Palladium

Palladium is a silvery-white platinum group metal that plays a central role in automotive emissions control. It is the primary catalyst in petrol three-way catalytic converters, where it oxidises hydrocarbons (HC) and carbon monoxide (CO). Modern converters typically contain 2–7 grams of palladium, and as emissions regulations have tightened globally, loadings have increased substantially. The metal's catalytic activity, particularly at lower exhaust temperatures (light-off performance), makes it especially effective for cold-start emissions reduction — a key regulatory focus under Euro 7 and beyond. Palladium is also used in hydrogen purification membranes, electronics, dental alloys, and as a hydrogenation catalyst. Supply is dominated by Russia (Norilsk Nickel) and South Africa, which together account for approximately 80% of global output. This geographic concentration has created significant supply chain volatility, with prices spiking above $2,700/troy oz in 2022. Recycling from end-of-life vehicles is the fastest growing supply source, now accounting for ~35% of total supply. Palladium is increasingly being substituted by platinum in diesel applications, and the shift to electric vehicles poses a long-term structural demand headwind for PGMs overall.