The decision of NATO to increase Defense expenditure is to draw new attention to the strategic role of Platinum Group Metals (PGMS), a series of critical minerals that are essential for space and military technologies.
The World Platinum Investment Council (WPIC), in his Last “60 seconds in platinum” briefingIt noted that persistent growth in defense budgets could translate into a higher demand for PGMs, which are already deeply embedded in critical defense and space systems.
In the The Hague Summit explanation Published 25 June 2025, Alliance Leaders who are committed to increasing defense expenditure to 5 percent of GDP per year in 2035, an important step higher than the long -term directive of 2 percent.
The decision is intended to guarantee “individual and collective obligations, in accordance with Article 3 of the Washington Treaty”, while tackling the fixed geopolitical uncertainty.
“Allies agree that this commitment of 5 percent will include two essential categories of Defense investments. Allies will allocate at least 3.5 percent of GDP each year on the basis of the agreed definition of NATO defense issues by 2035 to the navo -captivity and to comply with the Navo. -declaration.
In addition, “allies will be good annually up to 1.5 percent of GDP to protect our critical infrastructure, to defend our networks, to let go of our civilian readiness and resilience, to release innovation and strengthen our defense industrial basis.”
PGMS, including platinum, palladium, rhodium, iridium and ruthenium, have a wide range of military use thanks to their unique catalytic, conductive and heat -resistant properties.
In the Defense industry they are often found in Avionica and electronics, lasers and optical systems, and night visions.
Aircraft engines rely on platinum and rhodium for temperature detection, while platinum is also used as a protective plating for turbine leaves. Platinum and iridium are absorbed in nasal cones because of their ability to withstand extreme heat.
Military vehicles also draw on platinum for catalytic converters and infrared-suppressing systems, which help reduce thermal visibility against heat-visiting weapons. Platinatalysts are an integral part of advanced fuel reform systems that are designed to provide electricity to the next generation of military units.
Other PGMs serve niche but indispensable roles. Ruthenium is applied in chip resistors, while Palladium is the key in military capacitors. Reed switches, which are magnetic sensors that are used in risky or extreme environments, often depend on Rhodium and Iridium to guarantee sustainability and safety.
Hydrogen fuel cells get traction
One of the most promising growth areas emphasized by WPIC is the intersection of PGMS and hydrogen technologies in the defense.
Proton exchange membrane (PEM) Fuel cells, which depend on platinus catalysts, are tested in land vehicles, naval applications and unmanned air systems.
In South Korea, Hyundai Rotem, a Defense daughter of Hyundai Motor (KRX: 005380, OTC Pink: Hymtf), is development What the world’s first hydrogen cell-driven military tank calls. In the meantime, the skyeton of Ukraine recently reported the Successful test flight of a hydrogen fluff-powered unmanned aircraft (UAV).
Hydrogen stowing can be transforming in the UAV sector in particular, because WPIC noted, because fuel cell systems provide higher energy density and lighter weight compared to traditional batteries, which makes longer flight times and greater operational flexibility possible.
In the United States, the Ministry of Defense studies a “micro -hydro -hydrogen supply chain” for the navy that would generate, store and distribute hydrogen at sea and onshore.
As governments integrate their defense strategies with climate and energy transitions, PGMs seem to play an even greater role. The acceptance of hydrogen fuel cells in military applications can also further deepen this connection.
“Steps to stimulate defense and space spending expenditure can be positive for the demand for metal of the platinum group,” WPIC noted, adding that NATO’s spending promise and industry-innovation emphasize how PGMs are used a lot in defense and space applications.
Beyond PGMS
Although PGMs are indispensable, they are only part of a wider set of critical raw materials that underlie modern defense possibilities.
Rare earth elements (Rees), for example, play a decisive role in the implementation of advanced military platforms. According to data from Benchmark Mineral IntelligenceAn F-35 Lightning II-jet hunter requires approximately 418 kilograms (kg) roe’s, including neodymium and praseodymium in permanent magnets used for flight control and stealth systems.
Naval platforms demand even more: the Arleigh Burke-Class Destroyer uses approximately 2,600 kg of roe’s, while the submarine of Virginia class requires approximately 4,600 kg, to support propulsion, sonar and rocket conducting systems.
The above examples illustrate both the massive material intensity of advanced military assets and the strategic vulnerabilities associated with dependence on external suppliers.
NATO has already marked these risks. In December 2024 it published a list of 12 Defense -critical raw materials Essential for Allied safety, including aluminum, cobalt, graphite, titanium, tungsten, lithium and rare earth elements next to platinum.
For the PGM sector, the expenditure promise of NATO can prove to be a headwind. Nevertheless, the larger whole suggests that other comparable resources will all be part of the same strategic comparison of countries racing to guarantee the basis of a stable supply chain.
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Publication of securities: I, Giann Liguid, has no direct investment interest in a company mentioned in this article.
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