Is Platinum About to Take Off?

The expanding hydrogen economy is providing substantial support for platinum, with the year 2024 expected to hold significant promise for both alternative fuel and the precious metal. Analysts from the World Platinum Investment Council have suggested that platinum-based hydrogen technology will play a pivotal role at the 2024 Summer Olympic Games in Paris, France. Toyota, the global mobility partner of the International Olympic Committee (IOC) and the International Paralympic Committee (IPC), has unveiled its comprehensive transportation plans for the event, featuring ten diverse hydrogen fuel-cell applications, highlighting a hydrogen ecosystem, and promoting the expansion of refueling infrastructure.

Toyota's commitment to hydrogen as a cornerstone for a low-carbon and sustainable society is evident in its vision to build a sustainable hydrogen ecosystem during the Paris 2024 Olympics. This vision involves showcasing hydrogen solutions across a wide range of applications, with approximately 500 hydrogen-powered vehicles set to be deployed during the games, including buses, trucks, boats, and forklifts. Toyota will also feature a fleet of approximately 176 plug-in hybrid electric vehicles, incorporating platinum group metals (PGMs) in catalytic converters to reduce greenhouse gas emissions.

The growth of the hydrogen economy presents two significant opportunities for platinum. Firstly, platinum serves as a crucial catalyst in electrolyzers used for hydrogen production, facilitating the separation of hydrogen and oxygen molecules in water. Secondly, the fuel-cell technology, which heavily relies on platinum, is the dominant commercial choice within the transportation sector, with few viable alternatives on the horizon. Commodity analysts at Bank of America emphasized platinum's potential, noting that the hydrogen economy is expanding at a rate 3.5 times faster than initially predicted. They anticipate that platinum demand from the hydrogen economy could reach 2.4 million ounces by 2030.

Despite this growth potential, the platinum market continues to experience subdued demand, with prices remaining below $900 per ounce. In January, platinum futures were trading at $872.90 per ounce, reflecting a nearly 3% decrease for the day.