Platinum Demand Skyrocketing in Hydrogen Technologies
Increased excitement about hydrogen fuel is boosting the requirement for platinum, a key component in hydrogen cells.
Get ready for a significant increase in the global demand for platinum, particularly in the field of hydrogen technologies. According to a forecast by Heraeus, the demand for platinum is estimated to skyrocket sevenfold over the next decade, jumping from 1.9 tonnes in 2021 to a staggering 13.1 tonnes in 2030.
The driving force behind this surge is the booming hydrogen economy. Green hydrogen, produced using renewable energy sources like wind and solar power, is a key player in the energy transition. Platinum is a crucial catalyst in splitting water into hydrogen and oxygen, and it's essential for fuel cells that convert hydrogen and oxygen into electricity.
Despite the expected increase in demand, the price of platinum has stayed relatively stable. An ounce of platinum rarely exceeds $1,000 and currently trades at $875. Hans-Günter Ritter, head of precious metal trading at Heraeus, assures there are no supply concerns, with an impressive surplus of more than one million ounces, equivalent to about one-sixth of the total market expected for 2020.
Most of the world's raw material production comes from South African mines. But remember, the platinum market isn't just about numbers; it's about the future of clean energy. As we transition towards a more sustainable world, the demand for platinum in hydrogen technologies is poised to play a significant role.
The Platinum Market: A Closer Look
- Fuel Cells and Electrolysers: Platinum is critical in fuel cells and electrolysers, enhancing their efficiency and durability. The hydrogen MEA market, which includes fuel cells, is projected to grow rapidly, with a market size expected to reach $29.6 billion by 2035 from $1.7 billion in 2024.
- Hydrogen Fuel Cell Systems: Advancements in fuel cell technology, such as longer-lasting fuel cell stacks, are expected to further boost demand.
Investing in a Green Future
The adoption of hydrogen fuel cell systems in various sectors, including transportation, power generation, and industrial processes, is on the rise, fueling demand for platinum. The growth of the hydrogen truck market is a prime example of this trend, with potential market size analysis stretching up to 2034.
Despite the growing need for platinum, challenges remain. Supply of critical minerals can be an issue, as platinum is often extracted alongside other metals, and its market can be influenced by broader mining and environmental factors.
As we embark on a greener future, the robustness of the platinum supply chain will be crucial to meet the increased demand and address the challenges that lie ahead. Platinum: it's not just a precious metal; it's an investment in a cleaner, more sustainable future.
- The growth of the hydrogen truck market, a prime example of the rising adoption of hydrogen fuel cell systems, is projected to increase the demand for platinum, especially in the context of the hydrogen MEA market, which includes fuel cells and is anticipated to reach $29.6 billion by 2035.
- Platinum's critical role in enhancing the efficiency and durability of fuel cells and electrolysers makes it a vital component in various sectors, including transportation, power generation, and industrial processes, resulting in a boost in platinum demand.
- The investment landscape in a greener future requires a focus on the robustness of the platinum supply chain, given the increasing demand and challenges associated with the supply of critical minerals, often found alongside other metals, as well as broader mining and environmental factors.
