What Are The Platinum Group Metals (PGMs)? Critical Raw Materials

Posted on by Brian Colwell

International bodies including the U.S. National Research Council, European Commission, and British Geological Survey have consistently identified PGMs as among the most critical raw materials essential for economic and national security.

The six platinum group metals (PGMs) – Iridium, Osmium, Palladium, Platinum, Rhodium, and Ruthenium – represent perhaps the most critical raw material group globally due to an extraordinary combination of factors that create unparalleled supply vulnerabilities for modern industrial economies.

Why Are The Platinum Group Metals (PGMs) Considered Critical Raw Materials

Extreme geographic concentration with over 90% of production from two countries, irreplaceable industrial applications with no viable substitutes, demonstrated supply disruptions causing price increases of 400-700%, extreme geological rarity, deepening mines approaching technical limits, growing global demand, and insufficient recycling – definitively establishes the platinum-group metals as perhaps the most critical material vulnerability facing advanced industrial economies. With production concentrated in two countries facing their own challenges (South Africa’s electricity crisis and deep-mine safety issues; Russia’s international sanctions), minimal strategic stockpiles, no viable substitutes, and growing demand from both traditional and emerging technologies, the PGMs collectively represent an unparalleled supply risk for global industry. 

Extreme Geographic Concentration & Production Constraints

The PGMs exhibit the most concentrated supply chain of any major industrial metal group. South Africa dominates global production with staggering market shares: 74% of platinum (141,600 kg), 39% of palladium (84,300 kg), 80% of rhodium (20,875 kg), 90% of ruthenium (31,463 kg), and 90% of iridium (7,006 kg). Russia provides the second major source, producing 40% of palladium (86,000 kg) and 11% of platinum (21,000 kg). Together, these two countries control 82-89% of global PGM production. Zimbabwe possesses 10% of global resources (4,100 metric tons platinum, 3,200 metric tons palladium, 340 metric tons rhodium in the Great Dyke). This concentration is amplified by geological constraints – 82% of global PGM reserves are located in South Africa’s Bushveld Complex, with total world reserves estimated at only 70-81 million kilograms. Since 1960, South Africa has produced 7,200 metric tons of PGMs while Russia has produced about 5,000 metric tons, mostly from the Noril’sk-Talnakh area. The metals cannot be mined independently but occur together in specific ratios (typically 2:1:0.15 for platinum:palladium:rhodium in South African ores), meaning supply of one cannot be adjusted without affecting others. Production is further constrained by the fact that PGMs often occur as byproducts – in Russia, palladium is primarily a byproduct of nickel mining, making its supply dependent on nickel market economics.

Extreme Rarity & Technical Extraction Challenges

PGMs are among the rarest metals on Earth, with average crustal abundances of only a few tens to hundreds-parts per trillion. The upper crust contains only about 0.0005 parts per million platinum. Individual PGM concentrations in the upper crust range from 0.599 ppb for platinum to just 0.018 ppb for rhodium. The average grade of PGMs in economically viable ores ranges from only 5 to 15 grams per metric ton, requiring massive mining operations to extract small quantities of metals. Current mining in the Bushveld Complex occurs at depths exceeding 2 kilometers, with operations at 2,176 meters facing virgin rock temperatures of 70°C requiring sophisticated refrigeration. The 75°C operational limit will be reached within hundreds of meters of additional depth. In the Noril’sk-Talnakh area, mining depths range from 300 to 1,500 meters. Recovery rates are only 75-85% due to losses in mining, milling, and refining. The greatest losses occur during early processing stages (crushing, milling, and froth flotation) due to their diverse mineralogy and microscopic grain sizes. Some PGMs like osmium and iridium are “quantitatively burned off” during processing. Mining requires significant infrastructure that is already strained – both power and water are in short supply in southern Africa.

