Hybrid vehicles are playing a surprising role in boosting the demand for platinum, a precious metal often associated with luxury jewelry but crucial in automotive technology. Unlike fully electric vehicles that rely on batteries and electric motors, hybrids combine an internal combustion engine with an electric motor. This combination actually requires more platinum group metals (PGMs), including platinum itself, than traditional gasoline-powered cars.
The key reason lies in the catalytic converters used to reduce harmful emissions from car exhausts. These converters contain PGMs like platinum and palladium that help convert toxic gases into less harmful substances before they leave the tailpipe. Hybrid engines tend to run cooler and have more frequent cold starts compared to conventional engines. Because of this, their catalytic converters need higher amounts of PGMs—about 20% more—to effectively manage emissions during these cold cycles.
Moreover, stricter global emission standards such as Euro 7 require even greater efficiency from catalytic converters, pushing manufacturers to use more platinum to meet these tougher regulations. The automotive industry has also adapted by substituting some palladium with platinum when palladium prices spike too high, which further increases demand for platinum.
Toyota’s ambitious plan to produce around 5 million hybrid vehicles globally by 2025 highlights how significant this trend is becoming for the market. As hybrids dominate the transition period toward cleaner transportation—since full electric vehicle adoption is progressing slower than expected—their need for PGMs keeps demand robust despite concerns about electrification reducing metal usage overall.
In summary, hybrid vehicles’ unique engine operation characteristics and tightening emission rules mean they require more platinum in their catalytic systems than traditional cars do. This dynamic supports continued strong demand for platinum even as fully electric cars gain ground worldwide.