Humanoid Robots Spark New Demand for South Africa's Platinum Group Metals

The rise of humanoid robots could significantly reshape the landscape of demand for platinum group metals (PGMs) in South Africa, much like the impact of the 1970 Clean Air Act on automotive emissions. With the impending commercialization of these robots, the PGM industry is preparing for a transformation that could redefine its market.

Paul Dunne, CEO of Northam Platinum, highlighted the critical role platinum plays in the production of silicone, which is essential for creating the skin of humanoid robots. "You need silicone for the skin of a robot and you need platinum to cure the silicone. The best-quality skin is produced from silicone which is cured by platinum," he stated during a media briefing on August 28, following the company's record financial results.

Unlike traditional applications of PGMs in catalytic converters, where the metals can be recycled, the platinum used in robots is consumed in chemical processes, raising concerns about future availability. As the production of humanoid robots is projected to take off in 2025, with an estimated 16,000 units being installed globally, the implications for PGM demand are profound. China is expected to dominate this market, accounting for over 80% of installations.

Historically, the surge in PGM demand can be traced back to regulatory changes like the Clean Air Act, which increased the need for metals in auto-catalysts. With the growing popularity of battery electric vehicles, which do not require PGMs, South African producers are actively seeking new applications. Collaborations, such as those between Johnson Matthey and local producers like Sibanye-Stillwater and Valterra Platinum, are aimed at innovating and expanding the market for PGMs.

Additionally, the demand for data storage linked to artificial intelligence is driving the need for special metals, as the miniaturization of conductors requires enhanced materials. Dunne pointed out that using platinum or ruthenium in data storage devices improves density significantly. Furthermore, adjustments in the composition of fiberglass used in circuit boards have led to a resurgence in rhodium usage, which had diminished in favor of platinum previously.

Despite these advancements in PGM demand, gold does not appear to be experiencing similar growth linked to AI technologies. Recent reports indicate a slight decline in gold's technological applications, with Harmony Gold's CEO noting, "I’m not aware of any significant further demand for gold on the back of the AI boom.”

The evolving landscape of the PGM market suggests exciting new opportunities, as these metals adapt to the demands of a future increasingly influenced by robotics and AI. As South Africa contributes approximately 70% of the world's PGMs, the potential for economic growth remains strong amidst these changes.

Source: www.dailymaverick.co.za