SA is one of the world’s leading mineral-rich countries, possessing minerals and metals which will play a pivotal role in future of mobility.
South Africa holds 94% of the world’s platinum group metals (PGMs), such as platinum and palladium, currently used in the production of catalytic converters. With a rise in production of electric vehicles (EVs), the PGM industry is expected to decline in the future. Considering the substantial contributionof PGMs to the South African economy last year – R48.3 billion in total employee earnings, 172 171 employees and total sales of R97 billion – it is critical that the PGM industry prepares for change. SA is one of the world’s leading mineral-rich countries, possessing minerals and metals which will play a pivotal role in future of mobility. If there is a declining demand for catalytic converters in the future, where do we see our platinum industry fitting into the value chain?
A potential opportunity lies in hydrogen fuel cell technology for electric vehicles. Newer technologies include lithium as a key component. Unfortunately, SA does not have significant lithium reserves. We do,however, produce other materials used in the construction of batteries – like iron, manganese and nickel.
In order to identify the opportunities, KPMG South Africa discusses two possible ways the mining and minerals industry can adapt.
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