MINING
AUTOCATALYST RECYCLING (from inside of catalytic converters)
Important Precious Metal Information / Supply and Demand Factors of PGMS
- Pgm recycling from autocatalyst is so important because it is a lot easier to process, smelt and refine the autocatalyst from catalytic converters than it is to move tons and tons of rock in the mining process. Simply put, obtaining pgms from autocatalyst recycling is a lot “easier” than mining which is why autocatalyst (catalytic converter) recycling is so important
- Stricter emissions regulations drive the pgm demand in automotive catalyst
- Gasoline engines are more palladium intensive than Diesel engines
- Diesel engines are more platinum intensive than Gasoline engines
- Based on price fluctuations between platinum and palladium, there may be more design swaps to have the vehicle manufactures save money through emission device manufacturing
- Their are more pgms in direct injection turbocharged gasoline engines
- Hybrid electric vehicles have 10-15% higher ppm loading in autocatalyst
- New powertrain & engine features drive higher loadings
- pt -> pd design swap starting 2022 is easy adjustment
- sibanye – stillwater is one of the largest Pgm producers in the world
- much of the recycled weight from catalytic converters has moved to larger and more established catalytic converter collectors creating a backlog of smaller lots and assays
- hybrids may be the future for pgms
- pgm demand from auto catalysts is safe for at least another decade
- pt -> pd swaps are very likely for 2022 model years in USA and EU
- 15-18% palladium supply comes from recycling
- increasing numbers of direct injection gasoline cars will require heavy Pgm containing filters
- HEV (hybrid electric vehicle) 0-15% higher pgm
- BEV (battery electric) no pgm
- 55% increase of EV sales by 2040 , is EV the future? Maybe
- substitution of pgms in gasoline automobiles is likely, but a number of technical and practical challenges to overcome, so unlikely to occur rapidly
- technically possible to replace some or all of the Pd in gasoline catalysts with Pt, but more development work is needed to match the performance of existing Pd / Rh systems.
- pt less stable than pd in gasoline exhaust
- at a global level catalyst complexity is increasing, driven by tightening emissions standards
- performance and compliance in the real world is key
- hybrids likely to be neutral to positive for pgm demand
- pgm industrial use dominated by emission control catalyst
- catalyst – a substance that increases the rate of a chemical reaction or allows it to proceed under different conditions (such as lower temperature) without itself undergoing any permanent changes
- direct injection gasoline TURBO CHARGED more PGM compared to non turbo
- tighter tailpipe emission standards require that all possible catalyst deterioration factors are considered
- given supply-demand fundamentals and price trends Pt substitution exercises are in progress
- we have no other pt saver, but fuel cell for now
- Pd/Rh price increase during last 12 months.
- Backwardation Pd less cash liquidity in the precious metal market partly due to everyone wanting their money up front for cash flow.
- Refining capacity is limited and will continue to be more limited
- Recycling is important and we want to be able to return virtually all of the materials back to the raw material
- palladium based converters are safe located closer to engine, if industry changes to platinum based converters must be further away from engine in a “cooler” section of exhaust
- volumes of recyclable material are rising at the same time as it becomes more difficult to process certain substrates, therefore increasing lead times. Carbon in Diesel catalyst is a major problem at refineries across the world right now.
- supply/demand: rhodium to remain in a substantial deficit for the foreseeable future
“Do what you love and love what you do!”
Kenneth Christensen
KennethChristensen.com 