New partnership to drive Platinum Group Metal green energy technology
(Kitco News) - The development of renewable green energy continues to attract a lot of attention. Two major precious metals companies are now working together to leverage their expertise in Platinum Group Metals (PGMs) to potentially develop new technology.
Friday, Johnson Matthey (LSE: JMAT), the world's largest fabricator and recycler of PGMs and Sibanye-Stillwater (NYSE: SBSW), a leading international precious metals mining group, announced a strategic partnership to identify and develop solutions to drive decarbonization and more efficient use of critical metals such as PGMs and metals used in battery technology.
The new partnership comes as many analysts note that platinum, palladium, and rhodium are important metals in the push to decarbonize the global economy. These metals are critical components used to reduce harmful emissions from gasoline and diesel-powered engines. Platinum is also being used to develop new green hydrogen-powered technology.
"PGMs, due to their unique properties, play a vital role in low carbon technologies that will enable the path to net zero targets globally. Pgms are at the heart of electrolyser technologies for producing green hydrogen (i.e. hydrogen produced from renewable energy and with no greenhouse gas emissions). Pgms are also a crucial component of fuel cells, facilitating the conversion of hydrogen into electrical energy with no harmful emissions," the companies said in a joint announcement.
The companies added that the two companies' strategic partnership would focus on developing a number of opportunities to drive technological innovation and ensure more sustainable supply chains for customers.
"We are delighted to announce this important partnership with Sibanye-Stillwater to accelerate development of the low carbon technologies and sustainable supply chains needed for a cleaner, heathier world. We are excited to bring together our complementary expertise to help secure a more sustainable future for tomorrow's industry," said Robert MacLeod, chief executive of Johnson Matthey in the statement.
"We are delighted to enter into this world-class partnership which further advances our commitment to creating a greener future, by developing technologies for a better tomorrow, utilising the metals we produce. Fast-tracking green technology and working together to achieve ESG excellence will enable us to continue to improve lives and the environment," said Neal Froneman, CEO of Sibanye-Stillwater.
The partnership also comes at a time when the PGM market is seeing growing demand and falling supply. Earlier this week, Russian mining giant and the world's largest palladium producer Nornickel said it expects platinum group metal production to fall by 710,000 ounces this year.
The growing supply/demand imbalance has been particularly bullish for palladium. Although palladium price is off from Thursday's high, it is still seeing significant gains this week, up 10%; June palladium prices last traded at $2,605.50 an ounce, down 2% on the day.