Irreplaceable Applications Across Critical Industries

PGMs serve irreplaceable functions across multiple critical industries, with no viable substitutes for their key applications. In the automotive sector, which consumes 85% of palladium, 31-35% of platinum, and 93% of rhodium production, these metals enable catalytic converters to meet emissions standards. Rhodium specifically reduces nitrogen oxides with no alternative catalyst achieving comparable efficiency, while platinum and palladium oxidize hydrocarbons and carbon monoxide. In electronics, ruthenium enables hard disk drives (62% of ruthenium demand), while iridium is essential for producing sapphire crystals for LEDs and lithium tantalate for 5G technology (55% of iridium demand). Multi-layer ceramic chip capacitors and alloy coatings for hard disks also depend on PGMs. The chemical industry relies on platinum-rhodium catalysts for nitric acid production essential to fertilizers and explosives, while petroleum refining uses platinum-supported catalysts for producing high-octane gasoline and aromatic compounds through reforming and isomerization processes. Emerging green technologies create new dependencies – PEM electrolyzers for hydrogen production require iridium-ruthenium catalysts, while fuel cells need platinum. The glass manufacturing industry requires platinum and rhodium for equipment that can withstand molten glass at extreme temperatures, essential for producing fiberglass and flat-panel displays. Medical applications include dental alloys, pacemakers, and anti-cancer drugs. These applications cannot use substitute materials without severe performance degradation or complete failure.

Unprecedented Price Volatility & Market Instability

The PGM markets have exhibited extreme price volatility that reflects their critical nature and supply-demand imbalances. Rhodium’s price journey exemplifies this instability – rising from $696.84/oz in 2016 to a record $30,000/oz in March 2021, a 4,200% increase. Iridium prices increased 779% from 2016 to 2021, reaching $6,400/oz. Palladium rose from $617.39/oz to $2,419.18/oz over the same period. Historical disruptions have caused dramatic price spikes with platinum reaching $1,800, palladium $900, and rhodium $7,000 during peak disruption periods. Even in 2024 alone, ruthenium prices ranged from $400-650/oz, a 62% swing within a single year. This price instability stems from inelastic supply meeting variable demand – when automotive production increases or new technologies emerge requiring PGMs, supply cannot quickly respond. The small market sizes amplify volatility: global iridium production is only 7,000-8,000 kg annually, meaning even minor supply disruptions or demand shifts cause dramatic price swings.

Supply Chain Vulnerabilities & Historical Disruptions

The COVID-19 pandemic starkly demonstrated PGM supply chain fragility. When South Africa imposed a 21-day lockdown in March 2020, Sibanye-Stillwater, Anglo American Platinum, and Impala Platinum all declared force majeure, unable to meet delivery contracts. This single event removed over 50% of global PGM supply. Major historical disruptions have repeatedly exposed these vulnerabilities: the 1986 work stoppage at Impala, the 1989 disruption at Rustenburg refinery causing rhodium prices to spike to $7,000, the 1999-2000 shortfall of palladium supplies from Russia due to export restrictions causing prices to quadruple, and the January 2008 power crisis that forced all South African mines to shut down for five days. The 2012 miners’ strike resulted in tragedy when striking workers at Marikana Mine were killed during protest. More recently, Anglo American Platinum’s converter plant explosion in February 2020 followed by water leaks forced year-long shutdowns, removing critical refining capacity. Russia’s Oktyabrsky Mine flooding in February 2021 operated at only 60% capacity for months. These disruptions had immediate global impacts because PGMs lack significant above-ground stocks to buffer supply interruptions. Unlike gold with massive reserves, or base metals with London Metal Exchange warehouses, PGMs move directly from mine to refinery to end-user with minimal inventory.

Strategic Implications & Complete Import Dependence

The United States faces complete strategic vulnerability in PGMs, with net import reliance at approximately 90% across all six metals. Domestic production is limited to one operation – Sibanye-Stillwater’s Montana mines producing only 13,700 kg palladium and 4,020 kg platinum annually against consumption exceeding 100,000 kg for palladium alone. The U.S. produces zero rhodium, ruthenium, or iridium. The National Defense Stockpile contains negligible amounts – only 15 kg of iridium and 261 kg of platinum. Import sources create geopolitical vulnerabilities: 32% of palladium comes from Russia, while 43-45% of rhodium comes from South Africa. The European Union recognized this vulnerability by including PGMs among 14 critical raw materials, while the U.S. National Research Council specifically identified palladium, platinum, and rhodium as critical to economic and national security.

Future Demand Growth & Limited Recycling

From 1900 to 2011, approximately 14,200 metric tons of PGMs were produced, with 95% of this production (13,500 metric tons) occurring after 1960, demonstrating dramatic demand acceleration. Global net demand reached approximately 460 metric tons in 2012, with demand having more than doubled in the last 20 years. China’s palladium consumption alone grew from near zero in 2000 to approximately 2,000 thousand troy ounces by 2012. Future demand drivers will intensify criticality: China’s China 6 and India’s Bharat Stage VI emission standards will require PGM catalysts for hundreds of millions of new vehicles; the hydrogen economy requires iridium for electrolyzers and platinum for fuel cells; 5G infrastructure needs iridium for crystal growth; and electric vehicle growth may increase PGM demand if battery technologies incorporate these metals for enhanced performance. While recycling provides approximately 30% of platinum, palladium, and rhodium supply from spent catalytic converters, it cannot address supply vulnerabilities. Recycling faces a 10-15 year lag from vehicle production to end-of-life processing, cannot increase quickly to meet demand spikes, and provides minimal recovery of iridium and ruthenium due to their dispersed uses.

