Page 18 - Bullion World Volume 5 Issue 07 July 2025
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Bullion World | Volume 5 | Issue 07 | July 2025
Navigating the PGM
Landscape: Challenges, Shifts,
and a Glimpse into the Future
Ms Rhona O’Connell, Head of Market Analysis, StoneX
Supply-Demand Balances:
The 49th Annual IPMI Conference in A Fragile Equilibrium
Scottsdale brought together stakeholders Both platinum and palladium are currently
across the global precious metals experiencing moderate supply deficits—roughly
ecosystem, and I was honoured to share equivalent to two to three weeks of global industrial
insights on the current and emerging demand. While platinum appears slightly more
dynamics in the platinum group metals resilient due to diverse applications, palladium faces
(PGM) market. As we collectively examine a steeper challenge with demand erosion in the auto
the long-term outlook for platinum, sector, particularly from the declining use of internal
palladium, and their minor counterparts, combustion engine (ICE) vehicles.
several trends and shifts demand our
attention. Light vehicle production—still responsible for 40%
of platinum demand and over 80% of palladium
demand—remains central to these metals’
consumption profiles. However, with governments
transitioning toward net-zero emissions, electric
vehicles and hydrogen technologies are reshaping this
demand structure. Over time, the rise in end-of-life
vehicle scrappage may lead to increased secondary
supply, potentially turning the auto industry from a
net consumer to a net supplier of PGMs by 2040. This
transformation, while hypothetical, signals the need for
miners and refiners to adapt their long-term strategies
accordingly.
Technological Adaptations
and New Applications
Innovation in fuel cell technology is one area providing
cautious optimism. Platinum-palladium alloys are
showing promise in pilot-level applications, delivering
higher energy density in fuel cells compared to
platinum-only versions. The former technology, while
currently limited in scale, is already being deployed
in off-road and heavy-duty vehicles—particularly in
mining operations, where companies are leading by
example in their decarbonisation process.
Ms Rhona O’Connell
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