Fossil fuel and electric technologies do not follow one another on a uniform timetable: they coexist and evolve at different speeds. This transition at several speeds gives South Africa a distinctive position. Its platinum group metals are already essential to several industries linked to hydrocarbons and emissions, while also potentially contributing to certain hydrogen and electrification technologies.
In an analysis published on October 22, Ronak Gopaldas, a director at Signal Risk and research fellow at ORF Middle East, argues that this range of applications can become a geoeconomic asset. For Pretoria, the challenge is to turn a longstanding mining advantage into industrial capabilities and lasting partnerships, as major powers seek to secure supplies and control energy value chains.
Metals present in two trajectories
Platinum group metals, particularly platinum, palladium and rhodium, are used in automotive catalytic converters, refining, petrochemicals and certain emissions control applications. These markets remain important while combustion and hybrid vehicles and industrial infrastructure continue to occupy a major place in economies.
At the same time, some of these metals are used in electrolyzers, fuel cells, electronic components and advanced materials. Deployment rates for these technologies remain variable and future demand is not guaranteed. But their existence broadens the markets South African producers can serve.
This dual exposure distinguishes South Africa from a country dependent on a single technology or commodity cycle. It offers the possibility of serving existing activities while preparing new uses. However, the advantage is not automatic: demand will depend on industrial choices, costs, innovation and competition among technologies.
Making diplomacy an economic tool
Energy competition also involves manufacturing, standards, financing and mineral processing. The United States and Europe seek more resilient supply chains; China has a strong presence in several clean industries and mineral processing; Gulf countries mobilize capital in hydrocarbons, renewables and hydrogen; Japan possesses recognized industrial expertise in automotive manufacturing and fuel cells.
South Africa maintains relations with these partners. However, Gopaldas argues that these diplomatic ties will deliver their full economic value only if they open markets, generate competition among investment proposals and enable technology transfers. In his reading, strategic nonalignment has no value as a stance in itself: it becomes useful when it gives the country negotiating room and strengthens its productive economy.
A more precise investment proposition could link mineral access with research, processing, manufacturing and training. Partnerships would then be more than supply agreements, becoming bridges toward local capabilities. Conditions will vary by company and technology; the aim would be to anchor a growing share of value added within the country.
Local processing must build on existing capabilities
South Africa has mining expertise, refining infrastructure, financial institutions, universities, specialist suppliers and an industrial base built around extraction. These assets can support more sophisticated activities: catalyst production, recycling, advanced materials and components associated with hydrogen or fuel cells.
Gopaldas warns against overly broad processing strategies that announce major ambitions without demonstrating commercial viability. The country cannot necessarily occupy every stage of every value chain. A more realistic approach is to target segments where its skills, expected demand and available partners reinforce one another.
This strategy also requires preserving the current platinum economy. Traditional applications, particularly in automotive manufacturing and industry, continue to generate revenue, skills and commercial relationships. These markets can finance companies’ adaptation and their search for new outlets as emerging uses gradually mature.
Energy and logistics determine attractiveness
Competitiveness depends on more than geology. Electricity, railways, ports, water, regulatory predictability and exploration lead times determine the ability to supply markets. International partners assess the reliability of infrastructure and the operating framework before committing to long-term investment.
From this perspective, domestic reforms are integral to economic diplomacy. Strong international relationships can open opportunities; a more reliable operating environment helps turn them into facilities, contracts and jobs. Both measures must advance together.
A regional strategy could also broaden markets and connect South African capabilities with neighboring resources, infrastructure and markets. Regional cooperation would benefit from organizing industrial and logistics complementarities rather than reproducing the same constraints across several countries.
Turning mining advantage into lasting influence
The global energy transition will remain complex: hydrocarbons will retain a role while electrification advances unevenly. According to Gopaldas, South Africa does not need to bet on a single system’s victory. It can instead ensure its metals, companies and skills remain relevant across both trajectories.
This ambition’s reach will be measured by the ability to retain more activities upstream and downstream of mining, attract technology partnerships and guarantee competitive supply. Mineral abundance provides negotiating power; infrastructure, research, local processing and consistent public policy determine whether that power translates into lasting prosperity.