At PGM Energy our practitioners have worked for the major global mining, refinery and smelting companies, here is a short intro to the sector. Across The Platinum Group Metal (PGM) market refers to the global trade and demand for the six precious metals that make up the platinum group: platinum (Pt), palladium (Pd), rhodium (Rh), ruthenium (Ru), iridium (Ir), and osmium (Os). These metals are highly valued for their unique properties and various industrial applications, with the Automotive, Pharma and laterly Fuel Cell technology sectors being significant consumers.
PGM use in industry:
- Green Energy: PGM’s are central to emerging decarbonization technologies such as water electrolyzers for green hydrogen production and fuel cells for vehicles and stationary energy storage
- Automotive Catalysts: The largest consumer of PGMs is the automotive industry, where platinum, palladium, and rhodium are used in catalytic converters to reduce emissions. Stricter emission standards worldwide have driven demand for PGMs in this sector.
- Jewellery: Platinum and palladium are prized for their use in high-end jewellery due to their lustrous appearance and resistance to tarnish and corrosion.
- Electronics: PGMs are used in electronics, particularly in the production of electrical contacts and components due to their excellent conductivity and durability.
- Healthcare: Platinum has been used in a variety of medications and tools since the early 1970s. Due to its non-toxicity, the metal has also remained useful in the production of pacemakers, catheters, stents and even cancer therapies. According to the International Journal of Cancer Research and Treatment, platinum-based agents are used in more than 50% of the world’s anticancer drugs. It is estimated that 700 000 pacemakers are fitted each year around the world, a market that is likely to increase due to these socioeconomic factors.
- Chemical Industry: Metals used to support various chemical processes, including the production of nitric acid and in petrochemical catalysts.
The six PGMs are among the least abundant elements on earth and occur in only a few countries worldwide, with the majority of production and reserves in South Africa and Russia. To secure the supply chains for these clean energy technologies, as well as green hydrogen and chemical manufacturing, there is a need to secure supply through the secondary metals market. Recycling of PGMs from end-of-life products, such as catalytic converters, plays a critical role in the market. Recycling helps meet demand and reduces the environmental impact of mining.