China's AI ambitions could make platinum the next strategic precious metal after gold - WPIC

China’s evolving influence in PGM markets was a dominant theme to emerge from the WPIC’s annual Shanghai Platinum Week, where industry leaders highlighted China's 15th Five-Year Plan as a major catalyst for future platinum consumption.

According to the WPIC, Beijing has earmarked nearly $300 billion for AI infrastructure development through 2030, creating new demand for platinum group metals across a wide range of technologies, from semiconductor manufacturing and hard disk drives to industrial crystal production, printed circuit boards, optical interconnects and hydrogen-powered backup systems for data centers. Platinum is also expected to benefit from the rapid expansion of China's hydrogen economy, where the metal plays a critical role in both hydrogen production and fuel-cell electric vehicles.

"The prospect of significant growth from AI-related platinum demand is an overlay that the market is only just beginning to appreciate," said WPIC Chief Executive Officer Trevor Raymond. "Crucially, it has not yet been fully factored into platinum's supply/demand outlook."

The comments suggest platinum could increasingly mirror gold's evolution in China. Over the past two decades, the country has become one of the world's largest consumers of physical gold as investors sought portfolio diversification and policymakers steadily increased official reserves. Now, industrial policy centered on AI, advanced manufacturing and hydrogen technology could position platinum as another strategically important hard asset.

The strengthening demand outlook comes as the platinum market is already facing persistent supply constraints.

WPIC forecasts the platinum market will post its fourth consecutive annual supply deficit in 2026, further reducing above-ground inventories to less than three months of global demand by year-end. At the same time, mine supply remains largely unable to respond quickly to higher prices because of the industry's long development timelines and the concentration of production in deep underground operations.

"On current fundamentals, the value proposition for platinum remains compelling," Raymond said, noting that structurally tight supplies continue to underpin the market.

While the supply outlook remains constrained, mining executives speaking at the conference expressed confidence that existing operations and brownfield expansion projects will be able to meet longer-term demand growth.

Beyond industrial demand, the conference highlighted growing investment interest in platinum in China.

WPIC noted that China has become the world's largest market for newly minted platinum bars and coins since 2023. Physical investment demand has grown from less than one tonne in 2019 to nearly 13 tonnes in 2025. During Shanghai Platinum Week, the council also announced a strategic partnership with Beijing Caishikou Department Store (Caibai) to launch the retailer's first platinum investment bar series, placing platinum alongside its established lineup of gold and silver bullion products.

The council said it also plans to work with Chinese financial institutions to broaden investor access through platinum accumulation plans and exchange-traded funds, further integrating the metal into China's growing precious metals investment market.

Although sentiment during the conference was optimistic, analysts note that the precious metal continues to struggle as persistent inflation fears have forced central banks to adopt tightening biases, raising the opportunity costs of holding real nonyielding assets. However, analysts expect prices to remain well supported by robust fundamental demand over the long term.

The latest WPIC analysis comes as platinum prices continue to struggle around $1,600 an ounce.