Hydrogen Economy Platinum Demand
Platinum plays a key role in the growing hydrogen economy. This precious metal acts as a catalyst to split water into hydrogen and oxygen in electrolyzers and to power fuel cells that turn hydrogen back into electricityhttps://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year. Green hydrogen, made using renewable energy, needs platinum to work efficiently in these devices.
Demand for platinum in hydrogen applications is rising fast. The World Platinum Investment Council estimates this sector could add 875,000 to 900,000 ounces of demand each year by 2030https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf. Stationary hydrogen uses, like electrolyzers and fuel cells for power plants, are projected to hit 68,000 ounces in 2026, a 20 percent jump from 2025https://www.h2-view.com/story/hydrogen-to-drive-meaningful-platinum-use-but-bottlenecks-lie-with-other-pgms-and-clean-power/2134951.article/.
Countries like China are pushing hydrogen hard as part of their clean energy plans. They classify platinum as a strategic mineral because it is vital for proton exchange membrane electrolyzers and fuel cell stacks in buses, trucks, ships, and factorieshttps://www.cruxinvestor.com/posts/chinas-strategic-critical-mineral-classification-of-platinum-its-investment-implications-for-global-pgm-supply-pricing-and-emerging-developers. Europe and North America also see growth, though funding issues slow some projectshttps://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf.
This hydrogen push comes at a time when platinum supply struggles. South Africa produces about 80 percent of the world’s platinum, but faces power shortages, old mines, and high costshttps://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year. Experts predict a market deficit of 692,000 ounces in 2025, with total demand near 7.8 million ounceshttps://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf. Recycling will help some, but not enough to close the gaphttps://www.heraeus-precious-metals.com/en/company/press-and-news/heraeus-precious-metals-forecast-2026/.
Hydrogen could replace natural gas in hard-to-clean industries like steel and aviation. Platinum helps make this shift possible by enabling clean hydrogen production and usehttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it. While electric vehicles cut some auto demand for platinum, hydrogen fuel cell vehicles and industrial uses fill the gap.
Prices reflect this tight market. Forecasts see platinum averaging $1,770 per ounce by end of 2025 and climbing higher in 2026https://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year. The hydrogen economy adds long-term strength, as projects once built lock in platinum needs for decadeshttps://www.cruxinvestor.com/posts/chinas-strategic-critical-mineral-classification-of-platinum-its-investment-implications-for-global-pgm-supply-pricing-and-emerging-developers.
Sources
https://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://www.h2-view.com/story/hydrogen-to-drive-meaningful-platinum-use-but-bottlenecks-lie-with-other-pgms-and-clean-power/2134951.article/