Molybdenum Forecast Lowered Amid Industry Challenges
The global outlook for molybdenum consumption has been revised downward. While automobile production is expected to grow by 11% by 2033, earlier forecasts had predicted a 30% rise. The automotive sector, once seen as a major driver of demand, is now facing weaker growth.
EV Market Slows, Weighing on Molybdenum Demand
Electric vehicles (EVs), a key application for molybdenum in batteries and structural materials, are now projected to grow at 21% annually between 2024 and 2027. This is a sharp decline from the 61% annual growth seen from 2020 to 2023, reducing upward pressure on molybdenum demand.
Aerospace and Renewables Provide Stability
While demand from aerospace and renewable energy remains stable, supply chain disruptions are causing delays for key manufacturers like Airbus and Boeing. In parallel, China’s weak property market and high interest rates continue to drag down molybdenum usage in construction and engineering.
Global Consumption Remains Tight in 2023
Despite slower growth, global molybdenum consumption in 2023 still rose by 1% to 630 million pounds. China continues to be the world’s top producer and consumer. Analysts expect the molybdenum market to remain tight, with persistent demand in multiple sectors balancing out weaker growth forecasts.
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