Stronger Demand for Platinum in Automotive Industry in 2023

SHANGHAI, Feb 28 (SMM) – In 2023, the challenges of the global supply chain will be gradually alleviated, and the total production of major vehicle models in the world will be about 82.38 million.

Platinum demand in the automotive sector is expected to increase in 2023 due to a gradual increase in vehicle production, tightening of heavy-duty vehicle emissions regulations in China and India, and growing platinum-palladium substitution.

The third quarter is normally the off-season for vehicle. Combined with the hot summer in the northern hemisphere, most manufacturers in Europe and the United States will shut down. And the vehicle output is at the lowest level in a year.

In Platinum Group Metals (PGMs) used per gasoline vehicle, platinum will account for 10% and palladium will account for 85%. For diesel vehicles, platinum will account for 80% and palladium will account for only 15%.

In terms of PGMs used per vehicle, fuel cells are a new development industry. And the usage per vehicle is about 27 g, about 7.9 g for heavy-duty diesel vehicles, about 6.1 g and 5.8 g respectively for light-duty and PHEV diesel vehicles, and 4-5 g for others.

The development of fuel cells is in its infancy, and the industry will have minimal impact on the demand for PGMs in the short term, but the medium and long-term outlook is promising.