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IPA and EPMF publish joint Position Paper on the EU's strategic reserves initiative

Call for market-compatible approach to strategic PGM reserves in Europe

The International Platinum Group Metals Association (IPA) and the European Precious Metals Federation (EPMF) have published a joint Position Paper on the potential strategic stockpiling of platinum group metals (PGMs) in Europe.

IPA and EPMF welcome the European Commission’s efforts to strengthen the security of critical raw material supply through the Industrial Accelerator Act and RESourceEU. However, the paper cautions that PGMs are highly specialised metals with distinct market structures and should not be treated in the same way as bulk critical raw materials.

PGM markets require a metal-specific approach

PGMs are essential to a wide range of European industries and policy priorities, including automotive emissions control, electronics, healthcare, defence, chemicals, clean hydrogen and advanced manufacturing.

Their supply chains are globally integrated, combining primary production with sophisticated refining and recycling networks. Europe has no significant primary PGM mining capacity but is a global leader in PGM refining and recycling, with recovery rates of up to 95% from collected spent automotive and industrial catalysts.

The paper stresses that platinum, palladium, rhodium, iridium and ruthenium also differ considerably in terms of market size, liquidity, recycling potential, applications and supply risk. Only platinum and palladium have liquid terminal markets. The other PGMs are traded in smaller bilateral markets in which even modest official purchasing could cause disproportionate price increases and physical availability constraints.

Poorly calibrated stockpiling could therefore create artificial scarcity and make PGMs more difficult or expensive to access for the European industries that rely on them.

Resilience measures should come first

IPA and EPMF recommend that the EU exhaust smarter, market-compatible resilience measures before considering physical public stockpiles. These include:

  • Formalising Trusted Partner frameworks with important PGM-producing and processing countries, including South Africa, Zimbabwe, Canada, the United States and the United Kingdom.

  • Completing the European single market for PGM scrap and protecting well-regulated international recycling flows.

  • Providing targeted financing mechanisms to strengthen secondary supply and expand recycling capacity.

  • Enabling certified private storage and bonded warehouse arrangements under clear governance frameworks.

  • Working with specialist market intelligence providers and experienced industry participants to improve the understanding of PGM markets.

These measures could strengthen European supply security while maintaining normal market functioning, established international partnerships and the investment signals needed to support future production.

Safeguards for any strategic reserve

If the EU proceeds with strategic PGM reserves, the paper calls for industry to be involved before any accumulation begins.

PGMs may be stored as ingot or sponge, but they are used in processed catalytic forms, electrolyser chemicals and specialised alloys. Converting stored metal into a form that can be deployed during a supply disruption requires the capabilities of industry refiners and fabricators. Industry cooperation is therefore a functional requirement for an effective reserve.

IPA and EPMF also call for:

  • Metal-specific risk assessments and stockpiling measures.

  • Transparent acquisition volumes, accumulation schedules and release rules.

  • Clearly defined crisis triggers and strict limits on reserve size.

  • Explicit decisions on ownership, financing and responsibility for carrying costs.

  • Protection of the open-loop recycling flows that underpin Europe’s position as a global PGM recycling hub.

  • Regular review of any reserve mechanism in consultation with industry.

The paper presents four complementary pathways for strengthening resilience: strategic international partnerships, narrowly targeted public stockpiles, co-managed private storage and recycling-centred circular buffers.

IPA and EPMF conclude that no single measure can provide comprehensive PGM supply resilience. A proportionate combination of metal-specific safeguards, international cooperation, circularity and continuous industry engagement will be needed to protect European supply without disrupting the specialised global markets on which European industry depends.

Download the full IPA and EPMF Position Paper: Strategic Stockpiling of Platinum Group Metals in Europe in View of EU Commission Proposals