How Is China Embracing Platinum Despite Not Mining It?
China has emerged as a dominant force in the platinum market, despite having no domestic platinum group metals (PGMs) reserves. This strategic paradox highlights China's forward-thinking approach to securing critical minerals energy transition for its growing green economy. Shanghai Platinum Week, now in its fifth year, has become the cornerstone of China's platinum strategy, bringing together producers and consumers in a showcase of economic diplomacy.
Chinese investment in platinum surged by 100% last month, according to data from the Shanghai Gold Exchange, demonstrating remarkable market confidence despite global economic headwinds. This investment spike coincides with China's accelerating transition toward cleaner technologies and stricter emissions standards.
China's Strategic Interest in Platinum
Shanghai Platinum Week has evolved from a modest industry gathering to a critical annual event that shapes global platinum market dynamics. The 2025 edition saw unprecedented participation, with virtually every major South African platinum mining company in attendance, alongside high-level Chinese government officials and international investors.
"China wants to ensure it has enough platinum for its green revolution… tightening emission regulations will require more platinum group metals," notes Martin Creamer, Editor at Mining Weekly.
The Minerals Council South Africa sent a substantial delegation, underscoring the strategic importance of China-South Africa trade relations in the PGM sector. South Africa's Shanghai Consul General, Phuti Tsipa, played a pivotal role in facilitating discussions that "secure supply chains for China's hydrogen economy."
China's approach includes:
- Establishing direct relationships with South African producers
- Creating financial instruments that incentivize platinum imports
- Developing technical standards that favor PGM-intensive technologies
- Building strategic reserves of platinum for future industrial needs
Applications Driving Chinese Platinum Demand
China's platinum demand is diversifying rapidly across multiple sectors:
Automotive Sector
The implementation of China VI emission standards (equivalent to Euro 7) has dramatically increased platinum loadings in catalytic converters by approximately 30% per vehicle. With China manufacturing over 30 million vehicles annually, this represents a substantial demand driver.
Jewelry Manufacturing
China remains the world's largest platinum jewelry market, accounting for nearly 40% of global platinum jewelry demand, according to Johnson Matthey's PGM Market Report (May 2025). Chinese consumers increasingly view platinum jewelry as both a luxury item and investment vehicle.
Investment Demand
Chinese investors have embraced platinum as an alternative precious metal investment. The Shanghai Gold Exchange now facilitates platinum trading volumes that rival those of gold on some days, with retail investors particularly active through platinum ETFs and physical bars.
Green Hydrogen Technologies
Perhaps most significantly, China's National Development and Reform Commission has set ambitious targets of 200,000 tonnes per year of green hydrogen production by 2030, which will require approximately 1.5 million ounces of platinum for electrolyzers alone.
This demand diversity creates a robust foundation for long-term market growth, with the China Hydrogen Alliance projecting platinum demand to grow at a 15% CAGR through 2030, significantly outpacing the global average of 5%.
What Makes the Coega Green Ammonia Project Significant?
The Coega Green Ammonia project represents a landmark development in Africa's green hydrogen ecosystem. Located in Nelson Mandela Bay, South Africa, this initiative has now reached its request for proposals (RFP) phase—the penultimate step before final investment decision (FID). With global interest intensifying, the project exemplifies South Africa's potential to become a green energy powerhouse.
Project Leadership and Structure
The project is spearheaded by Thulani Gcabashe, whose credentials as former Eskom CEO and Standard Bank chairperson bring considerable gravitas to the initiative. Gcabashe developed the project through his renewable energy firm, BuiltAfrica, which formed a strategic partnership with UK-based Hive to create Hive Hydrogen South Africa.
This public-private partnership structure has enabled the project to secure:
- Government support through the Strategic Integrated Projects (SIP) program
- International financing from development finance institutions
- Technical expertise from global engineering firms
- Export agreements with multiple international off-takers
The $5.8 billion investment for Phase 1 makes this one of Africa's largest green energy projects. When fully operational, the facility will produce 780,000 tonnes of green ammonia annually, using renewable electricity to power platinum-catalyzed PEM electrolyzers that generate hydrogen.
