The global molybdenum market was valued at USD 4.96 billion in 2025 and is expected to grow at a CAGR of 5.30% during the forecast period of 2026–2035, reaching a projected value of USD 8.31 billion by 2035. The market is significantly influenced by stricter environmental policies and the increasing demand for cleaner production processes across industries, especially in chemical production and pollution control.

Key Growth Drivers in the Global Molybdenum Market

1. Stricter Environmental Regulations

One of the primary drivers for the growth of the molybdenum market is the rising global emphasis on environmental protection and cleaner production. Governments in regions such as North America and Europe are implementing stricter regulations on nitrogen oxide (NOx) emissions from industrial plants, including chemical and refining sectors. These regulations are creating a higher demand for molybdenum-based catalysts used in various applications, such as in pollution control and reducing emissions.

Molybdenum plays a crucial role in the formulation of catalysts, such as those used to facilitate the conversion of methanol to formaldehyde. For instance, Syamcat introduced an iron-molybdenum catalyst in November 2024 to improve the efficiency of this process. The growing focus on sustainability and reducing industrial carbon footprints will continue to drive the adoption of molybdenum in such applications.

2. Increased Demand for Molybdenum in Steel Production

Molybdenum is a key component in producing high-strength steel used in industries such as construction, automotive, and aerospace. The demand for steel with enhanced corrosion resistance and high-temperature tolerance is particularly increasing in emerging markets with expanding infrastructure needs. As global urbanization accelerates, the need for high-quality, durable steel is expected to continue, thus boosting the demand for molybdenum as an alloying agent.

Additionally, the growth of the automotive sector, particularly with the rise of electric vehicles (EVs), further supports the increased usage of molybdenum in high-performance steel components for EV batteries, engines, and structural parts.

3. Recycling and the Circular Economy

The global push towards a circular economy is significantly impacting the molybdenum market, encouraging the recycling of molybdenum-containing scrap. The recycling of molybdenum not only reduces mining-related environmental impacts but also helps conserve resources and lower production costs. As companies and governments worldwide emphasize resource efficiency, the adoption of recycling practices for molybdenum is expected to increase.

Recycled molybdenum from industrial scrap or end-of-life products is becoming an increasingly important source for molybdenum supply, reducing dependency on mined molybdenum and aligning with the global focus on sustainability.

4. Technological Advancements in Molybdenum Applications

Ongoing advancements in molybdenum-based materials are opening up new avenues for its use in electronics, energy storage, and renewable energy technologies. Molybdenum’s properties make it an ideal candidate for high-performance electronic devices, including semiconductors, as well as solar panels and batteries. As the demand for these technologies grows, molybdenum is expected to play a vital role in advancing the development of clean energy and electronics sectors.

Key Challenges Facing the Global Molybdenum Market

1. Volatility in Molybdenum Prices

The molybdenum market is subject to fluctuations in supply and demand, often influenced by global economic conditions and geopolitical factors. Price volatility, especially during periods of high demand or supply disruptions, can impact profitability for producers and consumers alike. Additionally, fluctuations in the price of raw materials such as molybdenum ore or the price of energy used in its extraction could lead to instability in the market.

2. Dependency on Mining Activities

Molybdenum is primarily obtained as a by-product of copper mining, and any fluctuations in copper production or disruptions in mining activities can directly impact the supply of molybdenum. Additionally, mining environmental regulations are becoming more stringent, which could increase the cost of production and potentially affect the supply chain.

Moreover, mining operations are often located in regions with challenging environmental conditions, which may lead to resource depletion or political instability, creating risks for the long-term supply of molybdenum.

3. Competition from Alternative Materials

The increasing adoption of alternative materials such as tungsten and vanadium in steel manufacturing and other industrial applications could pose a challenge to the demand for molybdenum. These materials, although not direct substitutes, offer certain similar properties, such as high strength and corrosion resistance, and may reduce the overall reliance on molybdenum in certain industries.

4. Environmental and Regulatory Constraints in Mining

Molybdenum extraction and production are associated with significant environmental challenges, including water usage, land degradation, and emission control issues. As countries adopt tougher environmental regulations, particularly in mining-heavy regions, compliance with these rules may increase the cost of production and operational challenges for molybdenum producers.