Platinum sector gets major boost from EU subsidies

The South African platinum sector, which is reliant on the catalytic converter market for its profit margin, has been under pressure from the growing electric vehicle market, which threatens to make that sector obsolete. But for the past few years, the ANC government has been lobbying on their behalf for state-backed felief from the EU, and have recently found relief.

The EU-South Africa Summit in Cape Town on March 14, 2025, highlighted a major boost for South Africa’s platinum group metals (PGMs) through a €4.7-billion EU investment package focused on green hydrogen and clean energy.

European Commission President Ursula von der Leyen emphasized South Africa’s abundant clean energy resources and our 91% share of global platinum group metal (PGM) reserves, crucial for the hydrogen value chain, from production to fuel cells. PGMs play a key role in hydrogen technologies, including electrolysers, fuel cells, and midstream applications like ammonia cracking and liquid organic hydrogen carriers (LOHC), supported by companies like Anglo American Platinum and AP Ventures.

The Clean Trade and Investment Partnership, a first-of-its-kind agreement, aims to enhance local production, create jobs, and support South Africa’s Just Energy Transition, with €4.4 billion allocated to renewable energy projects. The initiative aligns with the EU’s Global Gateway strategy and the Scaling up Renewables in Africa campaign.