Platinum Demand From Automakers Explained
Platinum plays a key role in cars, especially in devices called autocatalysts. These are parts in a car’s exhaust system that clean harmful gases from engines. Automakers use platinum to make these catalysts work well because it helps turn pollutants like carbon monoxide and nitrogen oxides into less harmful substances like water and carbon dioxide.
Most platinum demand from automakers goes into vehicles with internal combustion engines and hybrids. These engines burn fuel and produce exhaust that needs cleaning. In 2025, global automotive demand for platinum is forecast at 3,020 thousand ounces, down 3% from the year before. Even with this drop, it sits 10% above the average of the past five years. This comes from a report by the World Platinum Investment Council, or WPIC, in their Q3 2025 Platinum Quarterly. You can read more details in their press release at https://platinuminvestment.com/files/954835/WPIC_PR_PQ_Q3_2025_20251119.pdf and full quarterly at https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf.
Why the slight decline in 2025? Fewer cars with traditional engines are being made as the world shifts toward electric vehicles. Light-duty cars like sedans and SUVs use less platinum due to smaller engines. Heavy-duty trucks and buses also see some pullback from high costs and slower projects. In the third quarter of 2025 alone, demand fell 2% to 721 thousand ounces, with Europe down 5% and North America off 3%.
Hybrids help keep demand steady. They mix electric power with gas engines, so they still need autocatalysts. For example, in Europe, hybrid production passed pure gas cars for the first time. This shift means platinum use holds up better than expected, even as full electrics grow.
Looking to 2026, automotive demand may drop another 3% to 2,915 thousand ounces. Lower car production and even smaller engines play a part. Yet experts note the electric vehicle push has slowed. Tesla sales dipped, and big carmakers plan to build more hybrids longer. Changes like ending EV tax credits in the US could ease the drop.
Platinum also fits into the hydrogen economy, a rising area for automakers. Fuel cell vehicles, like hydrogen trucks and buses, use platinum in fuel cells to make electricity from hydrogen and oxygen. Demand here could grow fast, up 875 to 900 thousand ounces by 2030. This offsets some losses from battery electrics. One source points out hydrogen fuel cell use jumped from 38 thousand ounces in 2013 to near 200 thousand now. Details on this trend appear in a Thor Metals Group article at https://thormetalsgroup.com/resource/december-12-2025-why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/.
Overall, automakers represent 29% to 42% of total platinum demand. Supply stays tight, with mines in South Africa facing issues, pushing prices up over 77% in 2025. This mix keeps platinum vital for cleaner engines amid changing car tech. Streetwise Reports covers the ascent through 2026 at https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html, and PR Newswire notes the 2025 deficit 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. Fortune discusses price drivers at https://fortune.com/article/current-price-of-platinum-12-16-2025/, and NAI 500 on highs at https://nai500.com/blog/2025/11/platinum-prices-hit-15-year-high-what-are-the-driving-forces/.
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