Interesting Facts About The Platinum Metals As A Group

  1. Discovery Timeline: All six platinum-group metals (platinum, palladium, rhodium, ruthenium, iridium, and osmium) were discovered within just 57 years – platinum in 1750, iridium and osmium in 1803, palladium and rhodium in 1804, and ruthenium in 1807.
  2. Extreme Rarity: PGMs are among Earth’s rarest elements, with crustal abundances ranging from only 0.018 ppb (rhodium) to 0.526 ppb (palladium), making them collectively the rarest metal group on Earth.
  3. Geographic Concentration: 95% of all PGM production since 1960 comes from deposits discovered by the 1920s, with 97% of world resources contained in just 14 igneous intrusions – 72% in South Africa’s Bushveld Complex alone.
  4. Inseparable Production: No PGM can be mined independently – they must be extracted together and separated through complex metallurgical processes, with typical South African ore containing platinum:palladium:rhodium ratios of 2:1:0.15.
  5. Processing Challenge: Extracting PGMs requires processing 3-8 tons of ore to produce just one troy ounce of metal, with economically viable ores containing only 5-15 parts per million total PGMs.
  6. Shared Atomic Properties: PGMs share similar atomic structures and d-electron configurations, enabling them to substitute for each other in many applications – though not all, as each has unique properties for specific uses.
  7. Catalytic Converter Synergy: Three PGMs work together in automobile catalysts – platinum oxidizes carbon monoxide and hydrocarbons, palladium assists in oxidation, and rhodium specifically reduces nitrogen oxides.
  8. Extreme Temperature Resistance: All PGMs exhibit exceptional high-temperature stability, with melting points ranging from 1,554°C (palladium) to 3,033°C (osmium), enabling use in extreme conditions.
  9. Refining Bottleneck: All PGMs must pass through a handful of specialized refineries globally – Johnson Matthey (UK), Impala Refining (South Africa), and facilities in Russia – creating shared supply vulnerability.
  10. Recovery Limitations: Modern processing achieves only 75-85% recovery for the PGE group, with heavier PGEs (ruthenium, osmium, iridium) showing even lower recoveries due to volatilization during fire assay.
  11. Depth Constraints: All PGEs face the same extraction limit as virgin rock temperatures approach 75°C at depths around 2.5-3 km, creating a common technical boundary for deep mining.
  12. U.S. Import Dependence: The United States shows 90% net import reliance for all PGMs as a group, with zero domestic production of rhodium, ruthenium, or iridium.
  13. Biocompatibility: All PGMs exhibit biocompatibility and nonreactivity with organic tissue, enabling medical applications from pacemakers (platinum) to dental alloys (palladium) and experimental cancer drugs.
  14. Green Technology Dependence: The hydrogen economy requires multiple PGMs working together – iridium-ruthenium catalysts for electrolyzers, platinum for fuel cells, and palladium for hydrogen purification.
  15. Complementary Industrial Uses: Different PGMs serve distinct but interconnected roles – ruthenium in electronics (62% of demand), rhodium in glass manufacturing (9%), iridium in crystal growth (55%), platinum in chemical production (20%), and palladium in catalysis (68%).
  16. Historical Production: From 1960 to 2011, approximately 13,500 metric tons of PGEs were produced collectively, representing 95% of all historical production and demonstrating dramatic modern demand acceleration.
  17. South African Dominance: South Africa produces 74% of platinum, 39% of palladium, 80% of rhodium, 90% of ruthenium, and 90% of iridium, creating vulnerability to regional disruptions.
  18. Shared Infrastructure Dependencies: All PGE production relies on vulnerable infrastructure – particularly South African power grids and water supplies – creating synchronized supply risks.
  19. Chemical Similarities: All PGEs can be refined to greater than 99.99% purity using the same hydrometallurgical techniques including solvent extraction, precipitation, and dissolution using chloride solutions.
  20. Substitution Limitations: Despite chemical similarities, PGMs cannot fully substitute for each other in many applications – rhodium’s unique NOx reduction cannot be achieved by platinum or palladium alone, making the entire group collectively critical.

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