THE RESOURCEFUL MINING ISSUE | 2021
PGMs DEMAND & SUPPLY
Renewable energy driving the demand for PGMs
For centuries, the silvery-white lustre of platinum has contributed to its appeal in jewellery manufacturing. It is also used extensively in medical applications, but the market that has been the main driver for demand has been the automotive industry. By Prashaen Reddy*
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he automotive industry mainly uses platinum in catalytic converters, removing some of the harmful emissions that cars produce. It is also used for the production of electronic products, as a catalyst in the chemicals industry and in the production of fuel cells. However, over the last five years, there has been a decline in the demand for platinum group metals (PGMs), as the world started shifting to renewables and a circular economy. This challenge has presented the need to look for other uses for this metal. With renewable energy and digital advancements driving the transition, manufacturers have started utilising recycled platinum.
Renewable energy The world is shifting and change is coming quickly for the traditional internal combustion engine, with many automobile manufacturers now producing electric vehicles and exploring the potential of hydrogenpowered vehicles. With the decline in mobility driven by traditional internal combustion engines, the need for catalytic converters will decline. Therefore, one of the big areas being explored by PGM mining companies is the support of the rise of the renewable energy battery storage and fuel cell industry.
The metal is being utilised and experimented with to help support the storage of energy in battery technology and supporting newer industries. The use of platinum within storage and pollution management technology in the automotive sector is driving big mining companies, who have had large portfolios in platinum production, into the renewable energy market to see how they can monetise platinum in different ways.
Digitalisation Another space we need to understand is how much of a role PGMs have played in digitalisation and the technology boom, and how much of these metals have been utilised in the electronics world. One of the biggest changes globally over the last 20 to 30 years has, of course, been the rise in demand for digital components. We have seen this in the evolution of everything from cars and washing machines to smartphones. With the Fourth Industrial Revolution, this is not slowing down, as we are digitising everything. From a communications perspective, and through 5G, we are connecting faster and to everything around us. With 5G driving increased connectivity, we will need to start including microchips and Wi-Fi chips into everyday devices. 5G is already playing a big role in the
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