Greenland Resources Secures Molybdenum Supply Agreement with Hempel for German Steel Sector

Greenland Resources Targets German Steel Sector with Long-Term Molybdenum Supply

Greenland Resources has signed a memorandum of understanding (MoU) with Germany-based Hempel Metallurgical to supply molybdenum and related products. The deal includes molybdenite concentrate, ferromolybdenum, and molybdenum oxide, making it a cornerstone in Greenland’s ambition to become the largest molybdenum supplier to Germany.

Based on its NI 43-101 feasibility study, Greenland Resources expects to announce more direct offtake deals with German steel manufacturers. Roasting of molybdenum concentrate will take place in Belgium, aligning with the EU’s preference for cleaner industrial processing. Germany, the top molybdenum consumer in the EU, used 16.3 million pounds in 2024, according to the International Molybdenum Association.

Meanwhile, Italy and Finland have already secured molybdenum offtake agreements with the company. These partnerships are part of a broader EU push for secure and sustainable supply chains in critical raw materials. The company’s flagship Malmbjerg project, located in east-central Greenland, will be the source of the high-purity molybdenum.

Strategic MoU Strengthens EU Molybdenum Security and Defence Supply Chain

The Malmbjerg open-pit mine, located about 30 kilometers from Greenland’s east coast, will produce pure molybdenum along with by-product magnesium. This mine is vital to the EU, offering a domestic-aligned source of low-impurity molybdenum well-suited for defence and high-performance steel applications.

The MoU with Hempel supports a larger initiative to cover up to 25% of the EU’s molybdenum demand, including 100% of the EU defence sector’s needs. The project offers not only material quality but also long-term supply security, a growing priority for European governments.

In June 2025, Greenland Resources received a 30-year exploitation licence for molybdenum and magnesium at Malmbjerg. Mining activities must begin by December 2028, with the potential for a 50-year licence extension. The company has also committed to fulfilling additional regulatory requirements tied to this approval.

SuperMetalPrice Commentary:

The Greenland–Hempel MoU reflects a broader shift in Europe’s strategic approach to critical raw materials. With rising geopolitical risks and global competition for molybdenum, the EU is prioritizing secure, local-aligned supply chains. Greenland Resources’ low-emission profile, long mine life, and alignment with EU industrial goals position it as a future key molybdenum supplier. Watch for further offtake announcements from German industry players as the Malmbjerg project advances toward production.