The World Platinum Investment Council sees the beginnings of mass-produced fuel cell electric vehicles in China, which is bullish for the white metal.
Yesterday the WPIC published a research note, FCEV Growth In China.
"It is just a matter of time until demand for platinum from fuel cell electric vehicles (FCEVs) equals the current level of platinum automotive demand, which is forecast to be over 3,000 koz this year," wrote the council.
Internal combustion engines need platinum group metals for catalysts, a need that goes away for vehicles that are all-electric. Fuel-cell vehicles may have a niche in long-haul transport and other scenarios.
The WPIC sees the FCEV industry ramping up in China.
"China – which has just seen the launch of its first mass-produced passenger FCEV, the Changan Shenlan SL03 – is well positioned to be one of the leading forces in the global FCEV market, especially in the mass transport and heavy-duty sectors," writes the WPIC.
The council notes that the China Association of Automobile Manufacturers said that 8,922 FCEVs were registered in 2021.
"Recent plans (NEV Industry Development Plan and NEV Technology Roadmap 2.0) will help to stimulate the market for FCEVs further. By 2035, the market share of NEVs in China is expected to exceed 50 per cent, with the number of FCEVs reaching around one million.
