Industrial and Platinum Group Metals: The Invisible Commodities of the Modern Economy

Imagine waking up tomorrow and every industrial and platinum group metal simply vanished. No copper wiring, no electric motors, no power grids, no modern machinery. Large parts of the automotive industry would grind to a halt, along with countless chemical production processes — and even many technologies we associate with the future would suddenly become impossible.

What's fascinating is that we use these metals every day and barely think about them. They sit inside our homes, cars, phones, factories, power grids, aircraft and countless machines — some so unremarkable that we'd only notice their value once they were gone. That's exactly what makes industrial metals and platinum group metals so interesting: they're not just commodities. They're part of the foundation of the modern economy.

What are industrial metals?

Key industrial metals include copper, aluminium, nickel, zinc, lead and tin. They're needed in large volumes for industrial applications: copper for electricity, aluminium for transport and construction, nickel for stainless steel and certain battery technologies, zinc for corrosion protection, among other uses.

Their demand is therefore closely tied to economic activity: building factories, expanding power grids or producing new vehicles all require metal. When entire economies industrialise, metal demand can rise enormously.

Copper: the metal of electrification

If one metal captures just how important commodities are becoming for the future, it's copper. It conducts electricity superbly and turns up in power cables, electric motors, transformers, buildings, electronics, power grids and vehicles.

The world is electrifying: more electric vehicles, more renewable energy, more battery storage, more data centres, more power grids. All of these developments need electrical infrastructure — and therefore copper. The International Energy Agency's scenarios expect a marked rise in copper demand as a result; copper could become one of the defining metals of electrification.

Aluminium: the lightweight heavyweight

Aluminium conducts less well than copper, but it has a different decisive advantage: it's light. That makes it valuable for aircraft, cars, trains, buildings, packaging, power lines and solar installations. Wherever weight matters, aluminium can offer a real edge — including in the build-out of modern energy and transport infrastructure.

Nickel: between traditional industry and future technology

Nickel is used in both traditional industries and modern technologies: as a key ingredient in stainless steel and in various battery technologies. That gives it a foot in two worlds — established industry and new technology.

But there is an important point here: just because a metal is needed for a future technology doesn't automatically mean its price has to rise. In commodities, demand isn't the only thing that matters — supply can shift too.

The platinum group metals: precious and high-tech at once

Alongside the classic industrial metals sits a group that's both precious metal and vital industrial metal: the platinum group metals, or PGMs.

These metals share extraordinary physical and chemical properties: some are highly resistant to corrosion, withstand high temperatures, and possess remarkable catalytic properties. That's precisely why tiny quantities of these metals can carry enormous importance in industrial processes.

Platinum: a metal between two worlds

Many people know platinum mainly as a valuable precious metal — jewellery, bars, coins. But it also appears in catalytic converters, chemical plants, glass production, electronics, medical applications and hydrogen technologies.

It's exactly this combination that makes platinum so interesting: it's a precious metal and an industrial metal at the same time, setting it apart from gold, which is demanded predominantly as a store of value and for jewellery. When industry shifts, platinum demand can shift with it.

Palladium and rhodium: invisible, yet economically significant

Palladium became known chiefly through its role in catalytic converters, where it helps convert certain pollutants chemically — a component millions of people use daily without ever thinking about it. A perfect example of how commodity markets work: a metal can be economically vital even when end consumers barely notice it.

Rhodium is also used in certain catalytic converters and is exceptionally rare, with a comparatively small market. When supply or demand shifts meaningfully in such a small market, the effect on price can be enormous — rhodium has seen spectacular price swings in the past as a result. That carries an important point: rarity alone does not automatically make a commodity valuable — a small market can just as easily mean extreme falls and thin liquidity.

Why are platinum metals technically so valuable? — catalysis

A catalyst can enable or speed up a chemical reaction without itself being consumed in the process. That sounds unremarkable — it isn't. Catalysts are essential to many industrial processes, and platinum group metals possess properties that make them especially valuable for certain chemical reactions. Sometimes industry doesn't need tonnes of a metal — it needs a tiny amount of the right metal in the right place. And that can be economically enormous.

Platinum and hydrogen

Certain fuel cells and electrolysis processes can require platinum group metals — platinum in particular plays a key role in fuel cells, while certain electrolysers can also use PGMs. If hydrogen technologies grow strongly in certain areas, this could create additional demand.

