Platinum Demand From Hybrid Vehicles
Hybrid vehicles mix a gasoline engine with an electric motor to save fuel and cut pollution. These cars need special parts to clean exhaust gases, and platinum plays a big role in those parts. Platinum goes into catalytic converters, which turn harmful fumes from the engine into safer ones like water vapor and carbon dioxide. As more hybrids hit the roads, demand for platinum rises because each vehicle uses this metal in its exhaust system.
In Europe during the third quarter of 2025, hybrid car production jumped 14 percent while pure gasoline car output dropped 15 percent. For the first time, hybrids outpaced traditional gas cars there. But smaller engines in these hybrids meant less platinum per car, so overall demand did not grow as much as expected. Still, the shift shows hybrids keeping platinum relevant in car manufacturing. You can read more details in the WPIC Platinum Quarterly Q3 2025 report.
Hybrid engines often run in stop-start modes, which can mean hotter or dirtier exhaust at times. This setup sometimes requires more platinum in the catalysts than regular gas cars to meet strict emission rules. A recent European Union decision scrapped a full ban on gas engines by 2035 and now allows hybrids and plug-in hybrids to continue selling. This change could extend platinum use in cars for years by supporting hybrid sales. Experts note that many hybrids need higher amounts of platinum group metals like platinum for better cleaning during those tough cycles. Check the analysis at The Platinum Singularity article.
Globally, the platinum market hit 194.68 tons in 2025, with forecasts to reach 271.15 tons by 2034. Tighter emission laws worldwide push this growth, especially for diesel and hybrid systems that rely on platinum catalysts. Hybrids fit right into this trend as car makers balance electric tech with gas power. The IMARC Group platinum price update highlights how hybrids add to demand alongside hydrogen fuel cells.
Even with some buyers cooling on hybrids–a global survey showed preference dropping to 16 percent in 2025 from 21 percent the year before–production keeps climbing in key areas. Full-year 2025 automotive platinum demand stays strong at over three million ounces, beating the five-year average by 10 percent. This includes hybrids in light-duty cars. North America saw hybrid growth offset some declines in other vehicle types. See the WardsAuto consumer survey and WPIC news updates for the numbers.
Heavy trucks add another layer, as most still use diesel engines with platinum catalysts, but light hybrids lead the passenger car shift. Overall, hybrids bridge the gap between old gas cars and full electrics, locking in platinum demand through at least the next decade.
Sources
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://shanakaanslemperera.substack.com/p/the-platinum-singularity-how-the
https://www.imarcgroup.com/news/platinum-price-index
https://www.wardsauto.com/news/consumers-turn-back-to-ice-EY-survey-2025/807862/
https://platinuminvestment.com/news