Is this a new era for platinum? Its miners think so

South Africa dominates global platinum production, controlling 70% of the market and accounting for 27% of its mineral exports in 2025. The country’s platinum group metals (PGMs)—including platinum, palladium, rhodium, and ruthenium—are critical to industries like automotive and electronics, with demand rising despite a decade of underinvestment in mining. Platinum prices doubled last year, and analysts expect elevated levels to persist due to strong demand from hybrid vehicles and traditional combustion engines. While electric vehicle (EV) sales have slowed, PGMs remain essential for hybrids and older car models, supporting prices. New applications, such as ruthenium in data centers, are also driving growth. Industry leaders predict long-term price increases, with Standard Bank forecasting a 100% rise in the platinum-palladium-rhodium basket by 2027. Impala Platinum CEO Nico Muller believes the current market strength will last three to five years, defying historical volatility. However, geopolitical risks like Middle East conflict could disrupt supply chains, affecting mining operations dependent on diesel, acid, and explosives. While oil price shocks may slow EV adoption, PGM demand from discretionary sectors like automotive and jewelry remains robust. Investors are increasingly turning to PGMs as a hedge against economic uncertainty, with Standard Chartered’s Suki Cooper noting renewed interest in hard assets. The sector’s structural constraints—limited new supply and strong demand—suggest sustained high prices ahead.