Key Takeaways:
China Platinum Market at a Glance: AI infrastructure spend — $300 billion through 2030 | Investment demand — less than 1 tonne (2019) to ~13 tonnes (2025) | Supply deficit — 4th consecutive year in 2026 | Inventories — below 3 months of global demand
Platinum could become China's next strategic precious metal as the country's $300 billion AI infrastructure push drives industrial demand, the World Platinum Investment Council said.
"The prospect of significant growth from AI-related platinum demand is an overlay that the market is only just beginning to appreciate," Trevor Raymond, chief executive officer at the WPIC, said. "It has not yet been fully factored into platinum's supply/demand outlook."
Beijing has earmarked nearly $300 billion for AI infrastructure development through 2030, creating demand for platinum group metals across semiconductor manufacturing, hard disk drives, industrial crystal production, printed circuit boards and optical interconnects, according to the WPIC report released Thursday. Platinum is also expected to benefit from China's expanding hydrogen economy, where the metal serves as a key component in both hydrogen production and fuel-cell electric vehicles.
The strengthening demand outlook comes as the platinum market faces persistent supply constraints. WPIC forecasts the market will post its fourth consecutive annual supply deficit in 2026, reducing above-ground inventories to less than three months of global demand by year-end. Mine supply remains constrained by long development timelines and concentrated production in deep underground operations, the council said.
Beyond industrial applications, China has become the world's largest market for newly minted platinum bars and coins since 2023, the WPIC said. Physical investment demand grew from less than one tonne in 2019 to nearly 13 tonnes in 2025. During Shanghai Platinum Week, the council announced a strategic partnership with Beijing Caishikou Department Store to launch the retailer's first platinum investment bar series, placing platinum alongside its established gold and silver bullion products.
The WPIC said it plans to work with Chinese financial institutions to broaden investor access through platinum accumulation plans and exchange-traded funds, further integrating the metal into the country's precious metals investment market.
"On current fundamentals, the value proposition for platinum remains compelling," Raymond said, noting that structurally tight supplies continue to underpin the market. Platinum prices traded around $1,600 an ounce, compared with gold above $2,400 an ounce, with analysts expecting prices to remain supported by strong fundamental demand over the long term despite headwinds from persistent inflation fears that have forced central banks to adopt tightening biases.
The WPIC's analysis suggests platinum could mirror gold's evolution in China, where the country has become one of the world's largest consumers of physical gold over the past two decades. Industrial policy centered on AI, advanced manufacturing and hydrogen technology could make platinum another strategically important hard asset, the council said.
This article is for informational purposes only and does not constitute investment advice.
