(Yicai Global) Oct. 21 -- The price of platinum, a key catalyst in hydrogen fuel cells, is expected to go on rising through next year, as China’s economic growth continues to drive development of the nation’s hydrogen energy sector.

Platinum prices will climb to USD1,150 per ounce by the end of 2023 from about USD900 at the close of this year, according to analysts at German lender Commerzbank. Platinum is trading at around USD910 an ounce, a 15 percent increase from two months ago.

“Platinum is used as a catalyst in the production, storage, transportation, and application of hydrogen,” Deng Weibin, Asia-Pacific head of the World Platinum Investment Council, told Yicai Global. “Development of the hydrogen energy industry has directly boosted market demand for platinum and platinum-group metals.”

The price of palladium, a platinum-group rare metal also widely used in the hydrogen industry, will increase to USD2,200 per ounce at the end of 2023 from about USD2,100 at the end of 2022, according to Commerzbank.

China is the largest market for platinum-group metals, accounting for more than 30 percent of global demand, Deng said.

Thanks to the country’s medium and long-term plans to develop the hydrogen energy industry and the growth in the hydrogen fuel cell vehicle market, the use of such metals is expected to go on climbing.

Money is pouring into China’s hydrogen energy industry, with government support. The sector has seen 21 equity investments worth CNY1.6 billion (USD220 million) since the first half, a 50 percent jump in the number and a 137 percent surge in the amount from a year ago, according to data from accountants KPMG.

Editor: Martin Kadiev