PGM cost-in-use: why raw material price is the wrong metric

Platinum group metals (PGMs) are already used across a wide range of established applications and will play an important role in newer technologies, such as fuel cell vehicles (FCEVs). Yet, as demand in these applications grows, questions about their cost and availability continue to shape debate around its future use.

Research at Johnson Matthey suggests these concerns need to be viewed in context. PGMs come from a resilient, regulated mining base and are supported by an established recycling network, so availability is unlikely to constrain the growth of PGM-based technologies. Should the price rise, the small and steadily declining quantities required to achieve the required performance mean that the impact on the overall cost of equipment will be mitigated. Their high and recoverable value – even when used in tiny quantities - also creates a strong incentive for recycling, reducing net demand over time.

The key question, then, is not simply how much PGMs costs, but what they contribute over the lifetime of a technology. In this blog, we focus on platinum, why it can be viewed as an investment in a recoverable material rather than simply an expense, and why cost in use offers a more meaningful measure than the price of the metal alone.

Cost-effectiveness in fuel cell vehicles

Looking to the future, FCEVs are expected to be the largest new source of platinum demand, in part due to the scale of the road vehicle market. JM's current modelling projects that platinum consumption in FCEVs (which rely on proton exchange membrane (PEM) fuel cells) will outweigh the demand for platinum from green hydrogen electrolysis and non-road-vehicle fuel cell applications combined. This heavy reliance on platinum has led many to believe that FCEVs cannot be cost competitive, but closer examination is needed. [i]

Contrary to common assumption, platinum does not make fuel cells expensive. By JM's calculations, a gasoline car contains on average around 5g of PGMs in its catalytic converter, worth approximately $300 at today's prices; a fuel cell car today contains around 10g to 20g of platinum in its fuel cell stack, worth approximately $600-$1200. A comparable battery electric vehicle, by contrast, contains no PGMs but over $2,000 of critical metals across its battery pack. 

^{*based on PGM prices in September 2026}

This would suggest that fuel cell vehicle prices are high today because of low production volume, not platinum content. In fact, JM estimates that PGM cost contributes less than 5% to the overall cost of a FCEV or electrolyser. [i]

Today, internal combustion engine (ICE) vehicles on the road use a few grams of PGM in their catalytic converters, and the fuel cell cars of the future are expected to require a comparable order of magnitude of platinum in their stacks. A reasonable conclusion is that the PGM cost on future fuel cell vehicles will be broadly comparable to the PGM cost on conventional ICE vehicles today. [i]

Circularity is another important advantage. Even at the end of a fuel cell or electrolyser stack’s useful life, platinum remains recoverable for use in new stacks, with no loss of properties or efficacy. The retained value of the metal provides a clear incentive for recycling, reducing net demand and allowing it to be treated as a recoverable asset rather than a consumable expense. [i] [ii]

The benefits extend beyond recycling. While recycling allows platinum to be recovered and reused, thrifting focuses on reducing the amount required without compromising performance. Platinum loadings in fuel cells, and iridium loadings in electrolysers, have already fallen significantly. Further optimisation is expected to reduce them further while improving cell efficiency. [i]

Heavy-duty vehicles (HDVs): an important subset

Heavy-duty vehicles are expected to account for a significant share of the FCEV market as it expands through the 2030s and 2040s. These vehicles place particularly demanding requirements on their energy systems, including high durability, competitive lifetime costs and access to reliable refuelling infrastructure. [iii]

An analysis by US truck manufacturer Kenworth comparing diesel, battery-electric and hydrogen trucks found that hydrogen trucks currently have the highest upfront cost. However, the US Department of Energy has set a fuel cell system cost target of $60/kW to reach parity with diesel, based on a diesel engine cost of $25,000 for a 390 kW system. Reaching this target will depend on higher production volumes, greater power density and further reductions in platinum loading. [iii]

A specialised metal for specialised processes

The value of PGMs is not limited to established applications such as fuel cells and electrolysers. Their distinctive properties are also supporting emerging fields including spintronics and the photocatalytic conversion of biomass into hydrogen. 

In spintronics, the properties of PGM-containing materials illustrate the cost-in-use principle well: iron-rhodium (FeRh) derivatives, for example, can produce spin-torque efficiencies four to five times higher than those found in commercial devices today. The resulting performance gain may therefore outweigh the initial material cost. [iv]

The same principle applies to PGM-based photocatalysis: commercial viability will depend on the performance and value delivered by the catalyst, rather than the price of the raw metal in isolation. [v]

Read the full whitepaper

For further analysis and worked examples exploring platinum’s cost in use across fuel cell and electrolyser applications, read our whitepaper.