Platinum prices extended their advance to a fresh three-year high, supported by growing use of the metal in hydrogen fuel cells even as demand from traditional catalytic converters softens.

The World Platinum Investment Council flagged a widening supply deficit, with South African output still below pre-pandemic levels due to persistent power disruptions at major mining regions.

Automakers’ continued shift toward battery-electric vehicles has trimmed catalytic converter demand, but the shortfall has been more than offset by fresh orders from electrolyzer manufacturers scaling up green hydrogen projects in Europe and the Middle East.

Analysts note that platinum’s discount to palladium has narrowed sharply this year, with some forecasting a full price crossover if hydrogen-related demand keeps accelerating.