PGM Demand from Hydrogen Sector to Grow in 2025, But at a Slower Pace

PGM

The hydrogen industry’s demand for platinum group metals (PGMs), particularly platinum and iridium, is set to increase in 2025, though at a slower rate than previously anticipated due to delays in hydrogen project development.

According to the World Platinum Investment Council (WPIC), demand for platinum in hydrogen applications surged by 123% year-on-year in 2023, albeit from a small base. A further 32% increase is expected in 2025 as proton exchange membrane (PEM) electrolysers and hydrogen fuel cells continue to drive PGM consumption. This new demand segment could help offset the declining use of PGMs in autocatalysts as the automotive sector transitions away from internal combustion engine (ICE) vehicles.

Hydrogen Economy’s Impact on PGM Market

Hydrogen-related demand for platinum, iridium, and ruthenium is also expected to support palladium demand, despite palladium not being directly used in hydrogen applications. As hydrogen-sector platinum demand rises, more palladium will be substituted for platinum in ICE vehicles, thereby increasing automotive palladium demand and lifting overall PGM prices.

The WPIC projects that 11% of global platinum demand will come from hydrogen applications by 2030, totaling 900,000 ounces (oz). By 2040, hydrogen energy production is expected to be the largest end-market for platinum, with projected demand reaching 3.5 million oz.

Hydrogen Investments and Policy Support Growing

Despite slow project development, global hydrogen investments have exceeded $300 billion through 2030, with 61 governments adopting national hydrogen strategies as of 2024.

According to Heraeus Precious Metals Germany head of trading Dominik Sperzel, declining costs and technological advancements will strengthen the hydrogen economy’s long-term viability.

The EU is actively supporting hydrogen infrastructure, having allocated over €100 million for hydrogen refueling stations across seven EU countries, including Poland. Additionally, in May 2024, the EU adopted its hydrogen and gas decarbonization package, creating a regulatory framework for dedicated hydrogen infrastructure.

In July 2024, the Hydrogen Council reported that six European hydrogen projects reached final investment decisions (FID). Globally, hydrogen projects reaching FID have increased sevenfold since 2020, from 102 committed projects to 434 in 2024.

Challenges Remain Despite Positive Outlook

While the long-term outlook for PGM demand remains strong, challenges persist. Many hydrogen projects lack financing, and infrastructure limitations have slowed development. Additionally, while hydrogen subsidies have grown from $50 billion to $300 billion since 2022, actual fund disbursement only began in mid-2024, slowing project acceleration.

Despite these hurdles, WPIC research director Edward Sterck remains optimistic, stating, "Now that subsidies are beginning to flow, development will accelerate quickly, driving consumer demand for fuel cell electric vehicles (FCEVs)."

China's Coker Shutdown Squeezes High-Sulphur Anode Coke Supply

Motiva

In a significant development within the petroleum coke industry, Zhejiang Petrochemical, a major independent refiner in China, recently halted operations at its delayed coker unit (DCU) on September 19. The shutdown of this facility, which produces high-sulfur, anode-grade petroleum coke, has caused a tightening in the supply of this crucial material. Prior to the shutdown, the unit was churning out approximately 70,000 tons per month of coke with a 6.5% sulfur content and 350ppm vanadium, critical for the anode-grade calcining market.

This unexpected supply disruption is expected to drive demand for alternative sources of high-sulfur anode-grade cokes, with refiners from other regions stepping in to fill the gap. U.S. Gulf refiner Motiva, with its Port Arthur refinery in Texas, may see increased interest in its high-sulfur DCU 1 coke, as well as Saudi Arabia's sponge-grade coke, both of which have similar specifications and production capacities.

Impact on Global Supply and Prices

In addition, Japanese refiner Cosmo Oil's Sakai refinery, which produces approximately 500,000 tons of coke per year with around 7% sulfur and less than 300ppm vanadium, is also expected to be in higher demand. Historically, the Sakai refinery has directed the majority of its production toward its domestic power plant, Yokkaichi Kasumi, but recent plant maintenance has opened the door for increased exports. In fact, Cosmo Oil has been offering this high-sulfur coke to Chinese buyers at a competitive rate of 1,350 yuan per ton ($192 per ton), a significant premium compared to domestic fuel-grade coke prices.

China's coker shutdown has prompted a rise in imports of Japanese coke, with trade data showing imports of 11,000 tons in July and 21,800 tons in August. These figures mark the first time China has imported coke from Japan since November 2023, further highlighting the tightening supply situation in the region.

This development will likely continue to influence global anode-grade petroleum coke prices, driving up demand for both U.S. and Japanese refiners, as China looks to compensate for its lost domestic production.

Leclanché Introduces Niobium-Based Battery Cells for Industrial and Heavy-Duty EV Applications

Leclanché

Swiss energy storage company Leclanché is set to launch a new battery cell solution that leverages XNO, a niobium-based anode material developed by UK-based Echion Technologies. The XN50 battery cell will replace Leclanché’s current lithium titanium oxide (LTO) offering, with a focus on heavy-duty electric vehicles (EVs), rail, and marine applications.

The XN50 promises significant advancements over LTO cells, delivering 50% higher energy density and the ability to fast charge in under 10 minutes. Moreover, the niobium-based cells offer enhanced safety and performance, particularly in extreme weather conditions. These new cells will be available alongside Leclanché's existing nickel manganese cobalt (NMC) batteries, which use graphite anodes. Leclanché has been producing LTO cells since 2012 and introduced NMC batteries in 2019.

Niobium’s Growing Role in Battery Technology

Niobium, traditionally used in steel alloys and defense applications, is now becoming a key material in battery and fuel cell technologies due to its high energy density. Echion’s XNO materials, developed from mixed niobium oxide compounds and microparticle designs, are sourced from Brazilian niobium producer CBMM. The XN50 is the first battery cell to incorporate XNO on a commercial scale, offering manufacturers a cutting-edge solution for industrial and mass transportation use. Additionally, Echion has signed a deal with Taiwanese battery manufacturer GUS Technology to supply XNO for heavy-duty EV battery production.

As demand for niobium-based anode materials continues to rise, Echion plans to open a 2,000 t/yr XNO manufacturing facility this year to supply major cell manufacturers and original equipment manufacturers (OEMs). The versatility of niobium extends beyond batteries, with Canadian project developer NioBay Metals currently exploring niobium-titanium alloys for hydrogen fuel cells, presenting new market opportunities for niobium and titanium.