Molybdenum can replace tungsten in some uses, whose production chain is dominated by China.
By Catalina Muñoz-Kappes
Few people intentionally mine for molybdenum in Chile. Yet the metal—typically found alongside copper—is the country’s eighth-largest export and has made Chile the world’s third-largest producer of molybdenum. More recently, the metal has gained strategic importance because it offers an alternative to tungsten, whose global supply chain is
overwhelmingly controlled by China.
Molybdenum is used primarily in the production of stainless steel. In 2025, Chile exported US$2.48 billion worth of molybdenum, with South Korea accounting for the largest share of shipments. In May 2026, the metal traded at around US$30 per pound, nearly 49% higher than a year earlier.
Molybdenum can serve as a complementary material or a partial substitute for tungsten in certain specialty steels and high-performance alloys. Unlike tungsten, however, it is not subject to the same level of geopolitical risk.
Juan Carlos Guajardo, Executive Director of Plusmining, said the tungsten supply chain has become “less reliable” and increasingly expensive. “China overwhelmingly dominates not only tungsten production but, more importantly, its processing. The metal is essential for cutting tools, mining drilling equipment, defense, aerospace, and advanced manufacturing,” he said.
According to data from the U.S. Geological Survey (USGS), China accounts for nearly 80% of global tungsten production. While China is also the world’s largest producer of molybdenum, its market share is considerably smaller.
Against this backdrop, Guajardo believes Chile should place greater strategic emphasis on molybdenum. “In Chile, molybdenum is produced almost entirely as a by-product of copper mining. Precisely for that reason, a strategic approach does not mean opening dedicated molybdenum mines. Rather, it means recognizing that a mineral historically regarded as secondary can become a geopolitical asset of growing importance,” he said.
Critical Mineral
Molybdenum was included in the latest update of Chile’s Critical Minerals List, published in January this year. However, according to Guajardo, “its inclusion should translate into a more explicit and operational strategic framework.”
Chile’s Ministry of Mining said it is “implementing a comprehensive agenda that promotes the development of all strategic minerals, including molybdenum.”
Molybdenum also provides an important source of additional revenue for copper producers, helping offset weaker copper output. Market expectations suggest prices could rise further. “Prices could remain above historical averages, with scope for additional gains if supply constraints persist, although the potential for further upside surprises is lower than at the beginning of the rally,” said XTB market analyst Emanoelle Santos.
Source: El Mercurio