ROBOCASH : The ‘Terminator’ has surprising implications for SA’s platinum group metals industry
Humanoid robots – if forecasts for their production and commercialisation play out – could potentially play the same role for platinum group metals demand in coming decades that the Clean Air Act did in the 1970s. And South Africa’s PGMs no longer carry the taint of apartheid and the ruthless exploitation of a Black migrant labour force that made America’s air cleaner.
Platinum group metals (PGM) industry in South Africa could face a significant demand boost from humanoid robots as the "Rise of the Machines" unfolds, according to a recent report. The robots themselves require platinum for their silicone skins and platinum is used to cure the silicone, as explained by Northam Platinum CEO Paul Dunne.
The AI revolution is ushering in new applications for PGMs, which could significantly reshape the industry's demand landscape. According to the report, 2025 is expected to mark the "genesis year" for humanoid robot production, with global installations reaching 16,000 units. China accounted for more than 80% of this total.
While copper is another metal likely to see increased demand due to humanoid robots, the primary focus is on platinum. This metal is essential for coating the robots' skins and curing the silicone used in their construction. The scarcity of platinum in robot production could potentially lead to supply constraints and higher prices over the long term.
The shift in fibreglass production, driven by the desire for higher-quality materials, has also resulted in increased demand for platinum. Chinese manufacturers reduced the rhodium content in fibreglass to boost platinum levels, ultimately leading to a price collapse for rhodium. As data storage requirements continue to grow due to the AI boom, demand for platinum in this sector is expected to rise.
Meanwhile, gold demand related to AI technology has not shown significant growth. This may be attributed to the high gold price, making its use in technological applications costlier.
In conclusion, the AI revolution and the rise of humanoid robots could potentially reshape the PGM industry's demand landscape, with South Africa's PGMs playing a key role in this new era.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
