How Greenland Resources plans to supply 25% of EU molybdenum demand through its new German steel partnership

Greenland Resources Inc. (NEO: MOLY, FSE: M0LY) has signed a key memorandum of understanding with Düsseldorf-based Hempel Metallurgical GmbH, paving the way for long-term molybdenum supply to the German steel industry. The Canadian mining developer, which owns the Malmbjerg primary molybdenum project in Greenland, stated that the deal positions it to become the largest supplier of molybdenum to Germany, with future offtake agreements already underway with major European steelmakers.

The announcement builds on the feasibility work and prior roasting agreements already secured by Greenland Resources, marking another step toward its strategic goal of reshoring molybdenum supply chains into Europe’s industrial core.

What are the terms of the Greenland–Hempel molybdenum agreement and how will supply be structured?

Under the newly signed MOU, Greenland Resources and Hempel will collaborate on the supply of both Molybdenite concentrate and secondary products including Ferromolybdenum and Molybdenum Oxide. The concentrate will be roasted in Belgium, ensuring low-emissions processing aligned with EU decarbonization goals. While exact volumes were not disclosed, the scope of the agreement aligns with Greenland Resources’ aim of supplying up to 25% of the European Union’s annual molybdenum consumption through the Malmbjerg project.

The German steel industry represents a core target for Greenland Resources, given Germany’s status as the largest consumer of molybdenum in the EU. According to the International Molybdenum Association, Germany accounted for 16.3 million pounds of molybdenum usage in 2024, followed by Italy and Finland—two countries where the Canadian developer has also secured preliminary offtake discussions.

Why is the EU prioritizing molybdenum security, and what role does Malmbjerg play in that effort?

The European Union is the world’s second-largest molybdenum consumer, responsible for around 122 million pounds annually or 19% of global demand. Despite its downstream capabilities in specialty steel, the EU lacks any domestic molybdenum extraction capacity—an imbalance highlighted by its increasing focus on critical mineral security.

Greenland Resources’ Malmbjerg project offers a strategic solution. The open-pit deposit is located in central eastern Greenland—an EU Associate country—and is supported by the European Raw Materials Alliance (ERMA). Malmbjerg’s resource of 571 million pounds of contained molybdenum (Proven and Probable Reserves) and high-grade early mine-life profile are central to its commercial appeal. From years one through ten, the mine is expected to produce 32.8 million pounds of contained molybdenum annually, which would account for approximately 25% of EU demand and cover 100% of EU defense-sector requirements.

The ore body’s low deleterious content also makes it highly suitable for alloying in high-performance and defense-grade steel. More than 80% of metallic materials—including carbon and stainless steels—used in defense applications require molybdenum alloying, according to Greenland Resources.

What makes the Greenland–Hempel deal strategic for Germany’s steel and defense industries?

The timing of the MOU aligns closely with Germany’s defense budget trajectory. The country is aiming to ramp up military spending from 1.5% to roughly 5% of GDP in the coming years, significantly increasing its need for secure access to alloying materials like molybdenum.

At present, global primary molybdenum production is heavily concentrated in just two countries—China (87%) and the United States (13%)—making Germany’s current sourcing highly exposed to geopolitical risk. China has already imposed export controls on molybdenum and has transitioned from being a net exporter to a net importer.

This dynamic makes Greenland Resources’ low-emissions, Europe-oriented supply chain particularly attractive to German buyers. Hempel Metallurgical GmbH, as one of Germany’s leading molybdenum suppliers and part of the wider Hempel Intermétaux SA group, adds distribution muscle and regional reach to the partnership.

How financially viable is the Malmbjerg project and what are its expansion opportunities?

The Malmbjerg molybdenum project is backed by a 2022 NI 43-101 Definitive Feasibility Study conducted by Tetra Tech. The project carries a capital expenditure estimate of US$820 million and a levered after-tax internal rate of return (IRR) of 33.8%, with a payback period of just 2.4 years assuming a molybdenum price of US$18 per pound.

Malmbjerg’s high-grade zones are scheduled for extraction during the early years, maximizing cash flow during the first decade of operations. The modularized mine design emphasizes minimal water usage, low aquatic disturbance, and an overall reduced environmental footprint, aligning with ESG expectations from both regulators and institutional investors.

In addition to molybdenum, the mine also contains a magnesium byproduct opportunity. Greenland Resources is currently exploring innovative methods to extract magnesium from the 35,000 m³/day of saline water used in the process, which contains approximately 900 ppm of magnesium. The firm plans to incorporate these byproduct economics into future feasibility studies.

What institutional support and regulatory progress has Greenland Resources achieved so far?

On June 19, 2025, Greenland Resources secured an exploitation license for both molybdenum and magnesium from Greenlandic authorities, a critical regulatory milestone. The company has also been endorsed by the European Raw Materials Alliance (ERMA), part of the European Institute of Innovation and Technology (EIT RawMaterials), highlighting the project’s alignment with EU mineral independence goals.

Institutional sentiment around the project remains positive, especially in light of its strategic relevance to European defense, green energy technologies, and specialty steel production. While off-take agreements with individual German steelmakers are yet to be formally disclosed, Greenland Resources has suggested that additional announcements are imminent.

What are the broader implications for molybdenum supply chains amid rising geopolitical risks?

As molybdenum becomes increasingly weaponized in trade and geopolitical negotiations, the EU’s overreliance on China and the United States for supply creates significant vulnerability. In addition to its military applications, molybdenum is critical for green energy systems such as wind turbines and solar technologies, where corrosion resistance and high temperature performance are essential.

Governments across the globe are beginning to codify molybdenum as a strategic mineral. The U.S., China, Russia, India, and South Korea—all top defense spenders—have already classified molybdenum as critical or strategic, adding further momentum to alternative supply chains such as Greenland Resources’.

What is the future outlook for Greenland Resources and its role in the EU’s mineral strategy?

Looking ahead, institutional investors and analysts expect Greenland Resources to focus on finalizing direct offtake agreements, securing project financing, and advancing early-stage construction. The company’s positioning as a molybdenum and magnesium supplier from an EU-aligned jurisdiction gives it a unique geopolitical and commercial edge.

While risks remain—including capital market conditions, energy price volatility, and permitting timelines—the combination of proven reserves, regulatory licenses, and emerging European partnerships places Greenland Resources in a favorable position.

Further upside may emerge from the integration of magnesium byproduct recovery and ongoing support from European strategic sourcing programs. If the company can successfully navigate the path to full-scale production, it may become one of the most significant contributors to the EU’s mineral independence over the coming decade.