UK Zero-Emission Vehicle Review Could Support Palladium Demand

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] Platinum’s constrained supply and broad industrial applications could strengthen its position as a potential “value metal” during the next commodity cycle. The World Platinum Investment Council (WPIC) expects the platinum market to remain in deficit for a fourth consecutive year in 2026, with demand forecast to exceed supply by about 297,000 oz. Above-ground inventories are projected at roughly 1.75 million oz, equivalent to less than three months of global demand. Supply growth is also structurally limited, with new production requiring substantial capital and potentially 8–12 years to reach full output, leaving the market vulnerable to stronger demand and price volatility. Beyond automotive applications, platinum demand is supported by industrial uses including hydrogen technologies, fuel cells and electrolysers, while investment demand is also strengthening. Physical bar and coin demand is forecast to reach about 718,000 oz in 2026, a six-year high, according to WPIC. However, platinum remains exposed to risks including weaker global industrial activity, declining automotive demand from the transition to battery-electric vehicles, increased recycling at higher prices and potential investor profit-taking. The combination of supply constraints, industrial demand and renewed investment interest could support a higher valuation for platinum, although its price outlook remains sensitive to economic and market conditions.

[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.