Platinum producers eye fuel cell growth as demand for hydrogen vehicles lags
Major platinum miners look to fuel cell vehicles to revive demand, but battery electrics and hybrids still dominate the green car market.
Platinum producers are pinning hopes on a rise in fuel cell vehicle adoption to boost demand for the metal, as battery electric and hybrid cars continue to outsell hydrogen-powered models globally. Anglo American Platinum, Impala Platinum and Lonmin have all invested in fuel cell technology projects, with platinum serving as the catalyst in hydrogen fuel cells that generate electricity for vehicles.
Current figures show battery electrics and hybrids command a much larger share of the green car market than fuel cell vehicles. According to the International Council of Clean Transportation, hybrid and battery electric cars made up 1.8 percent of new car deliveries in the European Union in 2013, double the share from two years earlier. By contrast, fuel cell vehicles are projected to account for just 0.015 percent of global light vehicle production by 2025.
The platinum sector faces a stark choice. If battery electric vehicles become dominant, analysts estimate automotive platinum demand could fall from 3.4 million ounces today to 2.5 million ounces by 2050. If fuel cell vehicles gain traction and overtake battery electrics, demand could instead rise to 6.6 million ounces in the same period. The direction of the automotive market will determine whether platinum miners see recovery or further contraction.
Fuel cell hurdles slow platinum demand
Despite investment from platinum producers and manufacturers, fuel cell vehicles face significant barriers. Battery recharging is cheaper and charging infrastructure is more widespread than hydrogen refuelling stations, making battery electrics and hybrids more practical for most buyers. Even as companies like Hyundai, Honda, and Toyota invest in new hydrogen models and partnerships, the rollout of hydrogen infrastructure remains slow. Daimler’s CEO has publicly expressed doubts about the near-term prospects for fuel cells, citing similar concerns.
The platinum sector’s future in the automotive market now hinges on whether fuel cell technology can close the gap with battery electrics. Until hydrogen cars become more accessible and infrastructure expands, platinum miners may struggle to see the hoped-for surge in demand.
- Anglo American Platinum, Impala Platinum and Lonmin are backing fuel cell research.
- Fuel cell vehicles use platinum as a catalyst in their powertrains.
- Battery electrics and hybrids currently outsell hydrogen cars by a large margin.
