Greenland Resources' Strategic MoU with Hempel: A Critical Link in the EU's Clean Energy Supply Chain

In the race to decarbonize the global economy, securing stable access to critical minerals has become a geopolitical and industrial imperative. Greenland Resources’ recent memorandum of understanding (MoU) with Hempel Metallurgical GmbH—a leading German molybdenum supplier—positions the Canadian-listed explorer as a pivotal player in the European Union’s (EU) quest to fortify its clean energy supply chains. This partnership, centered on the Malmbjerg project in Greenland, underscores the growing strategic value of molybdenum in technologies ranging from solar photovoltaics to hydrogen electrolysers, while addressing the EU’s urgent need to reduce reliance on external suppliers.

A Strategic Partnership for Molybdenum Supply

The MoU outlines a long-term supply agreement for molybdenite concentrate and secondary products such as ferromolybdenum and molybdenum oxide, with roasting operations to occur in Belgium [1]. The Malmbjerg project, which has completed an NI 43-101 feasibility study, is projected to supply approximately 25% of the EU’s annual molybdenum demand and fully meet its defense-related requirements [2]. This is significant given Germany’s dominance as the EU’s largest molybdenum consumer, using 16.3 million pounds in 2024 alone [2]. By anchoring a domestic supply chain, Greenland Resources and Hempel aim to deliver high-quality, low-emission molybdenum to the EU market, aligning with the bloc’s green energy and defense priorities.

Molybdenum’s Role in the Clean Energy Transition

Molybdenum’s importance in clean energy technologies is often overlooked but increasingly critical. According to a 2025 sustainability analysis, molybdenum crucibles are indispensable in producing high-purity silicon for monocrystalline solar cells, enabling efficiencies above 26% [3]. Additionally, molybdenum oxide is gaining traction in thin-film solar technologies, enhancing electrical conductivity and light absorption [3]. In energy storage, emerging battery systems using molybdenum oxide demonstrate 15-20% higher energy density compared to conventional lithium-ion batteries [3]. These applications position molybdenum as a linchpin in the EU’s decarbonization agenda, particularly as the bloc aims to scale domestic solar manufacturing under its European Solar Initiative [4].

EU’s Strategic Push for Resource Security

The EU has explicitly recognized molybdenum as a critical raw material (CRM), listing it in its 2020 CRM catalog and retaining its relevance in the 2023 update [5]. The European Commission’s updated CRM list, which now includes 34 materials, reflects growing concerns over supply chain vulnerabilities, including geographic concentration of production and geopolitical risks [5]. Initiatives like the EU Energy and Raw Materials Platform and the European Raw Materials Alliance aim to diversify procurement and establish domestic value chains for permanent magnets and other components [4]. Greenland Resources’ MoU directly supports these efforts by providing a stable, low-emission source of molybdenum, reducing the EU’s exposure to supply shocks from non-EU producers.

Investment Implications and Risks

For investors, the Malmbjerg project represents a rare combination of strategic alignment with EU policy, technical feasibility, and market demand. The project’s capacity to meet both industrial and defense needs, coupled with Hempel’s established market presence, enhances its commercial viability. However, challenges remain. The IEA’s Global Critical Minerals Outlook 2025 highlights that molybdenum supply faces headwinds from long mine lead times and competition from substitute materials [6]. Additionally, environmental scrutiny of mining operations—despite Greenland Resources’ emphasis on low-emission processes—could delay permitting or increase costs.

Conclusion

Greenland Resources’ partnership with Hempel is more than a corporate deal—it is a strategic intervention in the EU’s clean energy supply chain. By securing a reliable, sustainable source of molybdenum, the project addresses a critical gap in the bloc’s resource security while supporting its decarbonization goals. For investors, this positions Greenland Resources as a key beneficiary of the EU’s green transition, provided it navigates regulatory and operational risks effectively.

Source:
[1] Greenland Resources Signs MOU With Hempel to Strengthen ... [https://finance.yahoo.com/news/greenland-resources-signs-mou-hempel-123200508.html]
[2] Greenland Resources signs MoU with Hempel for ... [https://www.mining-technology.com/news/greenland-resources-mou-hempel-molybdenum-supply/]
[3] Executive summary – Global Critical Minerals Outlook 2025 [https://www.iea.org/reports/global-critical-minerals-outlook-2025/executive-summary]
[4] Metals Clean Energy [https://eurometaux.eu/metals-clean-energy/]
[5] Critical raw materials - European Commission [https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-materials_en]
[6] Global Critical Minerals Outlook 2025 – Analysis [https://www.iea.org/reports/global-critical-minerals-outlook-2025]