Hydrogen is often described as a long-term source of new platinum demand. Platinum is an excellent catalyst for the reactions that split water into hydrogen and recombine hydrogen with oxygen to produce electricity. This article explains where platinum is used, why the opportunity attracts attention, and why forecasts vary so widely.
Fuel Cells
Proton exchange membrane (PEM) fuel cells use platinum-based catalysts on their electrodes to convert hydrogen and oxygen into electricity, with water as the only exhaust. They power fuel cell electric vehicles such as the Toyota Mirai and Hyundai Nexo, as well as buses, trucks, forklifts and backup power systems.
The amount of platinum per vehicle has fallen substantially as manufacturers have improved catalyst designs; estimates for current passenger cars are generally in the range of tens of grams, more than a typical gasoline car’s catalytic converter. Heavy-duty trucks need more power and therefore more platinum per vehicle.
Electrolyzers
PEM electrolyzers run the process in reverse, using electricity (ideally renewable) to split water into “green” hydrogen. They use platinum on one electrode and iridium — another platinum group metal — on the other. Alkaline electrolyzers, a competing technology, generally do not need platinum, so the technology mix matters for demand.
Why It Matters for Platinum
- A new demand source as autocatalyst demand faces long-term pressure from battery electric vehicles.
- Policy support: the EU’s 2020 hydrogen strategy targeted 40 GW of electrolyzer capacity by 2030, and countries including Japan, South Korea and China have national hydrogen roadmaps.
- Long time horizons: the impact, if it materialises at scale, is mostly expected from the 2030s onward.
The Uncertainties
- Thrifting: engineers keep reducing the platinum needed per kilowatt, which offsets volume growth.
- Cost and competition: green hydrogen is still expensive versus fossil-based hydrogen, and battery vehicles dominate the passenger EV market.
- Project delays: many announced hydrogen projects have been delayed, scaled back or cancelled as costs rose, so headline targets have often run ahead of actual installations.
- Small base: hydrogen currently accounts for a small share of total platinum demand compared with autocatalysts, industry and jewelry.
Bottom Line
Hydrogen technologies are a genuine and growing use for platinum, but the size and timing of the demand are highly uncertain. Industry bodies such as the World Platinum Investment Council and Johnson Matthey publish regular demand estimates that are worth consulting for current figures.
Disclaimer: This article is for general information and education only. It is not investment, tax or financial advice, and it does not recommend buying or selling any asset. Precious metal prices are volatile; past performance does not predict future results. Figures are approximate and should be checked against current primary sources.