South Africa is seeking to use its position as the world’s dominant supplier of platinum-group metals to strengthen economic ties with both the United States and China, as demand for the minerals grows across the automotive, technology, defence and clean-energy industries.
According to a report by Semafor published on September 21, South African officials are positioning platinum and other critical minerals at the centre of their trade discussions with Washington and Beijing. The government is particularly seeking investment that would allow more minerals to be processed within South Africa rather than simply being exported as raw materials.
Platinum-group metals, commonly known as PGMs, include platinum, palladium, rhodium, ruthenium, iridium and osmium. They are valued for their ability to withstand high temperatures, conduct electricity and resist corrosion.
The metals have applications across several industries. In the United States, platinum is used in automotive catalytic converters and defence equipment, while platinum-group metals are also used in components linked to data centres and advanced technologies.
China has a strong interest in platinum for its growing green-hydrogen industry. The country has also increased imports of unprocessed platinum and palladium in recent years.
South Africa has a significant advantage because its Bushveld Igneous Complex contains about 80 per cent of the world’s known platinum-group metal reserves, according to the report. The country’s mineral resources therefore give Pretoria an important position in discussions over future supplies.
South African officials want American companies to invest directly in the country’s mining and processing industries. Rather than focusing only on agreements to purchase minerals, Pretoria is encouraging foreign investors to establish smelters, factories and other processing facilities locally.
Kaamil Alli, spokesman for South Africa’s trade minister, said discussions with US companies interested in securing critical-mineral supplies were ongoing.
The government believes greater local processing could help South Africa capture more value from its mineral resources while supporting industrial development and employment.
The push comes as South Africa manages complicated trade relationships with both Washington and Beijing.
The United States has imposed tariffs on South African goods, while China has expanded preferential access for African imports. At the same time, both countries have strategic reasons to secure reliable supplies of critical minerals.
South Africa’s trade ministry has previously highlighted the importance of platinum-group metals to American manufacturing, defence, technology and energy industries. The ministry also argued that South Africa has maintained reliable supplies of several minerals considered critical by the United States.
The country is therefore seeking an investment-led trade relationship, with foreign companies encouraged to invest in processing and manufacturing inside South Africa.
The approach could also support the government’s broader goal of increasing beneficiation — processing minerals locally before exporting them — instead of relying heavily on the export of raw materials.
China’s demand presents another major opportunity. Beijing has identified green hydrogen as an area for future industrial development, and platinum is an important material in hydrogen technologies.
China has also become an increasingly important trading partner for Africa. Its demand for minerals and other commodities has made the country a major source of investment and trade across the continent.
South Africa is therefore attempting to maintain relationships with both major economies while using its mineral resources to attract investment.
The country’s platinum industry could also benefit from increased demand linked to artificial intelligence infrastructure. According to Semafor, platinum and ruthenium are used in electronic components associated with AI-training hardware, while iridium has applications in advanced chipmaking.
However, the future level of demand remains uncertain. The growth of green hydrogen technology in particular depends on costs, infrastructure and the pace at which the technology is adopted.
South African officials are nevertheless continuing negotiations with US businesses. Further discussions were expected to take place in New York during the United Nations General Assembly week, where senior South African trade officials planned meetings with American business representatives.
For South Africa, the objective is not simply to sell more platinum. The government wants mineral exports to generate greater investment, processing activity and employment within the country.
The strategy also reflects the wider competition among major economies to secure reliable supplies of critical minerals needed for manufacturing, energy and advanced technology.
With South Africa holding a large share of global platinum-group metal reserves, its ability to attract investment into local processing could influence how much economic value the country receives from its mineral wealth.
The developments show that platinum is becoming increasingly important not only as a commodity but also as a strategic resource in global trade and industrial development.
