The Recovery Revolution Sparked by Platinum Group Metals

 

 

Recent global trade wars and geopolitical tensions have seen the imposition of a range of export controls on critical materials. These have resulted in significant disruptions to the supply chains of various critical materials, ranging from platinum group metals (PGMs, Pt, Pd, Rh and Ir) and lithium-ion batteries to rare-earth magnets and semiconductor components. The criticality of each of these materials stems from their global economic significance being undermined by supply risks resulting from the highly geographically localised nature of primary mineral deposits. Consequently, attention is increasingly turning towards critical material recovery from secondary (anthropogenic waste) sources to provide strategic insurance against future supply risks.

 

Moving forward, valuable lessons can be learned from the well-established market for the recovery of critical platinum group metals (PGMs), a notable success story which provides a blueprint for the wider critical material recovery market. IDTechEx's recent report, "Critical Material Recovery 2026-2046: Technologies, Markets, Players" provides comprehensive market analysis, key players and granular 20-year critical material recovery market forecasts that are grounded in primary research. The report also includes deep-dives on the emergence of new extraction technologies and provides strategic insights into how these will shape the future evolution of the critical material recovery market.

 

 

PGMs have been widely applied in a range of sectors ranging from automotive emission control and jewellery to electronics and anti-cancer drugs due to their high catalytic and electrical activity. Notably, PGM deposits are highly localised, with South Africa being the primary supplier (60% of Pt production, >90% of Ir), followed by Russia. Consequently, PGMs have historically been subject to significant price volatility. This critical combination of commercial utility and supply chain concerns alongside high intrinsic value (PGMs sell for US$10,000-US$100,000/kg) has provided a strong economic incentive for the effective recovery of PGMs.

 

IDTechEx research indicates that between 21-34% of global PGM demand is now satisfied by recovery from secondary sources, with players such as Umicore, DOWA, Johnson Matthey and Tanaka Precious Metals able to recover PGMs in >99.95% purity using high temperature smelting, hydrometallurgy, solvent extraction, and selective precipitation methods. Despite the comparatively low volume of PGMs that are recovered (171 tonnes expected in 2026 vs 406,400 tonnes of lithium-ion battery materials), the high intrinsic value of PGMs means their recycling will account for 73% of total critical material recovery market value in 2026. PGM recycling is the most commercially mature and established critical material recovery market, with IDTechEx forecasting that market size is expected to exceed US$10B by 2046.

 

 

Automotive emission control is expected to remain key to the continued secondary supply of PGMs (Pt, Pd and Rh), with spent automotive catalysts expected to provide 71% of all recycled PGMs in 2026 (up from 50% in 2010). Peak car sales are yet to saturate, ensuring the continued production of catalytic converters with 12 to 15-year lifetimes that should provide ample secondary PGM supplies into the 2040s.

 

IDTechEx notes that the global transition towards EVs is expected to have a similar downstream effect on the recovery of lithium-ion battery materials, the market value of which is forecasted to exceed that of PGMs by 2034 and account for 80% of all global critical material recovery market value by 2046. However, a sustained secondary supply of PGMs beyond the 2040s is expected as the first wave of hydrogen fuel cells and electrolysers (which employ PGMs as catalysts for water-splitting) begin to reach their end of life.

 

 

Notably, both iridium and platinum are expected to become more critical in the coming years due to their pivotal catalytic functionality within the growing hydrogen economy. In particular, iridium is predominantly produced in small quantities (6.5-9 tonnes per annum) exclusively as a by-product of the extraction of other more abundant metals (Pt, Ni and Cu), with 80-95% of production concentrated in South Africa. These constraints confer particular importance to the effective recovery of iridium from secondary streams.

 

While current iridium recycling capacity remains limited, this represents a growth opportunity: IDTechEx forecasts that recycling expansions will enable the recovery of 4.1 tonnes of iridium by 2046 (2.7x the expected 2026 volume of 1.5 tonnes), corresponding to a CAGR of 5.1% that exceeds the more established recovery markets for other PGMs. Major players are well aware of the long-term risks posed by constrained iridium supplies, and are actively working to ensure this can be mitigated through circular recovery methods. This demonstrates the un-tapped value that can be found by improving critical material recovery rates, with IDTechEx forecasting that over US$66B of total critical material value will be recovered from waste annually by 2046.

 

For more information on PGM recovery, market trends and future critical material recovery opportunities, please see the IDTechEx market report on "Critical Material Recovery 2026-2046: Technologies, Markets, Players". For more information on IDTechEx's other reports and market intelligence offerings, including lithium-ion batteries, rare-earth magnets and semiconductor components, please visit www.IDTechEx.com/Research.

 

IDTechEx guides your strategic business decisions through its Research, Subscription and Consultancy products, helping you profit from emerging technologies. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.