Demand outlook for South Africa’s platinum uplifted by China-Toyota hydrogen projec

This audio is brought to you by Astec Industries, a Global Leader in manufacturing equipment for infrastructure, including asphalt production, construction, and material processing, driving innovation and sustainability. A development that is improving the demand outlook for South African platinum group metals (PGMs) is the announcement of a joint venture (JV) between Japan's Toyota Motor Corporation and China's Shudao Investment conglomerate to build a hydrogen fuel cell plant in Chengdu, Chengdu, in China's Sichuan province, is the chosen location of the emerging one-billion yuan facility that will focus on producing fuel cell systems and components for heavy-duty commercial vehicles, amid the bolstering of China's hydrogen ecosystem and support for national carbon neutrality. Scheduled to be operational by year-end, the project will produce hydrogen fuel cell systems, fuel cell stacks, and components to support a wide range of commercial vehicles, including large trucks, dump trucks, buses, and municipal sanitation vehicles. The green electricity and hydrogen required will be supplied from the emerging Chengdu-Chongqing Hydrogen Corridor, which is on its way to becoming a regional hydrogen hub for commercial vehicle applications. Local government support and incentives - such as highway toll reductions for platinum-based fuel cell electric vehicles (FCEVs) - helped to seal the deal that is destined to create one of the world's distinctive hydrogen regions. Research and development (R&D), production, sales, and service operations will be incorporated under one roof, aligning with Toyota's larger strategic objective of contributing to China's 'double carbon' goal of reducing carbon dioxide and achieving net-zero emission, the publication Fuel Cell Works reports. World Hydrogen states in a media release to Mining Weekly that the total number of FCEVs in China has overtaken the corresponding figure for neighbouring South Korea. After this recent turn of events China's claim to being Asia's top hydrogen technology region is now stronger than ever, World Hydrogen adds. With its launch the Mirai car, Toyota pioneered hydrogen mobility and the JV with Shudao Investment Group adds to a growing portfolio that includes previous collaborations with organisations such as the United Fuel Cell System R&D (Beijing) and Huafeng Fuel Cell. With this latest commitment, Toyota cements its ambition to be a central player in the evolution of China's hydrogen supply chain. World Platinum Investment Council (WPIC), encouraged by China's ongoing commitment to hydrogen, said this in response to a request for comment by Mining Weekly: "The announcement that Toyota is committing to a major investment in fuel cell production within China underscores the importance of the Chinese market to the hydrogen outlook. "WPIC forecasts China to be the major driver of the hydrogen economy, making up more than 50% of installed electrolyser capacity globally by 2030, and 32% of hydrogen linked demand for platinum. "Whilst the development of the hydrogen economy in some regions has been slowed by recent economic uncertainties, it is encouraging to see China's ongoing commitment to hydrogen," WPIC research director Ed Sterck stated. WPIC expects hydrogen FCEVs to make up 8% to 12% of the future vehicle market in China. Fuel cell stack costs have already declined by 80% compared with 2018. Current focus is on longevity and achieving 1.8-million kilometres of fuel cell life. Meanwhile, the Guangzhou Futures Exchange (GFEX) has confirmed that physically-settled platinum and palladium futures are heading for launching after two years of development. The contracts have been benchmarked against international exchanges. It is understood that GFEX plans to launch options in addition to the previously-announced futures contracts. GLOBAL GREEN HYDROGEN ACTIVITY In Brazil, China's Envision has joined Fotowatio Renewable Ventures to develop a 500 MW green hydrogen and green a...