But here too: technological development isn't a one-way street. Researchers are simultaneously working to reduce metal use and develop alternative materials. What matters is not just that a technology grows — it is how much metal that technology actually requires per unit.

Why new mines are a problem

Commodities differ from many digital products in a decisive way: a new app can reach millions of users fairly quickly. A new mine is an entirely different story.

If demand grows faster than supply, a structural shortage can result. The International Energy Agency flags supply risk for several key minerals, along with the long lead times required for new projects.

Recycling: the "second mine"

Metals can be reused — which is particularly interesting because it turns old products into a future source of raw material: old cars, cables, electronics, machinery, industrial equipment. What counts as waste today can hold valuable metal tomorrow. You could say today's cities may be tomorrow's mines. The more valuable and scarce a metal is, the more economically attractive recycling becomes.

Industrial metals and the energy transition

The energy transition is often framed as a technology story — but it's just as much a commodity story. Power grids need copper and aluminium, electric vehicles and batteries need various metals, wind and solar installations need large volumes of material, hydrogen technologies may need platinum group metals. The energy transition therefore isn't only a question of which energy source to use, but also: what materials does it take to build that energy system in the first place? That's where a fascinating contradiction emerges — electrifying the economy requires, at least initially, considerably more raw material, not less.

China and the geopolitics of raw materials

Anyone trying to understand industrial metals shouldn't ignore China. The country is a central player across many commodities — both as a major consumer and as a significant processor. The World Bank estimates China accounts for roughly half of global consumption of many base metals. When Chinese industry grows, metal demand can rise; when the economy weakens, the opposite can occur. News about Chinese industrial output or property markets can therefore move metal prices worldwide.

When global production or processing of a metal essential to important technologies concentrates in just a few countries, dependency follows. A trade dispute, an export restriction or a political crisis can then quickly turn a commodity into a geopolitical issue — which is why governments increasingly view critical minerals through the lens of supply security.

How industrial metals are used commercially

Processors, manufacturers and traders source industrial metals, often under long-term offtake agreements or through commodity exchanges. When assessing a mining project, the key questions are whether the product quality meets customer requirements and whether credible offtake arrangements are in place.

It is important to distinguish between the metal and the business producing it. A mining operation also carries management, cost, financing, country and production risks. Commodity-price changes can therefore have a disproportionate effect on operating margins in either direction.

Key questions in project assessment

"Will this metal be needed in future?" is too simple a question. More useful questions include:

• How fast is demand growing, and how quickly can supply grow?
• How high are production costs, and how long does building a new mine take?
• How important is recycling, and can the metal be substituted?
• Which technologies could change demand?
• How concentrated is the supply chain, and what political risks exist?

The more of these questions you can answer, the better you understand the project itself.

A good story is no substitute for solid numbers

Suppose a technology gains broad adoption: the market expects demand for copper, nickel and lithium to rise significantly. New mines may then come online sooner than expected, recycling may expand, and industry may substitute expensive metals with other materials. Supply grows and prices develop differently from the original assumption.

For project assessment, the conclusion is straightforward: a convincing demand story says little on its own about the economics of a particular venture. Cost position, development lead time, permitting status and the speed at which additional supply can reach the market are what matter.

Conclusion: the future is built from metal

When we talk about the future of the economy, we tend to think of artificial intelligence, electric cars or renewable energy. But behind all of these technologies lies a far less glamorous world — the world of raw materials. Before a computer can compute, hardware has to be manufactured. Before an electric car can drive, it has to be built. Before wind can generate electricity, the infrastructure has to exist. Behind the digital future, then, stands a very real physical world made of copper, aluminium, nickel, platinum, palladium, rhodium and countless other raw materials.

The next big technology wave may well begin on a screen. Its physical foundation, however, is built in mines, refineries, factories and recycling plants. Anyone who wants to understand industrial and platinum group metals shouldn't just watch the current price — they should try to understand the bigger story behind it: what does the world need, where does it come from, and how quickly can supply grow? Because the decisive questions are settled in the project itself, not in the market.

For how a mining project develops from discovery to production, read Understanding Mining Projects. For the most important energy commodity of all, read Crude Oil: The Black Gold of the World Economy.

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• Why Copper Is Becoming Increasingly Vital to the Global Economy — the supply side of the copper market in detail.