The slowdown in the adoption rate of BEVs has granted some reprieve to the PGM industry
Photo by: Bloomberg
The slowdown in the adoption rate of battery electric vehicles (BEVs) has granted some reprieve to the platinum group metals (PGM) industry; however, with zero-emission mobility still being pursued, stakeholders should prepare their activities and strategies for this future.
This was highlighted by speakers during the 2025 PGMs Industry Day, in a session on the outlook for internal combustion engines, BEVs and fuel cell electric vehicles and the implications for PGMs.
McKinsey and Company partner Jakob Fleischmann explained that the slowdown meant that the shift was still happening, however, at a slower pace than was previously projected.
Toyota South Africa Motors new-energy business development senior manager marketing Anton Smalberger added that BEV customers were now not necessarily driven by “green” priorities, but rather, by value, mainly concerned with the vehicle’s range, recharge time and resale price.
He said that, without incentives, BEVs did not present a cost-friendly alternative, and they were also resold at a considerable loss, which was hampering adoption.
BASF Environmental Catalyst and Metal Solutions precious metals market analyst Toby Green added that the switch to adopting other technologies, such as hybrid electric vehicles, was also impacting on the market.
Fleischmann pointed out that the slowdown meant that the PGMs industry hasd more time to continue to meet demand for catalytic converters used in ICE vehicles.
Green said that the current situation provided a medium-term reprieve for the PGM market, however, he emphasised that it needed to remain disciplined, as the demand would not persist indefinitely, with BEV growth projected in the future, albeit at a slower rate. 