Platinum Demand Expected to Outpace Supply in 2026, Johnson Matthey Report Says

A new report by Johnson Matthey, a group focusing on sustainable technologies, indicates that the demand for platinum is again going to exceed the available supply in 2026. This is largely due to constrained mine production amid robust demand among industrial users of the metal. In contrast, PGMs like rhodium and palladium are set to record a marginal surplus in 2026. All in all, the market outlook remains bullish for PGMs, and producers like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) can look forward to ongoing favorable conditions.

The report highlights that platinum's supply deficit stems from ongoing operational challenges at mines, including labor issues, power outages, and declining ore grades, particularly in South Africa, which accounts for the majority of global platinum production. Meanwhile, demand from the automotive sector, especially for catalytic converters in diesel vehicles, and from industrial applications such as glassmaking and chemical production remains steady. The growing use of platinum in hydrogen fuel cells and electrolyzers for green hydrogen production is also expected to contribute to demand growth.

In contrast, rhodium and palladium, which are also used in catalytic converters, are forecast to see a slight surplus in 2026. This is partly due to a shift in automotive production toward electric vehicles, which require fewer PGMs, and increased recycling of these metals. However, the overall PGM market remains tight, supporting prices for producers.

For investors, the report reinforces the investment thesis for platinum group metals, particularly platinum. Companies like Platinum Group Metals Ltd., which is advancing the Waterberg project in South Africa, stand to benefit from the supply-demand imbalance. The Waterberg deposit is one of the largest undeveloped PGM resources globally, and its development could help address future supply gaps.

Rocks & Stocks, the publisher of this analysis, is a specialized communications platform delivering deep insights into the mining industry. It is part of the Dynamic Brand Portfolio @IBN, which provides access to wire solutions, editorial syndication, press release enhancement, social media distribution, and corporate communications solutions. With broad reach and a seasoned team, Rocks & Stocks is uniquely positioned to serve private and public companies aiming to reach a wide audience.