Platinum Falls as Daihatsu Develops Fuel Cell Without the Metal
By Marianne Stigset
Sept. 14 (Bloomberg) -- Platinum fell in London after Daihatsu Motor Co. said it developed a new fuel cell that doesn't use the precious metal, prompting speculation demand may decline from carmakers, the biggest consumers.
Daihatsu, Japan's largest minicar maker, today said it is seeking to replace platinum with cobalt and nickel. A typical fuel cell for a car uses 200 grams, or more than six ounces, of platinum, the company said.
The announcement ``triggered some reactionary selling,'' said Rory McVeigh, a senior platinum trader at Commerzbank AG in Luxembourg. Still, ``I can't see myself driving a fuel-cell car for another 20 years.''
Platinum for immediate delivery fell $7, or 0.5 percent, to $1,289 an ounce as of 11:14 a.m. in London. Carmakers used about 4.2 million ounces of the metal last year in autocatalysts, equal to 62 percent of total demand, according to London-based metals trader Johnson Matthey Plc.
Palladium, also used by carmakers, slid $2.25, or 0.7 percent, to $330.50 an ounce.
To contact the reporter on this story: Marianne Stigset in London at [email protected] .
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