According to recent research by Straits Research, the global molybdenum market is anticipated to grow from USD 4.4 billion in 2022 to USD 6.82 billion by 2031, registering a compound annual growth rate (CAGR) of 4.07% during the forecast period of 2023-2031.
This substantial growth is primarily fuelled by the increasing demand for molybdenum across various industrial sectors due to its unique properties and applications.
Notably, the demand for molybdenum is driven by the booming steel production in China, the world's leading steel manufacturer.
Molybdenum-containing stainless steels are increasingly favoured over other grades due to their superior corrosion resistance, critical for industries like construction and automotive. These sectors are thriving in China due to urbanisation and industrial growth, thus propelling the demand for molybdenum.
Moreover, the energy sector is creating significant opportunities for the molybdenum market.
As the global shift towards renewable energy sources gains momentum, the demand for materials used in the construction of solar panels, wind turbines, and other renewable energy infrastructure is increasing.
Therefore, Molybdenum plays a critical role in these applications, particularly in thin-film photovoltaic cells where it is used as an absorber layer to enhance the efficiency of solar energy conversion.
In the spotlight: Taiton Resources
In Australia, molybdenum is not produced as a primary metal; rather, it is often a byproduct of copper mining.
However, Taiton’s projects are changing this landscape by targeting molybdenum as a primary metal.
The company has two key assets prospective for molybdenum, both situated in Australia.
In New South Wales, the Kingsgate Molybdenum and High-Purity Quartz project, acquired in January 2024, stands out as a key asset.
Previously operating as a high-grade Molybdenum-Bismuth mine, Kingsgate is poised for a return to production under Taiton’s stewardship, aiming to capitalise on its historical success.
Historically, this region has been a significant producer of tin and molybdenum, with estimated historical outputs of 300,000 tonnes of tin and 450 tonnes of molybdenum, primarily during the late 19th and early 20th centuries (Figure 1).
Figure 1: Taiton Kingsgate Project Location (Source: Website)
In South Australia, the company’s Highway project has also demonstrated prospectivity for molybdenum amongst other metals.
Situated in the renowned Olympic Dam Province, the Highway project holds the potential for uncovering large-scale, economically viable deposits of molybdenum, gold and Ni-cu-PGE (Nickel – copper -platinum group elements) (Figure 2)
Exploratory efforts in 2023, including an Ultra-Fine sampling program, uncovered significant molybdenum mineralisation at Merino, with subsequent drilling confirming the scale and continuity needed for economic viability.
Building on these findings, Taiton's 2024 exploration strategy involves shifting focus from Merino to explore other prospects with potential for preservation and richer mineralisation.
This includes the Garfield Prospect and new areas like Pluto and Snoopy. These efforts are part of a comprehensive plan to evaluate the region for a variety of mineralisations, including precious metals, base metals, and rare earth elements.
Figure 2: Location of Taiton’s Highway Project.
Region-wise, Asia-Pacific is the leading contributor to the global molybdenum market and is expected to maintain its dominance with a projected CAGR of 4.64% throughout the forecast period.
The region benefits from robust industrial activity and significant investments in automotive and electronics sectors backed by supportive government policies aimed at boosting domestic manufacturing.
Europe is also showing promising growth, with a projected CAGR of 3.04%. Germany, in particular, as the largest automotive manufacturer in Europe, is a significant user of molybdenum in vehicle production.
The anticipated increase in commercial and industrial construction projects is expected to further drive the demand for molybdenum-based steel alloys in the region.
In summary, the global molybdenum market is poised for significant growth due to its critical role in modern industrial applications.
With increasing investments in infrastructure and renewable energy, coupled with the ongoing industrialisation in Asia-Pacific, molybdenum's market outlook remains robust and promising through 2031 and beyond.
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