"Coega will position South Africa as a key clean-fuel exporter for global shipping," states Thulani Gcabashe, emphasizing the project's strategic importance in decarbonizing maritime transport.
International Interest in Project Development
The RFP phase has attracted an impressive roster of international contractors eager to participate in this transformative project:
- European engineering firms: Companies like Thyssenkrupp, Siemens Energy, and Technip Energies have submitted comprehensive proposals.
- UK contractors: British firms, supported by UK Export Finance guarantees, have presented competitive bids.
- Far East participants: Japanese and Korean engineering giants have shown interest, particularly given their countries' green ammonia import strategies.
This international competition has yielded proposals with cutting-edge technologies and competitive pricing, enhancing the project's economic viability. The UK Department for Energy Security has noted that "Coega's ammonia can decarbonize 5% of Europe's maritime fuel by 2030."
Economic Impact and Export Potential
The Coega Green Ammonia project will deliver substantial economic benefits to South Africa:
- Job creation: 3,500 construction jobs during the build phase and 400 permanent positions once operational
- Skills development: Training programs for local communities in renewable energy and chemical processing
- Infrastructure enhancement: Port upgrades and renewable energy installations
- Industrial diversification: Establishment of South Africa in the green fuels value chain
Japan's IHI Corporation has already signed a Letter of Intent to purchase 300,000 tonnes of green ammonia annually, demonstrating strong export demand. This early off-take agreement enhances project bankability and provides revenue certainty.
With FID expected by Q4 2025 and operations scheduled to commence in 2028, the Coega project represents a pivotal milestone in South Africa's just energy transition, leveraging the country's abundant renewable resources and industrial capabilities.
How Can Palladium Improve Water Treatment Efficiency?
A groundbreaking research announcement from the Palladium Center has revealed palladium's remarkable potential to revolutionize water treatment processes. This discovery, made three months after initial findings were presented at South Africa's PGM Industry Day in April 2025, could dramatically reduce operating costs for municipal water treatment facilities worldwide while creating new demand for South Africa's abundant palladium resources.
Palladium Center's Research Breakthrough
The Palladium Center, a dedicated research institution focused on expanding applications for platinum group metals, has been systematically investigating non-automotive uses for these precious metals. Their latest breakthrough demonstrates how palladium can address one of humanity's most fundamental needs: clean water.
"Pd-electrocatalysis oxidizes pathogens at lower voltage (1.2V) versus traditional chlorine methods (2.5V)," researchers from the Palladium Center reported in the June 2025 edition of Water Research.
This discovery comes at a critical time when water security concerns are mounting globally, and traditional treatment methods face challenges related to energy consumption, chemical use, and effectiveness against emerging contaminants.
The Minerals Council South Africa has highlighted this research as "diversifying palladium use beyond autocatalysts," providing crucial mining innovation trends for market stability as automotive applications evolve with electrification.
Technical Advantages of Palladium in Water Treatment
The technical benefits of palladium-based water treatment are multifaceted:
- Energy efficiency: Palladium-coated electrodes reduce energy consumption by 40% compared to conventional disinfection methods
- Cost reduction: Lower energy requirements translate to operational savings of 30% for municipal water treatment plants
- Treatment effectiveness: Palladium-catalyzed processes eliminate a broader spectrum of contaminants, including pharmaceuticals and microplastics
- Chemical reduction: Decreased need for chlorine and other treatment chemicals, reducing environmental impact
The mechanism behind this efficiency involves palladium nanoparticles generating hydroxyl radicals (•OH) that effectively inactivate microbial contaminants at lower voltage requirements than traditional methods.
