Platinum's Supply Deficit and Diverse Industrial Uses May Elevate Its Value in Next Commodity Cycle

Craig Miller, CEO of Valterra Platinum, stated that artificial intelligencehas become an important tool to foster new applications and markets for platinum‑group metals. It can notably accelerate the R&D of various metal formulations and new‑type alloys, greatly shortening the development cycle of conventional materials. Although the current scale of relevant applications remains modest, the company sees substantial long‑term growth potential.

[SMM Flash] The UK’s review of its zero-emission vehicle mandate could provide some support for palladium demand if manufacturers receive greater flexibility over the pace of battery electric vehicle (BEV) adoption, according to Heraeus. BEVs accounted for 25% of UK new car registrations in the first half of 2026, below the 33% target under the current mandate, while hybrids and plug-in hybrids accounted for 37.7% and 13% respectively. Similar trends are evident in Europe, where hybrids held a 37.3% share of new registrations during the same period. Greater regulatory flexibility could extend demand for palladium-containing autocatalysts as consumers increasingly use hybrid vehicles during the transition towards BEVs. However, Heraeus notes that this would likely slow rather than reverse the longer-term decline in automotive palladium demand as vehicle electrification progresses. Palladium prices recently retreated after rising from about $1,150/oz in late June to nearly $1,400/oz in early August, with the metal currently testing resistance around $1,335/oz. Meanwhile, platinum has risen from approximately $1,550/oz in early July to above $1,900/oz, while rhodium, ruthenium and iridium were reported at around $9,200/oz, $1,745/oz and $8,300/oz respectively.

[SMM Flash] The International Platinum Group Metals Association (IPA) and European Precious Metals Federation (EPMF) have published a joint position paper calling for a market-compatible approach to potential European Union strategic reserves of platinum group metals (PGMs). The associations support EU efforts to strengthen critical raw material security but caution that PGMs have highly specialised markets and should not be treated like bulk materials. Platinum, palladium, rhodium, iridium and ruthenium differ significantly in market size, liquidity, recycling potential and supply risk. While platinum and palladium have liquid terminal markets, the other PGMs mainly trade through smaller bilateral markets where official purchases could cause disproportionate price increases or physical supply constraints. IPA and EPMF recommend prioritising international partnerships, stronger PGM recycling flows, targeted investment in secondary supply and certified private storage before establishing public stockpiles. If reserves are introduced, they call for metal-specific risk assessments, transparent acquisition and release rules, defined crisis triggers and close industry involvement. Europe has limited primary PGM mining capacity but is a major refining and recycling hub, recovering up to 95% of PGMs from collected spent automotive and industrial catalysts. The associations argue that combining international cooperation, targeted reserves, private storage and recycling-based buffers would improve European supply resilience while minimising disruption to specialised global PGM markets.