Delegates at the annual International Precious Metals Institute conference in Phoenix have been discussing the effects a surge in fuel cell usage in the next decade could have on the platinum market.

Mike Steel, Market Research Director at Johnson Matthey told Reuters, "There are very few new applications for platinum that are going to take more than a million ounces a year in total demand. No question that fuel cells is one of the few that can be put out that can see a multimillion-ounce demand in the future,"

Dr Steel went on to add that fuel cells could replace automotive catalytic converters as a major source of demand for platinum, second only to jewellery.

The rapid development of the fuel cell market will have to be accompanied by a rise in platinum supply - Mike Steel said that a 50 per cent fuel cell vehicle market penetration would require an expansion rate of 11 tonnes per year.

"It's not just a question of how much (platinum) you have found, but how quickly you can get it out. If it takes decades to get the stuff out of the ground that may not be in time to satisfy demand," he explained.

"If we really were to get to 80 per cent of the mobile transport marketplace, the industry certainly would have a major challenge."