Platinum automotive demand is growing, according to a new report by the World Platinum Investment Council, with the increase in platinum-for-palladium substitution in gasoline autocatalysts proving a key driver.
The report shows that, despite global vehicle production remaining below pre-pandemic levels, platinum automotive demand increased by 12% in 2022. Furthermore, it is forecast to rise by a further 10% this year, taking levels to 13% higher than in 2019. In contrast, global vehicle production in 2022 was eight percent below 2019 levels and is expected to remain lower in 2023 than in 2019.
Platinum-for-palladium substitution in gasoline autocatalysts is expected to increase by 50% this year, to 540,000oz from 360,000oz in 2022 – itself an 80% increase on the previous year. Tightening emissions standards, leading to higher loadings of platinum per vehicle, are a further driver, as is the growth in market share of hybrid vehicles.
Platinum and palladium both have the necessary physical and chemical properties that make them well suited to autocatalysis. Since palladium was used in the first autocatalysts in the 1970s, changes in emissions standards, innovation in technology and market price differentials have resulted in variations in the mix of platinum group metals (PGMs) used in catalytic converters.
Read the full report here.