctions or trade disruptions.
Under CEO Gary Nagle, Glencore maintains a profit-driven approach that avoids publicity—including around its molybdenum activities. Nevertheless, its influence over molybdenum flows is substantial, raising questions about private control over strategic materials as Western governments race to secure [critical minerals executive order](https://discoveryalert.
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