SMM Exclusive: Platinum for Hydrogen Energy Economy

SHANGHAI, Aug 1 (SMM) –Hydrogen-powered vehicles, as the name suggests, are vehicles that use hydrogen as their energy source and convert the chemical energy produced by hydrogen reactions into mechanical energy to propel the vehicles. PEMFC batteries used in hydrogen-powered vehicles heavily rely on the rare metal platinum and serve two main purposes: 1) Proton Exchange Membrane Water Electrolyzers: the Proton-exchange Membrane Water Electrolyzers using platinum catalysts are the preferred method for producing "green hydrogen" using renewable energy sources. 2) Fuel cells: Hydrogen can also be used as an energy source in fuel cell systems to generate electricity. The reaction process in fuel cell systems is the reverse of hydrogen production, as it converts hydrogen gas into electrical energy.

Hydrogen-powered vehicles represent the ultimate goal for the automotive industry in terms of clean energy. Currently, governments worldwide are strategically positioning themselves in the field of hydrogen-powered vehicles. With the development of policies and investments, significant impacts are expected on the development of the hydrogen industry and the demand for related platinum group metals in 2023.

Currently, the demand for platinum in hydrogen production and fuel cell technology is uncertain, mainly due to the relatively less advanced state of the technology and a lack of understanding regarding the ultimate market size. Comparing it to the current platinum usage of 15-18g in new energy vehicles, it is speculated that the platinum usage in hydrogen-powered vehicles per unit will need to be at least 25g in the future.

As of the year 2023, the global sales of hydrogen-powered passenger vehicles remain below 50,000 units. Investors hold a positive outlook on the prospects of the hydrogen energy industry. Coupled with strong Chinese platinum imports and an expanding physical platinum supply-demand gap, it is expected to provide robust support to platinum prices. SMM predicts that the average platinum price in 2023 will rise to 245 yuan/g, compared to the levels in 2022. For more information on the platinum group metals industry, please stay tuned for the SMM Quarterly Industry Analysis Reports on Platinum and Palladium Metals.

The SMM Quarterly Industry Analysis Reports on Platinum and Palladium Metals provides rigorous price predictions for platinum and palladium by establishing a supply-demand forecasting model, incorporating various global macroeconomic factors, such as the US Fed interest rates, US CPI, US unemployment rate, latest production information from major global producers, and changes in global demand. The report also offers professional interpretations of current multifaceted information and analyzes the current and future trends in platinum and palladium metal prices. It can serve as an important reference for timely strategic deployments for businesses along the platinum and palladium industry chain. For more details, please contact Ms. Zhang Yuting (Tel 18701906042), the project manager of non-ferrous metal consulting. Welcome to subscribe to the SMM Quarterly Industry Analysis Reports on Platinum and Palladium Metals,which is available in both Chinese and English versions.

SMM is a leading information provider in the field of professional non-ferrous metal consulting in China. Our consulting products primarily include industry supply-demand price analysis, supply chain management analysis, market research, on-site research, professional industry reports, customized research reports, industrial planning documents, and industry whitepapers. These reports can be updated on a quarterly, semi-annual, or annual basis, depending on the specific situation.