Platinum and PGM Stocks: News, Market Analysis and Sector Coverage

Platinum group metals are a family of six chemically similar metallic elements: platinum, palladium, rhodium, iridium, osmium, and ruthenium. They are clustered together in the periodic table and share properties that make them exceptionally valuable industrially and commercially. These properties include remarkable catalytic activity (the ability to facilitate chemical reactions without being consumed), very high melting points, excellent resistance to corrosion and oxidation, and electrical conductivity. Their rarity is also a significant value driver: annual production of all PGMs combined amounts to only a few hundred tonnes globally, compared to thousands of tonnes for gold. The combination of scarcity and industrial necessity underpins their elevated price levels relative to most other metals.

The global PGM mining industry is concentrated in two countries to a degree unlike almost any other commodity. South Africa accounts for roughly 70 to 75 percent of world platinum production, with virtually all of it coming from the Bushveld Igneous Complex, a vast layered intrusive geological formation that hosts the world's richest and most extensive PGM deposits. Zimbabwe, within the same Great Dyke geological structure, is the second most significant primary platinum producer. Russia dominates palladium production, with the Norilsk Nickel complex in Siberia accounting for roughly 40 percent of global palladium supply as a by-product of nickel mining. Canada and the United States also produce PGMs as by-products from other mining operations. Australia has emerging PGM exploration but is not yet a significant producer.

The largest industrial use of platinum is in automotive catalysts, specifically the catalytic converters fitted to diesel-powered vehicles to reduce harmful exhaust emissions. In a diesel catalytic converter, platinum acts as a catalyst that oxidises carbon monoxide and unburned hydrocarbons into carbon dioxide and water. The sharp rise in global diesel vehicle sales from the 1990s through to the late 2010s was a major driver of platinum demand. Other significant industrial uses of platinum include petroleum refining, where it catalyses the reforming of crude oil fractions into higher-octane fuel components; chemical manufacturing, where it enables the production of nitric acid, silicone, and other industrial chemicals; and glass manufacturing, where platinum-lined vessels are used in the production of LCD glass and specialty fibres. Platinum jewellery, particularly popular in China and Japan, is another meaningful demand category.

Platinum group metals, particularly platinum, are central to several key hydrogen technologies that are attracting significant investment as part of the global energy transition. In hydrogen fuel cells, platinum is used as the catalyst at both the anode and cathode of the electrochemical reaction that converts hydrogen and oxygen into electricity and water. Fuel cells are being developed for applications including zero-emission heavy transport, stationary power generation, and maritime vessels. Platinum is also a key catalyst in the production of green hydrogen through proton exchange membrane (PEM) electrolysis, which uses renewable electricity to split water into hydrogen and oxygen. Iridium, another PGM, is also critical in PEM electrolysers as an anode catalyst. The potential growth in hydrogen fuel cell deployment and green hydrogen production represents a significant potential demand driver for platinum and iridium.

While both platinum and gold are precious metals that are traded on commodity exchanges, their markets operate quite differently. Gold is primarily an investment and monetary asset, with a significant proportion of demand coming from central banks, investors, and jewellery buyers. Platinum, by contrast, has a demand profile dominated by industrial applications, particularly automotive catalysts, meaning its price is more closely tied to economic activity, automotive production volumes, and regulatory trends around vehicle emissions. Platinum is also significantly rarer than gold in terms of annual mine supply, yet it has often traded below the gold price, reflecting its more industrial character and the impact of shifting automotive demand. The platinum market is considerably smaller and less liquid than the gold market, which can contribute to greater price volatility.