Big boost for platinum demand following technology breakthrough and the impact of COVID-19.
Dr David Davis PhD. MSc. MBL. CEng. CChem. FIMMM. FSAIMM. FRIC. Precious Metals Consultant
In this review, I allude to the implications for the market following the announcement that the auto industry took a step nearer to curbing its dependence on palladium. On 10 March this year, BASF announced it has developed a “tri-metal” auto catalyst converter that enables a partial substitution of lower-priced platinum for higher-priced palladium while still meeting emissions standards has indicated the amount of platinum used in the new catalysts would depend on the vehicle type and sales region.
In my view, the partial substitution of palladium for platinum in petrol vehicle auto catalyst converters is a “game changer” for platinum autocatalyst demand and price. I believe that this substitution will likely be between 20% and 50%, which will likely fully eliminate the palladium deficit and, in doing so, will increase the demand for platinum significantly.