WPIC – Platinum Perspectives Politics and Platinum, June 2024

The recent announcements of US and EU tariffs on Chinese vehicle imports, along with political changes in Europe and South Africa, have the potential to positively impact the investment case for platinum. The increase in tariffs on Chinese BEVs by the US and EU could lead to higher demand for platinum in the automotive sector if BEV uptake slows down in these markets. Additionally, potential economic liberalisation and reforms in South Africa, under a government of national unity, may further reduce PGM mine supply in the country. These developments could support platinum's investment case, especially if automotive PGM demand remains strong beyond 2030 due to political shifts in the EU and delays in the ban on ICE vehicles. The formation of a government of national unity in South Africa could also lead to economic liberalisation and reforms in key sectors, ultimately strengthening the currency and potentially impacting SA PGM miners. Overall, improved governance in South Africa and sustained automotive PGM demand are factors that could bolster platinum's investment appeal.