Key Points
- Automotive demand drives platinum to an eight-year high by 2025.
- Platinum’s role in hydrogen economy positions it for future growth.
- India fuels jewelry demand as platinum rivals white gold.
Although supply shortages are a concern, platinum’s long-term demand prognosis is still favourable. Automotive demand will continue to be a major driver, and vehicle electrification is progressing more slowly than anticipated, according to Edward Sterck, Research Director at the World Platinum Investment Council (WPIC).Â
Platinum demand reaches new highs as vehicle electrification slows
Demand is being driven by hybrid cars, which need 10% to 15% more platinum than conventional internal combustion engines, as well as increasingly stringent emissions regulations. While above-ground supplies are anticipated to drop to 3.014 million ounces, automotive platinum demand is predicted to reach an eight-year high of 3.245 million ounces in 2025.
After years of decline, demand in the jewelry industry is now stabilizing.
With more fabrication for export and domestic demand driven by rising gold prices and focused marketing activities, India is the country with the fastest growth.
 Due to the economic parity between platinum and white gold, platinum is becoming more and more popular worldwide, especially for bridal jewellery. For 2025, a moderate 2% growth is anticipated.
According to mining weekly, in 2025, there will be a 9% drop in industrial demand for platinum, mostly as a result of fewer glass manufacturing capacity increases.
Nonetheless, applications involving hydrogen are expanding quickly, and demand in this field is predicted to rise by 38% annually.Â
With yearly use of hydrogen expected to exceed 850,000 ounces by 2030, platinum’s role as a catalyst in fuel cells and green hydrogen production places it at the forefront of future demand.
Hydrogen economy emerges as platinum’s future driver
Demand for investments is very strong, especially in China, where platinum investment has increased dramatically since 2018. Retail campaigns have increased interest and awareness even more, such as Costco’s launch of platinum products in the US. Exchange-traded funds might become a source of platinum supply at higher prices if supply shortages persist.
The supply of platinum is still limited; according to WPIC, there will be a 682,000 ounce shortfall in 2024.
While recycling suffers delays in the supply of end-of-life vehicles, mining output is constrained by restructuring efforts in the wake of palladium and rhodium price decreases. Sterck highlighted the endurance of platinum in spite of these difficulties, citing its numerous uses in the investment, jewellery, hydrogen, and automobile industries.
