EV Resources (ASX: EVR) Poised for Growth as China Imposes Molybdenum Export Controls

Key Highlights:

• China, which produces nearly half of the world’s molybdenum, has announced new export restrictions.
• EV Resources’ Parag copper-molybdenum project in Peru (EVR: 70%) is strategically positioned to fill supply gaps, particularly in the U.S. market.
• Strong molybdenum grades confirmed at Parag, with drilling results showing high potential for economic viability.
• Ongoing discussions with U.S. molybdenum roasters signal growing interest in securing new supply sources.

China’s Molybdenum Restrictions Shake Global Markets

EV Resources Ltd (ASX: EVR) has received growing interest from investors regarding how China’s new export restrictions on molybdenum could impact its flagship Parag copper-molybdenum project in Peru. Given that China accounted for 45% of global molybdenum production in 2023, these new controls could significantly disrupt supply chains—especially for key consumers like the United States, which only produces 12% of its own molybdenum supply.

With molybdenum being a critical metal for strengthening steel alloys, aerospace, and industrial applications, these supply constraints could drive demand toward alternative producers outside of China—and EV Resources is well positioned to capitalize on this shift.

Parag Project: A Strategic Molybdenum Play in the Americas

EV Resources’ Parag copper-molybdenum-silver porphyry project in Peru (EVR: 70%) has been generating strong interest from U.S. molybdenum refiners, as Western markets look for reliable and long-term supply solutions.

The company has drilled 83 holes to date, with significant intersections confirming high molybdenum grades as a valuable byproduct of copper mineralization. Notable drill results include:

• APG-001: 476m at 0.31% Cu and 0.14% Mo, including a higher-grade interval of 24m at 0.81% Cu and 0.43% Mo.
• APG-002: 258.8m at 0.40% Cu and 0.14% Mo, with peak intersections of 80m at 0.80% Cu and 0.30% Mo.
• APG-003: 211.5m at 0.40% Cu and 0.20% Mo, with high-grade hits like 32m at 1.20% Cu and 0.40% Mo.
• APG-005: 148m at 0.54% Cu and 0.35% Mo, confirming the potential for economic extraction.

These grades rival or exceed those of many primary molybdenum mines, further enhancing Parag’s attractiveness as a strategic alternative supply source.

Molybdenum Prices Soar Amid Supply Uncertainty

Molybdenum prices have seen strong performance, closing at US$20.75/lb (US$45,746/tonne) on February 7, 2025, which is nearly five times the price of copper. This price surge reflects increasing demand and tightening supply, making projects like Parag even more economically viable.

EV Resources’ Managing Director, Hugh Callaghan, emphasized the significance of the current market dynamics:

            “It was inevitable that molybdenum would face export restrictions from China. With global mines aging and ore grades depleting, molybdenum is emerging as a strategic metal. Parag’s exceptional byproduct molybdenum grades position it as a leading alternative supplier outside China.”

A Perfect Storm for EVR’s Growth

The U.S. and other Western nations are now prioritizing domestic and allied sources of critical minerals, and EV Resources’ strategic location in Peru, strong drilling results, and growing interest from U.S. buyers put the company in a highly advantageous position.

Several key factors make Parag an attractive development opportunity:

• High-grade copper and molybdenum mineralization from surface allows for easier extraction.
• Excellent infrastructure access, including hydroelectric power, plentiful water supply, and close proximity to Chancay, a major new bulk port.
•  Strong community relations support project development and operational sustainability.

Next Steps: Unlocking the Full Potential of Parag

As demand for non-Chinese molybdenum supply intensifies, EV Resources is actively exploring funding options for further drilling and engaging with molybdenum buyers across the Americas.

Additionally, the recent opening of the Chancay bulk terminal—just two hours from Parag—will be a game changer for export logistics, enabling cost-effective shipment of molybdenum and copper concentrates to international markets.

Final Thoughts: A Critical Moment for EVR

With China’s export restrictions disrupting global supply chains, EV Resources is uniquely positioned to benefit from this shifting market dynamic. The Parag project’s impressive molybdenum grades, strategic location, and growing U.S. interest make it one of the most compelling stories in the critical minerals space today.