ROBOCASH : The ‘Terminator’ has surprising implications for SA’s platinum group metals industry

South Africa's platinum group metals (PGM) industry is poised to play a pivotal role in the burgeoning era of artificial intelligence and robotics, according to recent statements from industry leaders. The demand for platinum, a critical component in the production of robotic skins, is expected to significantly impact the country's PGM market, offering new opportunities amid shifting global dynamics. During a media roundtable on 28 August, Northam Platinum CEO Paul Dunne highlighted the importance of platinum in the manufacturing process of humanoid robots. He explained that the silicone used for robotic skin requires platinum to cure effectively, ensuring the highest quality finish. Unlike traditional applications such as catalytic converters, where platinum can be recycled, the platinum used in robotics is consumed entirely, leading to potential changes in supply and demand dynamics. The emergence of humanoid robots marks a significant milestone in technological advancement, with 2025 being identified as the genesis year for commercialization. According to Counterpoint Research, global installations of humanoid robots reached 16,000 units in 2025, with China accounting for over 80% of this figure. As the production of these robots increases, so too does the demand for materials essential to their construction, including both copper and platinum. While much attention has been given to copper due to its extensive use in wiring, platinum is equally vital. The catalyst for previous demand surges in PGMs came from the 1970 US Clean Air Act, which spurred the need for automotive catalytic converters. However, as battery electric vehicles (BEVs) become more prevalent, requiring no PGMs, South African producers are actively seeking new applications for their products. Collaborations between companies such as Johnson Matthey, Sibanye-Stillwater, and Valterra Platinum aim to explore innovative uses for PGMs through research and development efforts. These partnerships are crucial as they seek to establish new markets for the metals, particularly in light of the anticipated growth in the robotics sector. In addition to robotics, the AI revolution is generating new demands for PGMs in areas such as data storage and electronics. Dunne noted that advancements in data storage technology require specialized metals to enhance performance. Specifically, the inclusion of ruthenium or platinum on the surfaces of data storage disks improves the density of information stored, thus increasing efficiency. Fiberglass, commonly used as an insulating base in electronic circuit boards, also benefits from the presence of certain metals. High-quality fiberglass production necessitates the use of rhodium, which helps manage heat dissipation effectively. Recent observations indicate a shift among Chinese manufacturers towards reducing rhodium content while increasing platinum usage in their alloys, signaling a change in material preferences within the industry. This evolving landscape presents both challenges and opportunities for South Africa's PGM industry. With the nation responsible for approximately 70% of global PGM supplies, the potential for growth is substantial. As new technologies emerge and reshape the demand for specific metals, the ability of South African producers to adapt and innovate will be crucial in maintaining their position in the global market.