South Africa is by far the world’s top platinum-producing country, according to US Geological Survey data, accounting for about 74 percent of global production. The country also holds the largest-known reserves of platinum-group metals. In 2022, South Africa produced an estimated 140,000 kilograms of the precious metal, down from 142,000 kilograms the previous year. Production fluctuations from the world’s top platinum-producing countries have been a common trend over the years. According to the World Platinum Investment Council (WPIC), which provides quarterly market overviews, the platinum market is expected to be in a deficit of 983,000 ounces in 2023 as demand grows by 28 percent and supply decreases by 1 percent from the previous year. “Q1’23 saw a surge in investor interest, driven by heightened global uncertainty, platinum’s strong demand growth and concerns about risks to mine supply,” notes the WPIC in a report. “Again, this trend is expected to continue in 2023. The result will mean net investment demand of 433 koz in 2023 — a swing of 1,073 koz on 2022.” The automotive industry is the world’s largest consumer of platinum, using the metal in catalytic converters for vehicle exhaust systems. Demand from this sector is “expected to rise by 12 (percent) in 2023 to 3,255 koz driven by a number of factors,” as per the WPIC. In addition, the firm forecasts that industrial demand will hit another record year, with projected growth of by 17 percent year-over-year to 2,628,000 ounces. The transition to a green economy has created another growing market for platinum. Platinum-based electrolyzers are used to separate hydrogen from water, and that pure hydrogen can then be used in vehicles powered by fuel cells. Platinum is also used to fabricate fuel cells themselves. In a 2021 interview with the Investing News Network (INN), Trevor Raymond, director of research at the WPIC, noted that the adoption of hydrogen fuel cell technology could add 2 million to 4 million ounces of platinum demand in the next decade. The use of platinum-based electrolyzers to produce the hydrogen is seen generating 600,000 ounces of additional platinum demand in that same time period. More recently, the WPIC noted that platinum demand from proton exchange membrane electrolyzers and fuel-cell electric vehicles is expected to become "a meaningful component of global demand by 2030 and potentially the largest segment by 2040."