Platinum group metals (PGMs), which include platinum, palladium, rhodium and other metals, are essential raw materials for the global economy. Among them, the automotive industry is the largest consumer of PGMs globally, mainly used in catalytic converters for vehicle exhaust systems.
Considering that automotive production will pick up and continue to grow in the coming years, this will increase the demand for platinum group metals, especially for platinum and palladium. On the supply side, the platinum market is expected to fall into severe shortages in 2024 and beyond.
According to the latest data from the U.S. Geological Survey (USGS), most of the world’s platinum group metals come from South Africa and Russia. However, the Russian-Ukrainian conflict and power shortages in South Africa have severely constrained the supply capacity of these two countries, so other major platinum group metals producers are in the spotlight. Here are the top five platinum and palladium producers in the world, according to the latest US Geological Survey data.
Platinum production: 120,000kg
Palladium production: 71,000kg
PGM reserves: 63 million kilograms
South Africa is the world’s top platinum producer, with platinum production in 2023 reaching 120,000kg. South Africa is also a major producer of palladium, producing 71,000kg, the second highest in the world. In 2023, disruptions in power supply and multiple issues related to rail transport, coupled with falling prices, led to a decline in South Africa’s production. South Africa’s Bushveld mining complex is the world’s largest source of platinum group metals supply, accounting for the vast majority of annual global platinum and palladium production.
Platinum production: 23,000kg
Palladium production: 92,000 kilograms
PGM reserves: 5.5 million kilograms
Even as the world’s second-largest platinum producer, Russia’s platinum production is only 23,000kg. However, Russia is still the world’s largest producer of palladium, with production in 2023 of 92,000kg. Russia’s Norilsk Nickel is the world’s largest producer of palladium. In October 2024, as the Russia-Ukraine war lasted for more than two years, the United States recommended that the G7 sanction Russia’s palladium production, causing the price of palladium to jump sharply on supply concerns.
Platinum production: 19,000kg
Palladium production: 15,000kg
PGM reserves: 1.2 million kg
In October 2022, Zimbabwe revised its policy to allow the government to stockpile physical metals, including platinum group metals. Zimbabwe also revised its cash royalty policy, whereby miners will pay royalties consisting of cash and refined physical metal based on production. Metals impacted by the new policy include platinum group metals, gold, diamonds and lithium. In January 2023, Zimbabwe doubled its royalty rate for platinum to 5% and plans to increase the royalty rate for lithium. Zimplats (ASX:ZIM,OTC Pink:ZMPLF) which is 87% owned by Implats is currently the country’s largest platinum miner.
Platinum production: 5,500kg
Palladium production: 16,000kg
Platinum group metals reserves: 310,000kg
In 2023, Canada produced up to 16,000kg of palladium, the third highest in the world. Platinum group metals production in Canada is concentrated in Ontario, followed by Quebec and Manitoba. The Lac des Iles mine in western Ontario, currently owned by Implats Canada, is the main platinum group metals producing mine in Canada. Besides that, platinum group metals are produced at other Canadian mines mainly as a by-product of nickel production.
Platinum production: 2,900 kg
Palladium production: 9,800 kg
PGM production: 820,000kg
Sibanye Stillwater’s (NYSE:SBSW) Stillwater Complex in Montana is the only producer of raw platinum group metals in the United States. Due to the low price of palladium, Sibanye Stillwater has had to cut production and announce layoffs of around 700 employees in 2024. The company noted that the influx of Russian palladium into the market depressed prices. In response, two Montana senators have introduced a bill calling for a ban on imports of Russian palladium.
