Palladium
Palladium is a rare and precious platinum group metal whose major use is for catalytic converters in automobiles.
Palladium, like other platinum group metals (PGMs), is scarce. It is approximately 30 times rarer than gold. It is often produced as a by-product of the refining processes of ores of copper, nickel, zinc and other PGMs.
Only a handful of countries extract significant amounts of palladium, including Canada, Russia, South Africa the United States and Zimbabwe, with Russia and South Africa producing at least triple the volumes of any other countries in 2024.
The global palladium market has been significantly impacted by geopolitical tensions and uncertainty, including notably sanctions on Russia since its invasion of Ukraine in 2022.
Palladium is an important input in the production of catalytic converters in internal combustion engine vehicles, and volatility in the palladium market in recent years reflects both geopolitical impacts and changes in the automotive industry in the transition to electric vehicles.
Main uses and applications
Palladium is a silvery metal with similar properties to other PGMs. Of these metals, it is the least dense and has the lowest melting point. It is extremely ductile and highlight resistant to corrosion and tarnishing – properties which are desirable for manufacturing jewellery. Palladium also has a very high affinity with hydrogen, meaning that it can readily absorb large amounts of hydrogen gas onto its surface at ambient conditions. These are properties that may make it a critical material for the increased use of hydrogen-based fuels in transport.
Its potent catalytic properties make palladium automobile catalytic converters highly effective. They can detoxify up to 90% of harmful substances from fuel combustion. Two-thirds of global palladium consumption is linked to the automotive industry, primarily in catalytic converters. With the rise in EV use in recent years, there has been lower demand for these converters, which are an essential component of internal combustion engines. Current projects anticipate flat or dropping demand for catalytic converters in coming years, which may be offset by increased demand for palladium in innovative hydrogen-related uses. Uptake of these technologies in China may prove particularly important in buoying the market, which has otherwise seen sharp price decreases 2023-2025 that have heavily impacted supply resilience.
Beyond the rapidly evolving automotive industry, palladium has a number of other use cases that are relatively stable. When alloyed with silver or gold, palladium can be used to fabricate different kinds of medical equipment, such as dental fillings, prostheses and surgical instruments, and can be used for jewellery. There are also numerous applications in the electronics industry, such as computers, smartphones, TV screens and for ceramic capacitators. It is used extensively in solar energy, the chemical industry, and for groundwater treatment.
Key Countries
Top Producer
Russian Federation
Top Reserves
South Africa
Supply Chain Risk
TDi Sustainability's data rates Palladium's association with the following issues as high or very high:
Strength of Association with ASM