The investment debate around artificial intelligence has largely focused on chips, electricity and data centres. However, the infrastructure supporting AI also depends on small quantities of exceptionally scarce metals. Two of these, ruthenium and iridium, belong to the platinum group metals (PGMs) family and provide South Africa with an important connection to the global technology investment cycle.
South Africa supplies roughly 90% of newly mined ruthenium and around 80–90% of iridium[CE1.1], although estimates vary by year and methodology. Both metals are recovered alongside other PGMs such as platinum and palladium, so higher prices cannot quickly stimulate additional production independently of the broader mining operation.
Ruthenium is used in chemical catalysts, electrical contacts, resistors and hard-disk drives. Its clearest AI connection is data storage. Training and operating AI models requires enormous repositories of information, underpinning investment in the hard drives used by data centres. Ruthenium forms part of the thin-film structures that enable these drives to store information. There is also a semiconductor opportunity: IBM has demonstrated tiny ruthenium interconnects – the wiring linking chip components – which could offer advantages over copper as circuitry shrinks.
Iridium’s role centres on its exceptional resistance to heat and chemical attack. It is used to manufacture crucibles, specialised containers in which high-purity crystals are grown for medical imaging, lasers, electronics and communications. Its AI connection comes through optical communications equipment that moves data.[CE2.1] Additional crystal-growing capacity requires more crucibles, creating demand for iridium. Iridium also serves as a catalyst in proton exchange membrane electrolysers, which split water to produce hydrogen, providing another potential growth market beyond AI.
Prices have risen sharply. At the end of September 2026, Umicore quoted ruthenium at approximately $1750 per ounce and iridium at $8250. Against October 2025 averages of $930 and $4634 respectively, [CE3.1]these represent approximate one-year increases[CE4.1] of 88% for ruthenium and 78% for iridium.
For South African miners, stronger prices can increase revenue from metals already being recovered. If AI infrastructure spending continues to expand, these historically minor contributors could become increasingly meaningful to profitability. For investors, this adds a new dimension to evaluating PGM producers, whose prospects have traditionally been closely associated with automotive demand.