Hydrogen expansion is under threat due to inadequate supply of valuable metals
The world of hydrogen technologies is gearing up for a significant surge in demand, and one of the key elements driving this growth is a rare precious metal called iridium. This metal, used as a catalyst in electrolysis, is set to see a potential increase in its share price due to the upcoming demand boost.
According to Youn-Chong Choi, global sales manager for 'Hydrogen Systems' at Heraeus, the demand for iridium could significantly exceed supply from 2024 onwards. This prediction comes as the EU aims to build 40 gigawatts of electrolysis capacity for hydrogen production by 2030, a target that could result in an additional demand for 20 to 40 tons of iridium.
Currently, a gram of iridium costs around 55 dollars. With the upcoming demand surge and potential supply shortage, market observers expect further price increases for iridium this decade.
To address this anticipated imbalance, companies like Johnson Matthey, Umicore, BASF, Heraeus, and Johnson Controls are expected to play important roles in increasing recycling activities and developing catalyst technologies for the efficient use of iridium in hydrogen production. These advancements could provide relief from the increased demand for iridium, as well as save precious metals.
Choi notes that the upcoming demand boost for hydrogen technologies is 'not yet fully priced in', indicating that there may be potential opportunities for investors in companies involved in the production or recycling of iridium.
Approximately eight tons of iridium are mined worldwide each year, with about 80% coming from South African mines. The increased recycling of iridium and the development of efficient catalyst technologies could help alleviate the strain on these limited resources.
In conclusion, the hydrogen technology sector is poised for growth, and with it comes the potential for increased demand and prices for iridium. Investment in companies involved in the production or recycling of iridium could be a strategic move for those looking to capitalize on this trend. However, it's crucial to remember that all investments come with risks, and thorough research should be conducted before making any decisions.
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