Japan Pushes Fuel-Cell Autos and 'Platinum Valley' for South Africa

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Japan is targeting domination of the world's fuel-cell powered electrical vehicle market. Johnson Matthey (OTC:JMPLY) (JM) (London, England) reports that a new task force has been set up consisting of members of the automotive and hydrogen-refueling industries, as well as representative of Japanese government agencies.

The task force is led by former environment minister Yuriko Koike and includes representatives from Toyota (NYSE:TM) (Toyota City, Japan), Honda (NYSE:HMC) (Tokyo), Nissan (OTC:NSANY) (Yokohama), Nippon Oil and Energy (TYO:5001) (Tokyo) and Kawasaki (OTC:KWHIY) (Kobe).

The team will consider purchase subsidies and tax breaks to support the commercial roll-out of fuel-cell cars, both in the domestic and international markets.

Honda's management has said that the company is planning to launch a reasonably priced fuel cell-powered car by 2020, and Toyota is planning to show a hydrogen-fed fuel cell car at the Tokyo motor show in November this year. This model could start commercial sales in 2015.

In a broad initiative, Japan's national policy unit has noted that the need for platinum group metals would increase as fuel cells that use platinum as a catalyst are installed in cars and homes. The target is to have 1.4 million fuel cells in domestic residences by 2020, up from the current 10,000, and reach 5.3 million by 2030. The government also will assist with the construction of facilities for fuel cell vehicles to enable them to be marketed by 2015.

It was reported in JM's "Fuel Cell Today Industry Review 2012" that 2011 was the most successful year for the technology, with shipments of more than 100 megawatts (MW) on a commercial basis. At the end of 2011, there are 215 hydrogen-refueling stations worldwide, with 85 in Europe, 80 in North America, 47 in the Asia-Pacific region and three elsewhere.

The Japanese push for the commercial adoption of fuel cell technology could be very good news for South Africa's platinum industry, which is in disarray after seeing production fall by 620,000 ounces on the back of a rash of strikes and uncertain auto industry demand. South Africa holds about 80% of the world's platinum reserves.

A spokesman for the Japanese embassy in Pretoria has said that they want to encourage South Africa to establish a "Platinum Valley," along the lines of Silicon Valley in California. This would include research on new uses for the metal and would chime with the government's priorities of job creation and the value-adding beneficiation of raw material.

A senior Japanese expert in fuel cell technology is due to visit South Africa soon to further the Platinum Valley concept with government and industry.

For related information, see April 4, 2013, article - Russia, South Africa Plan 'OPEC' for Platinum Exports, and November 26, 2012, article - Weak Auto Sales Soften Global Platinum Demand, Standard Bank Says.

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