Platinum recycling is limited mainly because much of the metal is tied up in long-lived products (especially vehicle catalytic converters and jewelry) that only reach recycling streams after many years, collection and processing infrastructure is thin or fragmented, economic incentives and regulations sometimes discourage small collectors, and technical and logistical barriers make recovery costly and slow[3][1][3][5].
Why recycling flows are slow and small
– Long product lifetimes delay scrap availability: A catalytic converter installed today typically will not be recycled for a decade or more, so current scrap flows reflect vehicle sales from many years earlier[1].
– Aging vehicle parc and substrate declines reduce future scrap volumes: Changes in vehicle design and longer ownership mean fewer end-of-life catalysts enter the waste stream each year, producing a lagging and sometimes shrinking feedstock for recyclers[1].
– Collection network damage and consolidation: During periods of low prices, many small collectors and processors exited the market; rebuilding those networks and dealer relationships takes years, so physical collection capacity remains constrained[1][3].
– Regulatory and theft-control measures add costs: Crackdowns on catalytic-converter theft and tougher compliance rules have raised costs and administrative burdens for small-scale collectors, squeezing margins and discouraging some actors from participating in the recovery chain[1][3].
– Confusion around trade and tariff codes: Uncertainty and changes in customs classifications and duties for spent catalysts have chilled cross-border movements and processing in some quarters, reducing recycling activity[3].
– Price-response is muted and slow: Although higher platinum prices should theoretically raise recycling, in practice recycling systems respond with long lags and other structural frictions mean price spikes do not instantly translate into large additional secondary supply[1][3].
Technical and economic barriers in processing
– Low concentrations and complex substrates: Platinum in many end-uses is present at low concentration or bound up in complex ceramic substrates (for autocatalysts), making separation and smelting technically demanding and costly compared with simpler metal scrap streams[3][5].
– Capital and credit constraints for refiners: Sharp price swings can force recyclers to extend credit or raise lease rates; smaller processors may lack the working capital or credit lines to scale recovery when prices rise, limiting throughput[3].
– Economies of scale favor larger operators: High fixed costs for specialist refining and assay equipment mean only larger recyclers can operate profitably at scale, which reduces the number of active processors and slows the system’s ability to ramp up[3][5].
Demand and supply trends that affect recycling economics
– Shifts in end-use demand change recycling dynamics: Growing industrial demand (for example from hydrogen technologies and fuel cells) increases competition for newly mined and recycled metal, but it does not immediately increase scrap availability because demand growth comes on faster than old products reach end of life[2][4][5].
– Regional production constraints and market tightness: Mine production disruptions, geopolitical factors and concentrated production (notably South Africa and Russia) tighten primary supply, but secondary supply cannot be a quick offset because of the structural lags described above[2][7].
Practical consequences and risks
– Secondary supply can fall even as prices rise: Because of the structural features above, total recycling volumes have in recent years been lower than historical averages despite higher platinum prices, creating a risk of persistent deficits[1][3].
– Recovery improvements are possible but gradual: Industry reports project modest year-on-year recovery in recycling as collection rebuilds and higher prices incentivize processing, but these gains are incremental relative to the size of primary demand[3][7].
Sources
https://shanakaanslemperera.substack.com/p/the-platinum-singularity-how-the
https://www.phoenixrefining.com/blog/russia-s-largest-palladium-producer-sees-platinum-deficit-this-year
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://www.cruxinvestor.com/posts/chinas-strategic-critical-mineral-classification-of-platinum-its-investment-implications-for-global-pgm-supply-pricing-and-emerging-developers
https://www.imarcgroup.com/news/platinum-price-index
https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html