PGM
Platinum Group Metals
Six sister metals from two corners of the Earth — irreplaceable catalysts for the combustion age and the hydrogen one.
The platinum group metals — platinum, palladium, rhodium, ruthenium, iridium, and osmium — occur together in nature, share extraordinary catalytic properties, and come overwhelmingly from two places: South Africa’s Bushveld Complex and Russia’s Norilsk region. Their defining application is the autocatalyst, which strips pollutants from vehicle exhaust and consumes the majority of palladium and rhodium supply. But the group’s future is being rewritten by hydrogen: platinum and iridium are essential to PEM electrolysers and fuel cells, positioning PGMs as a bridge from the combustion era to the hydrogen economy.
Key Applications
- Autocatalysts for gasoline and diesel emissions control
- PEM electrolysers and hydrogen fuel cells (Pt, Ir, Ru)
- Industrial, glass, and chemical process catalysts
- Jewelry, investment bars, and medical/electronic uses
Key Facts
- Metals in group
- 6
- Platinum supply leader
- South Africa (~70%)
- Palladium supply leader
- Russia (Norilsk)
- Dominant end use
- Autocatalysts
- Emerging demand
- Hydrogen (PEM) economy
The platinum group metals family
Market Dynamics
PGM markets are small, opaque, and violently cyclical — rhodium’s spike above $29,000/oz in 2021 and subsequent collapse is the emblematic example. The central dynamic today is the combustion-to-EV transition: battery EVs use no autocatalyst, so palladium and rhodium face structural demand erosion, while hybrids (which run catalyst-heavy) provide a longer runway than bears expected. Platinum, less exposed to gasoline autocatalysts, gains from substitution into palladium’s role and from jewelry and investment demand. Supply discipline matters as much as demand: South African producers face deep-shaft cost inflation and power interruptions, and persistent low prices have pushed parts of the industry below water, setting up the classic commodity response of curtailment.
Supply Chain
Supply concentration is the group’s defining risk: South Africa produces around 70% of the world’s platinum and most of its rhodium and iridium; Russia leads in palladium via Norilsk Nickel — a sanctions-sensitive dependency; Zimbabwe’s Great Dyke is the only other primary district of scale. Mining is deep, labor-intensive, and electricity-dependent, exposed to South Africa’s grid instability. Recycling from spent autocatalysts is the crucial second supply pillar, covering a substantial share of demand and growing as the catalyst-equipped vehicle fleet ages into scrappage.
Outlook
The next decade splits the group: palladium and rhodium face managed decline as EV penetration erodes autocatalyst demand, cushioned by hybrids and recycling economics; platinum’s balance looks tighter, with substitution gains, South African supply risk, and hydrogen demand building from a small base; iridium and ruthenium are the quiet leverage plays on PEM electrolyser deployment. Watch EV-versus-hybrid mix, South African power reliability, Russian export flows, and electrolyser installation rates as the signals that matter.