Rise of EV cars, bad news for South Africa’s Platinum production

The rise of electric vehicles and demand for metals used in battery manufacturing caused a decline in demand for South Africa’s platinum, a crucial component in combustion engines.

In a detailed report, EVmagazine.com, explains the steep drop in platinum output in South Africa, the world’s leading producer.

“Platinum, once commanding more than US$2,000 an ounce, has seen its value drop 13% since last year to US$939 per ounce,” the media said.

Battery-powered cars do not require catalytic converters, a crucial use for platinum in traditional combustion engines.

“Catalytic converters account for 40% of the platinum demand and with the auto sector increasingly shifting to electric vehicles, the market has taken a significant hit,” it said.

Electric cars accounted for 18% of all cars sold in 2023, up from 14% in 2022 and just 2% in 2018. By 2030, EV sales are expected to account for almost 40% of all vehicle sales, and over 50% by 2035 under current policies, according to the IEA.