Platinum plays a key role in cars through devices called autocatalysts. These help clean exhaust gases from engines that burn fuel, like those in regular cars and hybrids. Experts at the World Platinum Investment Council, or WPIC, predict how much platinum cars will need in the coming years. Their latest report from late 2025 gives a clear picture.
For 2025, automotive platinum demand is set at 3,020 thousand ounces. That marks a drop of 3 percent, or 89 thousand ounces, from the year before. The decline comes from fewer cars with these engines being made, both small passenger ones and big trucks. Light-duty and heavy-duty vehicle production is slowing. Even so, this amount sits 10 percent above the average of the past five years, or 271 thousand ounces higher. You can read more in the WPIC Platinum Quarterly Q3 2025 press release at https://platinuminvestment.com/files/954835/WPIC_PR_PQ_Q3_2025_20251119.pdf.
Why the drop? Makers are building fewer vehicles that need platinum catalysts. Hybrids still use them, but pure electric cars do not. In Europe, hybrid output passed pure gas engine cars for the first time, cutting platinum use by 5 percent there. North America saw a 3 percent fall to 116 thousand ounces, with truck and off-road sectors pulling it down despite some light car gains. Details appear in the full WPIC Platinum Quarterly Q3 2025 report at https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf.
Looking to 2026, demand could fall another 3 percent to 2,915 thousand ounces. This ties to even lower light-duty car output and engines getting smaller, which need less platinum. The shift to electric vehicles slows platinum use in cars overall. Yet some car companies plan to keep making hybrids and gas engines longer than before. Tesla sales dipped, and U.S. policy changes like ending EV tax credits might ease the electric push. This view matches WPIC forecasts noted in a Streetwise Reports article at https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html.
Other factors balance things out. Hydrogen tech offers hope. Platinum powers fuel cells in trucks, buses, and machines that make green hydrogen from water. WPIC sees this growing fast, by 875 to 900 thousand ounces by 2030. It could offset car losses over time. Supply stays tight, down 2 percent in 2025 to 7,129 thousand ounces, mostly from mines. This leaves a market deficit of 692 thousand ounces for 2025, per PR Newswire coverage at https://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.html.
Trade issues like U.S. tariffs hurt exports and construction, but less tension in 2026 might free up stored platinum. Jewelry demand jumps 7 percent to 2,157 thousand ounces in 2025, led by China, helping total platinum needs. Automotive still makes up 29 to 42 percent of all demand. Mining Weekly echoes this at https://www.miningweekly.com/article/balanced-2026-platinum-market-forecast-dependent-on-global-trade-tension-let-up-2025-11-18. Kitco adds that 2026 balance won’t solve long-term shifts away from car catalysts, as in their report at https://www.kitco.com/news/article/2025-11-19/balanced-platinum-market-2026-wont-fix-fundamental-long-term-issues-wpic.
Sources
https://platinuminvestment.com/files/954835/WPIC_PR_PQ_Q3_2025_20251119.pdf
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html
https://www.prnewswire.com/news-releases/platinum-market-to-end-2025-with-692-koz-deficit-potential-easing-of-tariff-fears-leads-to-a-more-balanced-platinum-market-in-2026-302619223.html