A molybdenum disulfide powder product produced by jet milling a molybdenum disulfide precursor material and substantially continuously combining newly sized-reduced particles with oil to produce said molybdenum disulfide powder product, said molybdenum disulfide powder product having a D50 particle size of less than 4 μm and an acid number that is less than about 0.5 mg KOH/g. A method for producing powder product includes the steps of: Providing a supply of a precursor powder material; accelerating particles of the precursor powder material by combining them with a flow of gas; confining the accelerated particles in a milling chamber so that they collide with one another to effect a size reduction; and coating newly exposed surfaces of size-reduced particles with oil.