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SMM Exclusive: Platinum for Hydrogen Energy Economy
iconAug 1, 2023 14:17
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.

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.




In 2020, the European Commission introduced the "Fit for 55" package as part of the European Green Deal, establishing targets for reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050.


By the end of 2021, the United States enacted the " Bipartisan Infrastructure Deal," which allocated $9.5 billion for hydrogen development and related infrastructure construction, providing a source of funding for the advancement of hydrogen energy.


In 2020, Japan announced its "Carbon Neutrality Action Plan," setting a goal to achieve carbon neutrality by 2050 and identifying hydrogen energy as one of the key means to attain this objective. Japan aims to increase hydrogen consumption to 300,000 mt/ year by 2030 and further increase it to 10 million mt/year by 2050.


In early 2021, China announced its "14th Five-Year Plan," designating hydrogen energy as a cutting-edge technology and emphasizing the need to formulate strategies for nurturing and accelerating the development of the hydrogen energy industry.


In 2023, India approved the "National Green Hydrogen Mission," allocating $2.4 billion to drive the development of green hydrogen energy. The mission aims to establish India as a global hydrogen hub and encourage key industrial sectors to achieve decarbonization.

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.

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