Strategic offtake agreements are becoming indispensable to the global energy transition, with industry leaders at Mining Indaba 2026 warning that securing platinum-group metals (PGMs) and rare components such as iridium will determine the resilience of future supply chains.
Only about 259,000 ounces of iridium are produced annually worldwide, and 80% of that output is already locked into existing contracts, underscoring the urgency of structuring long-term partnerships to guarantee access.
The historical roots of these agreements stretch back to the 1960s, when platinum-based catalytic converters became essential after the U.S. Clean Air Act. Offtake deals financed the expansion of South Africa’s PGM sector, embedding the practice into the industry’s DNA.
Today, PGMs remain vital not only for catalytic converters but also for hydrogen fuel cells, where iridium plays a critical role in proton-exchange membranes.
J.J. Messner de Latour of the Initiative for Responsible Mining Assurance (IRMA) emphasized that ESG principles have long underpinned these partnerships.
“Resilient supply chains are built on transparency and good governance. A business with a social licence to operate will have continuity of supply,” he said. His remarks highlight the growing expectation that automakers and energy firms must secure metals responsibly, not just cheaply.
Henk de Hoop, CEO of SFA (Oxford), pointed to the rapid expansion of Chinese vehicle exports as a new demand driver. “These new vehicles have to be catalyzed.
That makes it crucial for PGM miners to build relationships with the Chinese motor sector,” he noted. Analysts see this as a pivotal shift: China’s automotive surge could reshape global demand patterns, but without diversified partnerships, supply risks may intensify.
David Jollie of Valterra Platinum stressed the importance of diversity in sourcing. “In a less liquid market, you may not actually need a certain metal.
What you really need is access to metal. Offtake agreements give you that comfort,” he said, cautioning against over-reliance on single suppliers.
From the technology side, Lars Reifschläger of Siemens Energy Electrolyzer Manufacturing reaffirmed South Africa’s role as a cornerstone supplier for the renewable hydrogen economy.
“We look forward to long-term partnerships in South Africa. And we see more opportunity than challenge,” he said, signaling confidence in Africa’s ability to anchor global supply chains.
The Mining Indaba discussions revealed both opportunity and vulnerability. On one hand, PGMs position Africa as a strategic supplier for clean mobility and hydrogen technologies.
On the other, limited iridium output and concentrated demand highlight the fragility of supply chains. Analysts argue that the energy transition will hinge not only on technological breakthroughs but on the resilience of these partnerships.
Offtake agreements are evolving from transactional contracts into strategic alliances. Their impact will be measured not just in ounces delivered, but in the stability of global energy systems and the credibility of ESG commitments.
As one delegate concluded, ensuring that the materials powering sustainable technologies come from markets that are themselves sustainable is the ultimate test of the transition.
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