The hydrogen economy is beginning to deliver meaningful new demand for platinum, with BloombergNEF projecting that electrolyzer and fuel cell applications could consume up to 500,000 ounces annually by 2028. Proton exchange membrane (PEM) electrolyzers, which use platinum catalysts, are the leading technology for green hydrogen production from renewable energy.
Green hydrogen projects are accelerating globally. Europe's hydrogen bank has allocated billions in subsidies, the US 45V tax credit (despite some implementation delays) is driving project development, and China has become the world's largest electrolyzer manufacturer. Each gigawatt of PEM electrolyzer capacity requires approximately 700-1,000 ounces of platinum. With global electrolyzer installations expected to exceed 50 GW by 2028, the cumulative platinum demand from this sector alone could approach 2-3 million ounces.
The hydrogen demand catalyst adds a structural dimension to platinum that goes beyond the traditional automotive cycle. Unlike automotive catalytic converter demand — which is vulnerable to EV adoption trends — hydrogen demand is a net-new use case backed by government policy and corporate decarbonization commitments. Combined with platinum-for-palladium substitution in autocatalysts, the demand outlook is more diversified and resilient than at any point in the last decade.