Platinum replaced palladium mainly because palladium prices soared due to years of supply shortages while platinum became cheaper, prompting car makers to switch back in catalytic converters. This shift started gaining steam after 2021 when palladium hit over $3,000 per ounce from a low of around $190 in 2009, driven by huge demand from auto manufacturers who use about 85% of it to cut car emissions.https://www.usmoneyreserve.com/news/executive-insights/how-palladium-became-the-fastest-growing-precious-metal-in-recent-history/https://en.wikipedia.org/wiki/Palladium
For over a decade until recently, the world used more palladium than it mined every single year, creating a deficit of more than ten million ounces that drained old stockpiles built up during Soviet times in Russia.https://shanakaanslemperera.substack.com/p/the-palladium-paradox-thirteen-years Russia, the top producer through Norilsk Nickel, sold off its secret reserves by around 2014, leaving no big buffer as demand kept climbing from stricter emission rules and more cars on the road.https://shanakaanslemperera.substack.com/p/the-palladium-paradox-thirteen-years
Platinum works well in these converters too, especially for diesel engines, and it had been swapped out earlier when palladium was cheaper back in the 1990s and 2000s.https://en.wikipedia.org/wiki/Platinum But as palladium prices flipped to 50% higher than platinum by 2019, and stayed high into 2021, manufacturers began substituting platinum again to save costs.https://en.wikipedia.org/wiki/Palladium
Today, with palladium prices falling below platinum, experts expect this reverse switch to pick up more, helping balance the market by 2026.https://shanakaanslemperera.substack.com/p/the-palladium-paradox-thirteen-yearshttps://investingnews.com/wpic-platinum-market-forecast/ Lower palladium output from mines focusing on profits, plus extra platinum from stockpiles, has kept things steady so far.https://investingnews.com/wpic-platinum-market-forecast/
Both metals come from similar mines in places like South Africa’s Bushveld Complex, but palladium’s supply crunch hit harder because it is rarer overall.https://en.wikipedia.org/wiki/Platinumhttps://www.goldavenue.com/en/blog/newsletter-precious-metals-spotlight/should-you-consider-investing-in-platinum-and-palladium Changes like the London Metal Exchange dropping its platinum and palladium auctions by mid-2026 show how the market is adapting to these shifts in trading and pricing.https://discoveryalert.com.au/regulatory-changes-metal-market-infrastructure-2025/
Sources
https://shanakaanslemperera.substack.com/p/the-palladium-paradox-thirteen-years
https://en.wikipedia.org/wiki/Platinum
https://www.usmoneyreserve.com/news/executive-insights/how-palladium-became-the-fastest-growing-precious-metal-in-recent-history/
https://en.wikipedia.org/wiki/Palladium
https://discoveryalert.com.au/regulatory-changes-metal-market-infrastructure-2025/
https://investingnews.com/wpic-platinum-market-forecast/
https://www.goldavenue.com/en/blog/newsletter-precious-metals-spotlight/should-you-consider-investing-in-platinum-and-palladium
https://www.interactivebrokers.co