Iridium (Ir, Atomic Number 77) is a rare and valuable metal belonging to the Platinum Group Metals (PGMs). It is the second densest metal and the most corrosion-resistant metal in the world. Its unique physical and chemical profile means no other material can reliably substitute for it in demanding applications. These properties translate directly into a high market value, driven by niche industrial demand that far outstrips its limited supply.
The Unique Properties and Rarity of Iridium
The cost of iridium is rooted in its physical constraints and geological scarcity. Iridium has an extremely high melting point of approximately 2,466°C (4,471°F). This makes it difficult and energy-intensive to melt, cast, and process, which adds significantly to the final price of the refined metal.
Iridium is one of the rarest elements in the Earth’s crust, found in concentrations of about 0.001 parts per million. The metal is almost exclusively recovered as a minor byproduct of mining for other metals, primarily platinum, palladium, and nickel. Therefore, the supply of iridium cannot be increased independently, as its production volume depends entirely on the mining rates of these larger-volume base metals.
The main source of global iridium production is the Bushveld Complex in South Africa, accounting for over 80% of the world’s supply. The annual global output of refined iridium is typically only 7 to 9 tonnes. This small, geographically concentrated supply creates a structural imbalance, making the market highly sensitive to disruption or sudden surges in demand.
Current Market Price and Historical Price Volatility
Iridium’s value reflects its scarcity and industrial necessity. The base price for industrially traded iridium typically ranges higher than gold. For instance, in early January 2026, the industrial price for iridium was approximately $4,700 per troy ounce, compared to platinum at around $2,156 per ounce and gold at about $4,315 per ounce.
The market for iridium is characterized by extreme price volatility, largely due to the inelasticity of its supply. The price surged nearly three-and-a-half-fold between late 2020 and early 2021. During this period, the price soared from around $1,750 per ounce in December 2020 to reach an all-time high of $6,600 per ounce by March 2021.
This rapid increase was triggered by supply constraints from major South African producers due to pandemic-related shutdowns and a rise in demand from the electrical and electrochemical sectors. Price spikes demonstrate that even minor supply shocks can affect the price of the metal. Since that peak, the price has corrected but remains elevated, illustrating the underlying pressure from sustained industrial demand.
Key Industrial Applications Driving Demand
Industries are willing to pay the high price for iridium because its properties are necessary for high-performance, specialized equipment. Its resistance to corrosion and high-temperature stability make it indispensable. A primary application is the manufacture of high-temperature crucibles used to grow synthetic single crystals, such as yttrium aluminum garnet (YAG) or sapphire substrates. The iridium crucible is necessary to contain the molten materials without contamination at temperatures exceeding 2,000°C.
Iridium is used in the global transition to clean energy, particularly within the hydrogen economy. It serves as a catalyst coating in Proton Exchange Membrane (PEM) electrolyzers, which split water into oxygen and high-purity hydrogen. Iridium’s stability under the strong acidic and oxidizing conditions within the electrolyzer stack makes it virtually irreplaceable for this rapidly increasing process.
The metal is used in specialized spark plugs for high-performance combustion engines, where its hardness and high melting point ensure a longer lifespan and reliable performance. Iridium-based organometallic compounds are utilized as phosphorescent emitters in Organic Light-Emitting Diode (OLED) screens for smartphones and displays. These niche, high-value applications guarantee a constant and expanding demand.
Market Dynamics Influencing Price Fluctuation
The mechanics of the iridium market amplify price fluctuations far more than in markets for common metals. The market suffers from low liquidity, meaning there are few buyers and sellers, and it is not traded on major public exchanges. This lack of transparency and volume means that a single large purchase order from an industrial consumer can rapidly deplete the available inventory and cause the price to spike.
The reliance on South Africa for the vast majority of the world’s supply introduces geopolitical and operational risks. Issues such as labor disputes, electrical power shortages, or regulatory changes in the region can immediately restrict the flow of the metal to the global market, leading to price inflation. The small annual production volume is easily overwhelmed by even modest increases in industrial demand.
The rate of recycling for iridium is significantly lower compared to other Platinum Group Metals, with only about 25% of used iridium recovered. The difficulty and lack of economic viability in separating minute amounts of iridium from complex electronic components or spent catalysts limit the secondary supply. This low recycling rate keeps the market heavily dependent on primary mine production, increasing the metal’s price sensitivity.