Electrolyser Price: How Iridium and Platinum Impact CAPEX in Hydrogen Projects – by Marc Gschwender 

Key Takeaways 

• Electrolyser price is increasingly influenced by precious metals, especially technologies reliant on iridium and platinum. 
• Rising PGM (Platinum Group Metals) prices affect not only the electrolyser price but also procurement risk, lead times, and project bankability 
• PEM electrolysers are more exposed to precious metal volatility than alkaline systems 
• Europe’s hydrogen market is already under CAPEX pressure, making material uncertainty more impactful. 
• Policy support aids in compensating costs, but cannot solve raw material scarcity. 
• PGM-free alkaline technologies, including ceramic-based approaches from Stargate Hydrogen, are gaining attention as a response to supply risk. 
• The long-term direction of electrolyser price will depend on material innovation as much as manufacturing scale 

About the author 

Marc Gschwender is Vice President of Engineering at Stargate Hydrogen, where he leads the engineering and industrial scale-up of advanced alkaline electrolyser technologies. With expertise spanning hydrogen systems, PEM Fuel Cells, computational fluid dynamics, and high-performance engineering, he has built his career across the automotive, aerospace, and energy sectors.

Previously, Marc held an engineering leadership role at Volvo Group and worked as an engineer at Airbus Defence and Space. At Stargate Hydrogen, Marc focuses on building robust, scalable hydrogen solutions that meet the demands for reliability, efficiency, and resilience of heavy industry and large-scale energy infrastructure.

Electrolyser Price, A Cost Story That Starts with Materials 

Electrolysers are central to the hydrogen economy, and their cost trajectory determines how quickly projects progress from planning to execution. While manufacturing scale, system efficiency, and electricity costs are important, they do not capture the entire picture. 

A less visible but increasingly important factor is the role of precious metals. 

In proton exchange membrane systems, reliance on iridium and platinum introduces a unique cost exposure compared to standard industrial inputs. This extends beyond higher prices to include supply limitations, procurement uncertainty, and challenges in scaling manufacturing reliably. 

In Europe, where hydrogen projects already face financing challenges and policy reliance, rising PGM prices directly affect both the formation and reliability of electrolyser prices over time. 
 

Why PEM Electrolysers Depend on Iridium and Platinum 

PEM electrolysers are valued for their flexibility and high current density, but these benefits require materials that are difficult to substitute. 

Typical PEM designs rely on iridium at the anode for the oxygen evolution reaction and on platinum at the cathode for the hydrogen evolution reaction. Platinum is also used to coat titanium components in some stack architectures. 

A typical design uses about 3 mg/cm² of platinum group metals, with iridium being the most prevalent. 

Few alternatives match iridium’s performance under acidic conditions in PEM cells, making it a key driver of electrolyser prices and scalability. 
 

Iridium vs Platinum: Understanding the Real Bottleneck 

Iridium and platinum both affect electrolyser prices, but in distinct ways. Treating them as equal risks can lead to incorrect conclusions. 

Iridium is the primary constraint, with a global supply of only 7 to 7.5 tons per year, produced as a by-product of platinum mining. As a result, supply cannot easily increase to meet electrolyser demand. 

Platinum remains important, as market deficits and rising prices increase PEM system costs. However, platinum does not impose the same strict limit on deployment as iridium. 

When evaluating electrolyser prices, iridium determines scalability limits, while platinum increases overall cost pressure. 

 
From Metal to Electrolyser Price 

The impact of precious metals on electrolyser prices is often underestimated, as it extends beyond direct material costs.  From a purely technical perspective, based on current iridium prices, in a PEM system, the platinum group metals alone account for 100-160 USD/kW. A significant increase in iridium price might add tens of dollars per kW to the stack. 

While this appears manageable within total system costs, the actual impact is much broader. Scarce and hard-to-source materials affect manufacturing processes and project planning. Lead times increase due to uncertain deliveries; manufacturers must secure inventory earlier, and contracts become more difficult to complete because of price uncertainty. 

These factors contribute to electrolyser prices as a risk premium embedded in the final system cost, rather than as a direct line item. 

For project developers, the focus shifts from "What does the electrolyser cost?" to "Can the price remain reliable throughout the project schedule?" 
 

Price History: A Turning Point Around 2020 

The link between precious metals and electrolyser prices becomes clearer over time. The shift accelerated sharply around 2020, as rising hydrogen demand met constrained supply chains. 

Timeline of Platinum and Iridium approximate price 

2026 Snapshot: Elevated Prices, Persistent Uncertainty 

By 2026, both metals are expected to remain well above historical price levels. 

Platinum has approached $64/g in recent data, showing a continuing supply-demand imbalance. Iridium remains far above its pre-2020 levels at $278.17/g, with no clear path to a large-scale supply expansion. 

