Automakers are switching back to platinum in catalytic converters mainly because its price has dropped below palladium’s, making it cheaper to use, especially in gasoline engines where substitution is easy.
Catalytic converters clean up exhaust from car engines to cut pollution. They need precious metals like platinum, palladium, and rhodium to work. For years, automakers favored palladium in gasoline cars because it was cheaper. But prices flipped. Palladium hit over $3,500 an ounce while platinum fell near $1,000. That pushed makers to use more platinum and less palladium.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
Now platinum trades at a premium to palladium again. This could reverse the shift, but supply issues make it tricky. Tech advances let companies swap metals based on cost. Platinum makes up 40 to 46 percent of its demand from converters, with jewelry at 26 percent, giving it more uses than palladium.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
Stricter emissions rules worldwide keep demand steady for these metals. Even hybrids and remaining gas cars need more platinum-group metals to meet standards. Electric vehicles grow slower than expected due to consumer hesitation and policy changes, like in the US.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it Europe may ease its 2035 ban on new gas cars, allowing hybrids longer. This helps palladium but also boosts platinum use.https://www.economies.com/commodities/palladium-news/palladium-rallies-above-$1700-on-technical-buying-47962
In 2025, auto demand for platinum hit 3.03 million ounces, above recent averages. The switch from palladium in gasoline converters drives this, along with tight supply.https://gerrardsbullion.com/invest/2026-platinum-predictions-will-tight-supply-keep-prices-high/ Platinum demand fell slightly in some regions like North America due to hybrid shifts and fewer heavy-duty diesels, but overall it holds firm.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Platinum also eyes growth in hydrogen tech, like fuel cells, which could offset any auto slowdown. Palladium stays tied more to gas engines.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it Recycling from old converters adds supply, as theft drops and intact units reach scrap yards.https://www.einpresswire.com/article/876465922/25-000-vehicle-study-shows-catalytic-converters-could-return-millions-in-value-to-junk-car-sellers-in-the-us
Sources
https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
https://www.economies.com/commodities/palladium-news/palladium-rallies-above-$1700-on-technical-buying-47962
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://www.einpresswire.com/article/876465922/25-000-vehicle-study-shows-catalytic-converters-could-return-millions-in-value-to-junk-car-sellers-in-the-us
https://gerrardsbullion.com/invest/2026-platinum-predictions-will-tight-supply-keep-prices-high/
https://thormetalsgroup.com/resource/december-12-2025-why-a-structural-deficit-and-hydrogen-economy-could-boost-platinum/