Australian Platinum Group Metals Market Size, Share & Trends Analysis Report By Metal Type (Platinum, Palladium, Rhodium, Iridium, Ruthenium, Osmium), By Applications (Autocatalysts, Electricals and Electronics, Fuel Cells, Glass, Ceramics, and Pigments, Jewelry, Medical, Chemical Industry, Others) and Forecasts, 2024-2032

Market Overview

The Australian platinum group metals market was valued at USD 348.52 million in 2023. It is estimated to reach USD 593.83 million by 2032, growing at a CAGR of 6.1% during the forecast period (2024–2032). PGMs are extensively used in industrial processes such as petroleum refining, chemical manufacturing, and electronics production. The expanding industrial sector, domestically and globally, boosts the demand for PGMs in Australia.

Moreover, with surging environmental concerns, there has been a significant shift towards the adoption of green technologies amongst the Aussies, thereby creating opportunities for the PGMs market growth in Australia.

Highlight

• Palladium dominates the metal-type segment
• Autocatalysts dominate the application segment

Market Dynamics

Australian platinum group metals market drivers:

Industrial applications

The industrial applications of platinum group metals (PGMs) significantly drive the Australian market. PGMs are indispensable in various industrial processes due to their great properties, like high melting points, corrosion resistance, and excellent catalytic abilities. In the petroleum refining industry, platinum and palladium are crucial catalysts used in cracking processes. Also, the chemical industry relies on these metals to produce fertilizers, explosives, and specialty chemicals.

Moreover, the electronics sector utilizes PGMs to manufacture hard disks, thermocouples, and electrical contacts. The continuous expansion of these industries, both domestically and globally, bolsters the demand for PGMs. As industrial processes advance and new applications emerge, the reliance on these versatile metals is expected to increase, further driving Australian platinum group metals market growth.

Australian platinum group metals market restraint:

Fluctuating prices and market volatility

The PGM market in Australia is highly susceptible to price fluctuations and market volatility, driven by several factors. Geopolitical tensions, particularly in major PGM-producing countries like South Africa and Russia, can disrupt global supply chains, causing significant price swings. For example, the price of palladium soared to over $2,500 per ounce in 2021 due to supply disruptions and increased demand from the automotive industry.

Economic downturns also impact PGM demand, as reduced consumer spending leads to lower sales of luxury items such as jewelry, which heavily relies on platinum and palladium. Moreover, shifts in automotive technology, such as the rise of electric vehicles that use fewer PGMs, contribute to market instability. These factors create uncertainty for Australian producers, affecting revenue and long-term investment plans. All these factors are estimated to restrict the Australian PGMs market expansion.

Australian platinum group metals market opportunities:

Expansion in green hydrogen production

Green hydrogen production presents a significant growth opportunity for Australia's PGM market. Platinum and iridium are essential in electrolysis, the process of producing hydrogen from water using renewable energy. Australia's abundant renewable energy resources, such as wind and solar, position it well to become a leading green hydrogen producer. For example, the Australian Renewable Energy Agency (ARENA) has committed USD 70 million to fund hydrogen projects. This shift towards sustainable energy solutions will increase the demand for PGMs, driving economic growth and technological innovation in Australia's mining sector. Investments in green hydrogen also align with global climate targets, fostering a cleaner energy future. Consequently, these factors are estimated to create opportunities for the Australian platinum group metals market growth.

Regional Analysis

Australia's PGM market is predominantly concentrated in regions with rich mineral deposits, such as Western Australia and South Australia. Western Australia, known for its extensive mining industry, leads in PGM production due to its well-established infrastructure and favorable geological conditions. For example, Western Australia is home to the Savannah Nickel Project, which produces nickel-copper-cobalt-PGM concentrate. This region benefits from advanced technological practices and substantial investment in the mining sector, contributing to its dominance in PGM production.

In South Australia, the focus is on exploration and development of new PGM resources. The Gawler Craton is a key area of interest, known for its significant mineral potential, including PGMs. South Australia's commitment to sustainable mining practices and innovation drives its contribution to the overall market. The state government supports these efforts through initiatives like the Plan for Accelerating Exploration (PACE) program, which aims to enhance mineral exploration.

Furthermore, in terms of exports, Australia primarily ships its PGM output to major industrial nations, including the United States, Japan, and European countries. The global economic landscape, trade policies, and international relations significantly influence Australia's PGM exports. For instance, Australia's Free Trade Agreements (FTAs) with key trading partners facilitate smoother trade flows and market access.

Thus, the factors above are estimated to boost the Australian platinum group metals market growth.

Segmental Analysis

The Australian platinum group metals market is segmented by metal type and application.

Based on metal type, the Australian platinum group metals market is divided into platinum, palladium, rhodium, iridium, ruthenium, and osmium. 

The palladium segment dominates the global market and is projected to exhibit a CAGR of 5.8% over the forecast period. Palladium, a key PGM, is predominantly used in automotive catalytic converters to reduce emissions. Its demand is driven by stringent environmental regulations and growing vehicle production, making it critical for cleaner automotive technologies and sustainable industrial applications.

Based on application, the Australian platinum group metals market is segmented into autocatalysts, electricals and electronics, fuel cells, glass, ceramics and pigments, jewelry, medical, chemical industry, and others.

The autocatalysts segment is estimated to own the highest market share and grow at a CAGR of 5.7% over the forecast period. Autocatalysts, primarily utilizing platinum, palladium, and rhodium, convert harmful vehicle emissions into less toxic substances. Increasing environmental regulations and advancements in catalytic converter technology propel this segment, which is crucial for meeting emission standards and promoting greener automotive solutions.

Recent Developments

• April 2024- Elliott Investment Management acquired a stake of around USD 1 billion in Anglo American Plc, a mining company listed in the UK. Anglo-American has recently received an unsolicited takeover proposal from BHP Group Ltd., an Australian company.