A comparison of water treatment technologies shows palladium's advantages:
| Treatment Method | Energy Consumption | Pathogen Removal | Chemical Requirements | Operational Cost |
|---|---|---|---|---|
| Chlorination | High | Good | High | Moderate |
| UV Disinfection | Moderate | Good (limited duration) | Low | Moderate |
| Ozone | Very High | Excellent | Moderate | High |
| Palladium Electrodes | Low | Excellent | Very Low | Low |
Economic Implications for South Africa
eThekwini Municipality has already implemented a pilot program using palladium electrodes, reporting annual water treatment cost savings of R8.6 million while improving water quality metrics.
The global implications for South Africa's palladium producers are substantial:
- Market diversification: Reduced dependence on automotive demand as vehicle electrification advances
- Stable demand growth: Water treatment could absorb 500,000 ounces of palladium annually by 2030
- Value-added manufacturing: Opportunity to produce palladium-coated electrodes domestically
- Technology export: South African water treatment expertise becoming an exportable service
As water scarcity intensifies globally, particularly in developing regions, this palladium application represents both an environmental solution and economic opportunity for South Africa's mining sector.
What New Applications Are Being Developed for Platinum Group Metals?
The platinum group metals (PGMs) industry is experiencing a renaissance of innovation, with researchers and manufacturers discovering novel applications that extend far beyond traditional automotive catalysts. These developments are creating new demand streams that promise to fundamentally reshape the PGM market landscape.
Expanding PGM Applications
At Shanghai Platinum Week, industry leaders highlighted the accelerating pace of PGM innovation. The phrase "daily discoveries" was used repeatedly to characterize the current research environment, with applications emerging across diverse sectors:
Medical Technologies
- Ruthenium-106: Now being used in brachytherapy devices for precision treatment of eye cancers
- Platinum complexes: New Pt(II) compounds showing effectiveness against drug-resistant tumors
- Iridium compounds: Emerging as photosensitizers for targeted photodynamic cancer therapies
- Rhodium isotopes: Applications in nuclear medicine for diagnostic imaging
"Medical radiotherapy devices now use ruthenium-106 for eye cancer treatment with remarkable precision and reduced side effects," explains Dr. Jonathan Butler of the World Platinum Investment Council.
Electronics and Computing
- Ruthenium oxide coatings: Enhance SSD durability by 40%, according to Samsung's Q1 2025 Technical Report
- Palladium nanowires: Used in Apple's M4 chips for 20% faster conductivity
- Rhodium contacts: Improving reliability in mission-critical aerospace systems
- Iridium-based memory: Research into ultra-high-density storage solutions
Energy Applications
- Hydrogen fuel cells: Requiring 0.3-0.5g platinum/kW according to US Department of Energy 2025 targets
- Electrolyzers: PEM designs using platinum and iridium catalysts
- Battery technologies: Platinum catalysts in next-generation lithium-air batteries
- Solar applications: Ruthenium-based dyes improving efficiency in certain photovoltaic designs
Research and Development Initiatives
The acceleration in PGM applications stems from coordinated research efforts across multiple organizations:
- The Palladium Center: Dedicated to expanding applications for palladium beyond traditional uses
- University partnerships: Major mining companies funding research chairs at institutions globally
- Government initiatives: National research foundations prioritizing PGM research
- Industry consortia: Collaborative efforts to develop standards and applications
Sibanye-Stillwater's R&D Head revealed they are "developing iridium-based catalysts for blue ammonia cracking," showcasing how producers are actively involved in downstream application development.
The electronics sector shows particular promise, with PGM demand growth projected at a CAGR of 12% between 2023-2030 according to Statista, driven by demands for higher performance and reliability in advanced computing systems.
Strategic Importance to South Africa's Economy
For South Africa, which produces approximately 75% of the world's platinum and holds similar dominance in other PGMs, these new applications represent crucial economic opportunities:
- Economic diversification: Reduced dependence on traditional automotive demand
- Value chain development: Potential for domestic manufacturing using locally-produced PGMs
- Research leadership: Positioning South African institutions at the forefront of PGM innovation
- Export expansion: Higher-value PGM products rather than raw materials
A particularly promising example is HyET's fuel cells using South African platinum, which now power 50% of Norway's hydrogen ferry fleet—demonstrating how South African resources can enable green transportation globally.
