The hydrogen economy could quietly reshape platinum demand over the next decade, says WPIC

• Green hydrogen production increased six-fold from 50 kilotons to 300 kilotons between 2021-2025, while global electrolysis capacity expanded nine-fold from 0.6 to 4.9 gigawatts during the same period.
• WPIC estimates platinum demand from the hydrogen economy at roughly 90,000 ounces annually currently, with projections to reach approximately 400,000 ounces by 2030.
• Hydrogen is essential for industrial processes that cannot electrify, including steel production and fertilizer manufacturing, where switching from natural gas to green hydrogen could eliminate 8 tons of CO2 per ton of hydrogen produced.

Summary

Market Context: Platinum prices are struggling near $2,000/oz, currently trading at $1,925 (-2% daily, -2.5% weekly), as the EV market threatens traditional autocatalyst demand. However, the emerging hydrogen economy could provide critical new demand sources.

Key Findings from WPIC:

The World Platinum Investment Council (WPIC) identifies hydrogen as a major structural growth driver for platinum demand. Edward Sterck, WPIC's research director, speaking at London Platinum Week, emphasized that geopolitical factors—including energy insecurity and de-globalization—are accelerating hydrogen adoption.

Growth Metrics:

• Green hydrogen production increased 6x from 50 kilotons (2021) to 300 kilotons (2025)
• Global electrolysis capacity expanded 9x from 0.6 GW to 4.9 GW
• Fuel-cell vehicle fleet doubled to 103,000 vehicles
• Current platinum demand from hydrogen: ~90,000 oz annually
• Projected 2030 demand: ~400,000 oz (over 4x increase)

Industrial Applications:

Hydrogen is essential for heavy industry decarbonization, particularly steel and fertilizer production, which cannot transition to pure electrification. Current natural gas-based hydrogen production generates 8 tons of CO2 per ton of hydrogen, making green hydrogen environmentally critical.

Platinum plays a vital role in proton exchange membrane electrolyzers and fuel-cell technologies. WPIC expects "mid-double-digit growth rates" over the next five years, though with potential volatility.

Market Implications:

WPIC reports platinum markets face persistent supply deficits with above-ground inventories at just three months of supply. Beyond hydrogen, emerging applications (optical devices, e-glass, hard drives, silicone manufacturing) have added 500,000 oz of incremental PGM demand recently, though no single technology fully offsets declining autocatalyst demand.