Platinum Group Metals (PGMs)
Context:
The Artificial Intelligence (AI) revolution is creating spillover effects in global commodity markets.
Automakers like Maruti Suzuki are flagging margin pressures due to the rising costs of PGMs, a trend partly attributed to the insatiable demand for infrastructure components like AI memory chips.
About Platinum Group Metals (PGMs):
The PGM family consists of six chemically and structurally similar elements:
Platinum (Pt)
Palladium (Pd)
Rhodium (Rh)
Ruthenium (Ru)
Iridium (Ir)
Osmium (Os).
They are among the rarest elements on Earth.
They are mined from primary deposits (e.g., the Bushveld Complex in South Africa) or extracted as by-products from Magmatic Nickel-Copper deposits.
Key Properties:
They possess "outstanding catalytic activity," making them indispensable for chemical reactions.
They exhibit high electrical and thermal conductivity, chemical inertness (resistance to corrosion), and extremely high melting points (ranging from 1,554°C for Palladium to 3,050°C for Osmium).
Specific elements like Platinum and Iridium are highly biocompatible.
Major Applications:
AI Infrastructure:
A rapidly expanding demand vector is the electronics sector, where PGMs are used in AI memory chips and computing infrastructure.
Automotive & Catalytic Converters:
They remain critical inputs for vehicle manufacturing.
Their catalytic properties are essential for emission control systems in automobiles.
Electrification:
Along with Copper, PGMs are vital for the broader energy transition, including EVs, renewables, and the electrification of military defense systems.