As global research continues to unlock new PGM applications, South Africa's resource advantage positions it to benefit substantially from the expanding technological applications of these versatile metals.
How Is the Green Hydrogen Revolution Affecting Platinum Demand?
The global transition toward green hydrogen represents one of the most significant demand drivers for platinum group metals in decades. As countries race to decarbonize their economies, platinum's critical role in hydrogen technologies is creating substantial new market opportunities for producers.
Platinum's Role in Green Hydrogen Production
Platinum serves as an indispensable catalyst in proton exchange membrane (PEM) electrolyzers—the devices that split water into hydrogen and oxygen using renewable electricity. These systems currently require between 0.8-1.2 grams of platinum per kilowatt according to the International Platinum Association's 2025 Hydrogen Report.
The technical advantages of platinum catalysts include:
- Higher energy efficiency (85% for platinum-based PEM electrolyzers versus 70% for alkaline systems)
- Greater operational flexibility to match variable renewable energy inputs
- Faster response times for grid-balancing services
- Production of higher-purity hydrogen suitable for fuel cells
China's commitment to green hydrogen as part of its emissions reduction strategy has particular significance for the platinum market. As China's strategic plan to scale up green hydrogen notes, "China's green hydrogen plans will require massive platinum volumes," creating sustained demand for South African exports.
The platinum intensity of hydrogen technologies creates a compelling growth trajectory:
| Hydrogen Technology | Platinum Loading | Market Growth (CAGR 2025-2030) | Annual Pt Demand by 2030 |
|---|---|---|---|
| PEM Electrolyzers | 0.8-1.2g/kW | 63% | 1.8 million oz |
| Fuel Cells (Transport) | 0.3-0.5g/kW | 42% | 1.1 million oz |
| Fuel Cells (Stationary) | 0.4-0.6g/kW | 35% | 0.3 million oz |
| Combined Impact | 3.2 million oz |
Market Implications for South African Producers
South Africa, producing approximately 75% of global platinum according to USGS Mineral Commodity Summaries (January 2025), stands to benefit tremendously from hydrogen-driven demand growth. This positioning creates multiple strategic advantages:
- Supply security premium: As a stable producer of a critical mineral, South African platinum may command premium pricing
- Vertical integration opportunities: Potential to manufacture electrolyzers using domestically-produced platinum
- Investment attractiveness: Improved long-term outlook supporting capital allocation to South African mining
- Price stability: Diversified demand reducing market volatility historically associated with automotive cycles
A notable example of this emerging opportunity is the Sino-South African joint venture between Sinopec and Impala Platinum, which supplies catalysts for China's 260MW Kuqa green hydrogen plant in Xinjiang province. This collaboration demonstrates how South Africa can participate throughout the hydrogen value chain.
Global Green Hydrogen Development Timeline
The green hydrogen sector is developing along a clear timeline that shapes platinum demand projections:
2023-2025: Foundation Phase
- Demonstration projects establishing technical viability
- Policy frameworks creating investment certainty
- Initial deployments in industrial applications
2026-2030: Scale-up Phase
- Mass manufacturing reducing electrolyzer costs
- Integration with renewable energy projects
- Growing adoption in heavy transport and industry
2031-2035: Mainstream Adoption
- Widespread use in shipping and aviation
- Integration with existing gas infrastructure
- Hydrogen becoming a global commodity
The International Energy Agency's Net Zero Roadmap (2025) projects that "global electrolyzer capacity must grow 100x by 2030, driving 3.2Moz annual Pt demand." This growth trajectory suggests platinum prices could reach $1,800/oz by 2030 according to Citi Research's Commodity Outlook, representing significant upside from current levels.
For South African platinum producers, the green hydrogen revolution presents a generational opportunity to expand markets, increase value, and contribute
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