The IPA, Heraeus Precious Metals, and Johnson Matthey published a position paper “Fuel Cell Vehicles to Boost European Competitiveness and the Green Deal”, on boosting European competitiveness in fuel cell vehicles (FCEVs). It outlines the support needed to meet Europe’s 2030 zero-emission goals and ensure sustainable zero-emission mobility by 2050.

“Platinum group metals (PGMs) are indispensable in the energy transition,” explains Philipp Walter, Executive Vice President of Business Line Hydrogen Systems at Heraeus Precious Metals. “To secure the scale-up of green hydrogen, we need a stable supply of PGMs which requires management measures for the PGM supply chain.”

The European Green Deal and Sustainable Mobility Strategy sets ambitious targets for transport emission reduction. While it calls for the deployment of zero-emission road vehicles (ZEVs), the reality is that deployments are heavily skewed towards BEVs, with FCEVs only seen as a longer-term necessity, particularly in the passenger vehicle segment.

The association’s paper highlights three reasons for timely FCEV market development:

1. Solely supporting BEVs risks supply chain bottlenecks for critical metals like copper, nickel, and lithium.
2. Investing in FCEVs leverages local technology, creates jobs, and prevents other countries from outcompeting Europe.
3. Developing FCEVs ensures a continued supply of iridium, needed as platinum demand shifts from catalytic converters.

Alastair Judge, Chief Executive, Platinum Group Metal Services at Johnson Matthey, said “Platinum Group Metals have a crucial role in the energy transition, and we need the correct policies in place to make optimum use of these finite resources. Supporting the growth of both FCEVs and BEVs will allow for the sustainable development of clean hydrogen technologies and provide the necessary confidence in the market to continue investment in PGM mining.” 

Investing in FCEVs is economically sensible, as building hydrogen refueling stations, though costly, avoids the expensive grid upgrades needed for widespread BEV adoption. The paper advocates for a two-track strategy prioritizing both FCEVs and BEVs, urging policymakers to support FCEV development and create a level playing field for its infrastructure.

The high-level summary paper can be found here and the full paper with supporting detail can be found here.