Platinum is stepping into the spotlight as a key player in the emerging hydrogen economy, and its role is expected to grow significantly between 2025 and 2030. This shift is driven by platinum’s unique properties that make it essential for green hydrogen production, particularly in fuel cells and electrolyzers.
Fuel cells use platinum as a catalyst to efficiently convert hydrogen into electricity without harmful emissions. This makes platinum indispensable for clean energy technologies that aim to reduce carbon footprints globally. As countries push toward greener energy solutions, demand for platinum in these applications is rising sharply.
The supply side of platinum presents challenges that are likely to influence its price trajectory over the coming years. Most of the world’s platinum comes from South Africa and Zimbabwe, regions facing production difficulties due to power shortages, labor strikes, and infrastructure issues. In fact, South Africa’s output recently hit a 20-year low while export restrictions in Zimbabwe have further tightened supply.
Recycling helps supplement supply but only accounts for about a quarter of total availability because much of the metal remains locked up in long-lasting catalytic converters on vehicles. With new mining projects scarce and existing mines struggling to maintain output levels, this creates a structural deficit where demand consistently outpaces supply.
On the demand front beyond green hydrogen:
– Automakers are increasing their use of platinum in catalytic converters to meet stricter emission standards like Euro 7 regulations starting around 2026.
– Jewelry markets—especially in China—are shifting toward more affordable precious metals like platinum amid high gold prices.
– Industrial uses continue expanding alongside investment interest as investors seek alternatives amid fluctuating gold prices.
Looking ahead from 2025 through 2030:
– The World Platinum Investment Council forecasts annual deficits close to one million ounces or more.
– Demand linked specifically to hydrogen fuel cell technology could reach around three million ounces per year by 2030.
– Above-ground inventories are shrinking rapidly; stocks may be depleted within just a few years if current trends persist.
These factors combine into strong upward pressure on platinum prices during this period. Analysts predict significant price surges fueled by tightening supplies against growing industrial needs tied closely with global decarbonization efforts through hydrogen technologies.
In essence, as green hydrogen moves from niche innovation toward mainstream energy solution status worldwide, platinum stands at its core—not just as an industrial metal but increasingly as a strategic resource whose value will reflect its critical role powering tomorrow’s clean economy.