- The surge in platinum group metal prices can be traced to a combination of supply disruptions and rising demand.
- As a company focused on developing high-quality platinum group metal deposits in South Africa, PLG is particularly well positioned to benefit.
- The company’s Waterberg project is designed for mechanized, low-cost production of platinum group metal concentrates
Platinum has captured the attention of investors, industrial users and strategic sectors alike in 2025, emerging as one of the top-performing precious metals. Prices have surged more than 40% in just eight weeks, a rally that represents the largest gain in decades, highlighting a rare convergence of global supply constraints, growing industrial demand, and renewed investor interest (https://ibn.fm/371AL). Palladium prices have risen 13% in the past four weeks. For companies with high-grade platinum group metal resources, this price momentum represents both an opportunity and a validation of strategic investments in platinum and palladium production.
Platinum Group Metals (NYSE American: PLG) (TSX: PTM), a company focused on developing platinum group metal deposits in South Africa, is particularly well positioned to benefit. With its flagship Waterberg project, PLG is advancing production of platinum, palladium, rhodium, and gold as well as base metals copper and nickel, to meet rising global demand, particularly in automotive, industrial and defense applications.
The surge in platinum group metal prices can be traced to a combination of supply disruptions and rising demand. South Africa, which accounts for more than 70% of global platinum production and 40% of global palladium production, has faced challenges that have restricted recent output. Power outages, water shortages and scheduled maintenance at major refineries contributed to a 24% drop in mined platinum group metals output in April 2025 compared to the same period in 2024. Global primary platinum group metal production could fall by as much as 20% by the end of this decade, widening a supply deficit, Valterra Platinum (VALJ.J), CEO Craig Miller said on September 18 (https://ibn.fm/theGS).
These shortfalls are occurring at a time when investor sentiment and industrial demand are both increasing, creating upward pressure on prices. Hedge funds, commodity traders and institutional investors have increasingly turned to platinum after years of underperformance relative to gold and silver, seeking both exposure to physical metal and potential capital gains. June 2025 alone saw a 28% increase in platinum prices, marking the strongest monthly performance since 1986 (https://ibn.fm/Tk1Yh).
Industrial demand has been a key factor in driving platinum prices higher (https://ibn.fm/cTT22). Automotive manufacturers rely on platinum and palladium for catalytic converters in hybrid and conventional vehicles, and the shift toward hydrogen fuel cell technology has further intensified platinum demand. Platinum is essential in proton exchange membrane (PEM) fuel cells, which are being adopted for applications ranging from industrial machinery to aerospace and defense platforms, providing long operational ranges and energy-efficient performance. Beyond the automotive sector, platinum’s industrial applications in electronics, chemical processing and specialized manufacturing continue to create steady demand, further supporting prices in the face of tight supply.
Platinum Group Metals is strategically positioned to benefit from these dynamics. The company’s Waterberg project is designed for mechanized, low-cost production of platinum group metal concentrates, including gold, copper and nickel as valuable byproducts (https://ibn.fm/oB5r2). By focusing on operational efficiency and sustainability, the company aims to provide a reliable supply of critical metals for industrial and strategic uses, positioning itself as a long-term player in the evolving platinum market.
As platinum group metal prices continue to rise, the implications for global supply and demand are significant. Higher prices often encourage recycling, stimulate investment in platinum-backed financial products and incentivize production expansion from mining companies. Industrial users must balance rising costs with the operational and strategic value that platinum group metals provide, particularly for high-performance applications where alternatives are limited. In this environment, companies such as Platinum Group Metals Ltd. with secure, high-quality resources and a clear production strategy, are likely to see both increased industrial demand and heightened investor interest.
Platinum Group Metals Ltd. is not only advancing its Waterberg project to meet current market needs but is also positioning itself for long-term growth by ensuring that its metals serve industries where performance, reliability and strategic importance are critical. With South Africa remaining the dominant producer of platinum and a significant producer of palladium, amidst ongoing global supply constraints, PLG’s approach to efficient, sustainable extraction, coupled with its strategic resource base, gives the company a distinct advantage in capturing value from the current market conditions.
For more information, visit www.PlatinumGroupMetals.net.
NOTE TO INVESTORS: The latest news and updates relating to PLG are available in the company’s newsroom at https://ibn.fm/PLG
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