CRAIG MILLER: How the future will run on platinum group metals

Combating climate change is the defining challenge of our generation. However, the transition to a greener world is complex and multifaceted — just like the role of platinum group metals (PGMs).

It is true that transport solutions remain one of the significant areas of relevance for PGMs, which provide a reduced or zero carbon alternative to traditional combustion engines, but the incredible versatility of these metals means their application stretches far beyond transportation.

This is why we continue to support and develop diversified use cases for PGMs, from advanced batteries to cutting-edge medical technologies, jewellery and even foodtech innovations.

Let’s start with the role PGMs already play in creating a cleaner world. Every day PGMs in catalytic converters in internal combustion engines (ICEs) are working hard to reduce harmful emissions from the millions of vehicles on our roads.

While battery electric vehicles (BEVs) have seen early adoption in certain markets, their growth is now slowing due to consumer concerns about second-hand prices, range, charging times and infrastructure, and likely policy changes.

In their place, we’re seeing that demand for hybrids and plug-in hybrids — which need current loadings of PGMs in their catalytic converters — is on the rise as carmakers adjust their drivetrain strategies to address changing consumer demand.

In fact, global sales of hybrids increased their market share by more than two percentage points in the first half of 2024 on the back of a 7% rise in 2023, with further growth expected. As a result, total PGM demand for the automotive sector rose 8% in 2023 to 13.1-million ounces, its second highest total.

This underscores the pivotal role hybrids and dual-fuel systems will play in the transition to greener transport, ensuring that PGMs continue to be indispensable to the automotive industry. 

Then there are hydrogen fuel cells, which I believe are one of the most exciting opportunities for PGMs in the medium and longer term. The reason for this is simple: platinum is a crucial element in these fuel cells, which are emerging as a viable, scalable alternative to battery power.

Furthermore, the constituent parts of hydrogen fuel cells are more readily available than many so-called battery metals. This means they have the potential to transform whole industries, especially those where battery power is less practical. Fuel cell EVs, for example, offer long ranges and quick refuelling times — essential when constant use is required, such as municipal buses or commercial vehicles.

This makes them an ideal complement to BEVs. If fuel cell EVs capture just 10% of the global light-duty vehicle market, demand for platinum could reach about 6-million ounces a year, which is about half of the current automotive PGM demand. 

Beyond the automotive sector, governments around the world are investing heavily in hydrogen infrastructure, with major economies such as the EU, China and Japan leading the charge. Just last month, for instance, the EU announced it had committed about R490m in grants to support the development of SA’s emerging green hydrogen industry.

Hydrogen demand could reach 500-million tonnes a year by 2050, according to World Hydrogen Council estimates, depending on global climate ambitions and the development of sector-specific activities, energy-efficiency measures, direct electrification and the use of carbon-capture technologies.

In SA, government projections suggest a green hydrogen economy could boost the country’s GDP by 3.6% by 2050, generating hundreds of thousands of jobs.

PGMs are also opening doors to new possibilities in technology and industry. And we are playing our part, investing in market development to ensure PGMs remain critical to the transition to a cleaner, greener and more sustainable future. 

For instance, in the jewellery sector we have used artificial intelligence (AI) to develop a unique 95% platinum metal alloy called Inoveo, which is easier for jewellers to work with in terms of complex designs. This is no small feat. With demand potentially exceeding 300,000oz a year, our initial success in the US is paving the way for a global rollout, starting with India.

In the world of battery technology we are also seeing breakthroughs that could revolutionise this industry. Here I’m referring to our work with lithium-ion battery technology, where we’ve demonstrated a 20% increase in energy density and a 40% reduction in the cost compared to lithium-sulphur batteries. If adopted on a large scale, this breakthrough could create a new wave of demand for palladium and platinum. 

PGMs are also being explored in emerging industries such as foodtech, where platinum slows down fruit and vegetable decay, extending the shelf life of food, thereby potentially reducing global food waste. In addition, platinum is a vital component used in a variety of medical devices, including pacemakers, catheters and stents due to its compatibility with human tissue.

Meanwhile, ruthenium-based memory chips could revolutionise data processing because the metal enhances energy efficiency — an increasingly crucial factor as the demand for AI and data processing grows. And in the circular economy PGMs could help convert wastewater into high-value chemicals.

Importantly, PGMs also hold profound significance for SA’s economy and society. Our country is blessed with the world’s greatest PGM resource endowment, with more than 80% of the world’s known reserves and resources. The PGM mining industry is a cornerstone of our economy — one of the largest sectors, employing almost 190,000 people and earning R90bn in export revenue.

The sector’s development, investment and transformation footprint extends deeply into the country, supporting jobs, infrastructure and community upliftment. Even as modernisation in mining advances, employment will continue to rise, potentially reaching more than 300,000 direct jobs by 2050, with another about 600,000 indirect jobs, according to estimates by the Minerals Council SA. These are not just numbers — they represent livelihoods, opportunities, and the future of our country. 

I’m the first to admit the road can be bumpy. The last couple of years have been tough for the PGM industry. Prices dropped 35% in 2023 and have remained stubbornly low into 2024. We have also faced cost pressures and geopolitical tensions. But challenges are nothing new in this industry. What defines us is how we respond. This is about positioning ourselves as resilient and responsible suppliers of these metals, enabling us to seize the many opportunities ahead.

The global energy transition is under way, and PGMs are vital to that shift. In fact, using more PGMs in catalytic converters is a proven way to offset the effect of having more ICE and hybrid engines for longer — while the world transitions to clean hydrogen, batteries and other fuel sources over time.

Now is the time for us to double down on our efforts. We believe in the versatility of PGMs, and are committed to expanding their use across diverse sectors, ensuring they play their role across a range of industries in the years to come. We’re embracing the growing demand for hybrid vehicles, pushing forward with fuel cell development and expanding PGM applications into new sectors.

As an industry, we must rise to the challenge and seize this global opportunity. We are standing on the edge of a new era, with PGMs playing a crucial role in building a greener, more sustainable future. 

• Miller is CEO of Anglo American Platinum.