The outlook for platinum group metals demand has been uplifted by a series of new developments in the field of platinum-catalysed green hydrogen generation as well as concomitant fuel cell buildouts that are green-hydrogen fed.
On top of South Korea setting out to construct the world's largest hydrogen fuel cell power plant in the coastal city of Gyeongju, Sinopec inaugurating Hong Kong's first public hydrogen refuelling station, and Metrans testing of Slovakia's first hydrogen truck, Toyota UK has constructed ten quick-filling hydrogen fuel cell Hilux prototypes that have diesel-engine range, Tanaka of Japan has developed the world's first bulk nano-sized platinum that has ten times more hardness and four times more strength, BMW is introducing hydrogen-powered tugger trains and forklifts at its digital plant in Germany, and a global coalition of industry representatives at COP29 has brightly spotlighted the major benefits of a far larger investment thrust in hydrogen fuel cells than the $75-billion already at final investment decision (FID) stage across 434 projects.
Moreover, the World Platinum Investment Council has drawn attention to:
Le Havre, in France, being on its way to becoming a central hydrogen hub as part of a French government-backed $1.69-billion initiative involving Air Products and Qair Group.
Electrical demand for platinum in hard disk drives (HDDs) in a cobalt, chromium and platinum alloy which forms the storage layer in HDD stacks.
Platinum finding increasing uses in the semiconductor and sensor industries, with applications growing on the back of rising demand for artificial intelligence (AI), and, in the case of HDDs, the associated need for more data storage capacity. The AI market is projected to grow steeply to around $1.3-trillion over the next decade from a market size of $40-billion in 2022.
The biggest share of end-use platinum demand remains the automotive sector, which has a 40% pull. This is followed by platinum jewellery, which in 2024 absorbed 25% of the eight-million-plus ounces of platinum production. Glass demand takes up 8%, chemical demand 7%, investment demand 6%, medical 4%, petroleum 2%, hydrogen 1% and other 7%.
In South Africa, all speakers at the Mapungubwe Institute for Strategic Reflection's (Mistra's) ninth yearly platinum group metals (PGM) roundtable, on November 27, agreed that South Africa has potential to become a leading player in the hydrogen and fuel cell industry.
By developing capacities, the country can become an indispensable part of the whole hydrogen value chain from mining of minerals and beneficiation, to manufacturing and services, said Mistra executive director Joel Netshitenzhe.
As South Africa progresses its platinum-based hydrogen fuel cell economy, Mistra aims to ensure that the benefits of these emergent industries accrue to all, including youth and communities. Additionally, the institute is focused on securing the global supply of green hydrogen by ensuring PGMs and other critical minerals remain a stable and mutually beneficial source for investment.
Netshitenzhe cited estimates that 35-million tonnes of green hydrogen will be produced by 2035 and form 20% of the EU's energy mix by 2050, while the world is also moving towards more fuel-cell-powered trains, small vehicles, ships and aircraft.
South African hydrogen projects still awaiting FID include Boegoebaai in the Northern Cape, Coega in the Eastern Cape, Saldanha green steel in the Western Cape, Mitochondria's Vereeniging project in Gauteng, the Platinum Valley mobility initiative in Gauteng and KwaZulu-Natal, Isondo Fuel Cells project in Gauteng, and Enertrag green ammonia project in the Northern Cape.
North America's only publicly traded pure-play green hydrogen company, the Toronto Stock Exchange-listed Charbone Hydrogen, reported a 23% year-on-year revenue in the third-quarter of this year, along with progress beginning green hydrogen production at its Sorel-Tracy facility in Quebec next year...