Source: https://www.dailymetalprice.com/ 

 
At this point, the main concern is not the initial price increase, but the ongoing tight market conditions. 

• Material costs remain elevated 

• Supply constraints are still present 

• Long-term pricing is difficult to fix 
   

This highlights a broader shift in the hydrogen sector, where the focus is moving from short-term price changes to long-term material availability. 
 

Where Cost Pressure Meets Deployment Reality 

Europe provides a clear view of how electrolyser price interacts with real-world constraints. 

Manufacturing capacity now exceeds 13 GW annually and is expected to grow. However, hydrogen production costs remain high, averaging about €6.71 per kilogram, according to the latest estimates from the European Hydrogen Observatory. 

Public funding remains necessary. Mechanisms like the European Hydrogen Bank support projects and reduce investment risk, as many projects are not yet commercially viable. 

In this context, the price of PGM-dependent electrolysers is a critical factor. Even moderate increases can delay investment decisions, and pricing uncertainty makes financing more challenging for developers. 

As a result, material-driven volatility has a greater impact in Europe than in more mature industrial markets. 

PEM vs Alkaline: How Material Exposure Changes the Equation 

The difference in precious metal dependence between PEM and alkaline technologies is increasingly relevant as electrolyser prices face greater pressure. 

Alkaline electrolysers typically do not rely on iridium and platinum, resulting in a more stable cost structure, especially when PGM prices are high. Considering supply risk and cost predictability, alkaline systems are now more competitive than in previous years. 

The Growing Focus on PGM-Free Technologies 

As pressure on electrolyser prices grows, the focus is shifting to reducing or eliminating dependence on precious metals. 

Efforts include reducing catalyst loading, improving recycling rates, and developing alternative materials. Fully PGM-free systems represent a structural solution rather than a minor improvement. 

A key opportunity in Europe is the move toward PGM-free alkaline designs, as seen in Stargate Hydrogen’s ceramic-based approach called STARDUST, and the ENDURE project’s aim to achieve PEM-like performance without platinum-group metals. 

 Stargate Hydrogen is closer than ever to make the STARDUST technology commercially available to the market, improving hydrogen production economics while maintaining the robustness of the Alkaline technology and its proven reliability.   

The STARDUST Technology is much more than just a ceramic coating; it is an efficiency-enhancing architecture embedded into Stargate systems enabling hydrogen production with high current densities, high efficiency yet zero dependency on PGMs. 

These developments support European priorities to reduce reliance on critical raw materials and address a key driver of electrolyser price volatility. 

While these technologies are not yet universal replacements, they offer a credible path to stabilising costs and improving supply chain resilience. 

Policy Can Support, But Not Replace Materials 

European policy can shape the hydrogen market by providing financial support, improving project economics, and helping to offset high electrolyser prices. 

However, policy has limitations. It cannot increase the physical supply of iridium or platinum, eliminate global market volatility, or guarantee material availability for every project. 

Therefore, while subsidies can make projects more attractive, they do not remove the underlying risks of dependence on precious metals. 
 

What This Means for Hydrogen Projects 

Electrolyser prices now reflect engineering, manufacturing, and also material availability, supply chain stability, and finally the ability to scale production reliably. 

For PEM-based projects, this introduces new considerations. Developers must plan for potential delays, cost fluctuations, and procurement challenges, all of which can impact project schedules and financing. 

Meanwhile, alternative technologies present a different risk profile. PGM-free alkaline technologies, with lower exposure to critical materials, offer more predictable costs and reduced supply chain risks. 

Choosing between these options is both a technical and strategic decision, influenced by how much uncertainty a project can accommodate. 
 

Looking Ahead to 2035 

The future trajectory of electrolyser prices will depend in part on how the industry addresses material constraints. 

Several developments will influence this path: 

• Reductions in iridium and platinum loadings. 

• Progress in recycling and recovery 

• Commercialisation of PGM-free technologies 

• Changes in global supply patterns 
   

If material intensity declines quickly, pressure on electrolyser prices may ease. Otherwise, supply constraints will continue to affect deployment speed, especially for PEM systems. 

Materials will remain a key factor in determining which technologies can scale most effectively. 
 

Final Thoughts: Electrolyser Price Is Also About Certainty 

Electrolyser price is often stated as a cost per kilowatt, but this figure only captures part of the picture. 

Precious metals introduce uncertainty into manufacturing and procurement, affecting delivery timelines, price stability, and project financing. 

Reducing reliance on scarce materials is not only about lowering electrolyser prices, but also about making those prices more predictable. 

If you are assessing how electrolyser prices may impact your projects or considering ways to reduce dependence on critical materials, now is the time to review your technology options. 

Contact the Stargate Hydrogen team to learn how PGM-free and ceramic-based electrolysers can help achieve your project goals while reducing costs and supply chain risks.