These two 'minor' PGMs are 'crucial' to the hydrogen economy — Green Rush host Matt Watson

The industrial demand for iridium and ruthenium is outstripping mined supply, pushing the need for recycling, says Green Rush host Matt Watson.

On April 24, Watson recorded an episode of Green Rush with Steven Hazelbaker, COO of Furuya Metals America, a PGM manufacturer and recycler. The topic was the platinum group metals - iridium and ruthenium - and the hydrogen economy.

Watson kicked off the discussion with a chart showing that iridium and ruthenium represent a relatively small part of the PGM basket, around 11%. Iridium is worth USD$1.7 billion, and ruthenium is just over $1 billion, out of a total precious metals value of $395 billion. However, the two so-called "minor" PGM metals are essential to the hydrogen economy. 

Ruthenium's catalytic properties make it effective in proton-exchange membrane (PEM) fuel cells, along with platinum. Iridium acts as a catalyst in a PEM electrolyzer. 

Furuya Metals specializes in ruthenium and iridium manufacturing/ recycling. It dominates the hard-drive sector and manufactures ruthenium sputtering targets and iridium crucibles, which are utilized, for example, in medical lasers used to remove tattoos.  

Furuya refines much of the world's iridium and ruthenium. Only 8.5 to 10 tonnes of iridium are mined yearly, yet Furuya recycles 10 tonnes yearly. "Your recycle rate is more than is being mined," said Watson. Furuya recycles about three times as much ruthenium as is mined, 60 tonnes a year versus 20-22 tonnes. 

Hazelbaker noted that prices drive high recycling rates. "[Iridium is] $5,000 per troy ounce, $465 per troy ounce for ruthenium. It's a key component for our customers to be competitive in their markets," he said. 

Watson pulled up a chart showing around 750,000 ounces of ruthenium are mined per year, yet the demand is more than 2 million ounces. 

"The gross demands are much higher than people realize," he said, adding, "I think both these secondary recycle markets are going to be pressed to grow further over time." 

Listen to Kitco Mining's Green Rush to understand and profit from a once-in-a-century event: the clean energy transition. Each week, host Matt Watson, founder of Precious Metals Commodity Management, will take a deep dive into a metal that will underpin our new electrified world. Green Rush explores the vital role of nickel, copper, lithium, cobalt, silver, platinum group metals, rare earth elements and other metals that power the batteries driving our sustainable future.