Palladium ~$1,247 an ounce.
Rhodium ~$2,545 an ounce.
Follow up article?
2
Also platinum. And how much palladium is in the typical catalytic converter? (3-7 grams according to Google.)
I wouldn't invest in palladium because demand for catalytic converters will collapse within ten years, as demand for gas- or diesel-powered cars collapses, with the transition to electric cars.
One way manufacturers have been able to reduce the amount of this expensive metal in converters is to move the converter closer to the hot exhaust manifold (called a "close coupled" converter) or to manufacture an exhaust manifold and converter as one piece, called a "maniverter."
This allows the converter's critical oxygen sensors, located immediately fore and aft of the converter, to heat up faster so they can begin regulating the engine's emissions more precisely. This quick "light off" of the sensors reduces the amount of overall emissions when the vehicles are emission certified by the government allowing the manufacturer to reduce the amount of precious metals in the converter.
Twenty years ago it typically took 35 seconds for the converter/sensors to reach operating temperature on a cold start. Today that number is about 8 seconds. Those 27 seconds (roughly) of precision control of emissions on cold start is critical in meeting tighter overall emissions requirements for today's engines.
At $1255 per ounce for palladium, every milli ounce removed represents a big savings over an entire manufacturer's fleet of vehicles.
2
Very informative, timely analysis. Thanks. If the auto industry wasn't in so much turmoil at the moment, thanks mainly to Trump's tariff taxes on Americans, I'd certainly consider investing in palladium.
2
This same metal is removed from cars that are coming from the neighboring country of Togo,in west Africa. I was told several times by friends that the metal is expensive without the knowledge of what it is used for. African countries use fairly used cars from Europe. This action of removing the metal increases the fuel consumption of cars. The outcry has been to check if the metal isn't removed fro, the car you are buying.
Nonetheless,if the world wants to get rid of global warming it has to be vigilant of fairly used cars being sold out to other nations. The absence of the metal increases carbon emission into the sky. So,global warming is inevitable. We have seen how flood,dry weather is devastating regions of the world as a result.
Automobile companies should race against time to find other alternatives to palladium. It is not easy to be doubtful of what is coming next. Other nations may follow suit.
3
Another plus for electric vehicles, and fuel cell/hydrogen vehicles, too. No emissions to control for, so no need for precious metal to blow hot exhaust gases over. No need to go for emissions tests every year. No exhaust system to rust and replace.
7
You still need to mine for lithium to power your batteries. Disposal of these batteries is definitely going to be the next major ecological crises, you heard it here first.
8
As a pedantic former teacher I will point out that as a catalyst, by definition it doesn't "react with" CO, hydrocarbons, etc; rather it helps them react with each other. If it reacted with them, it would be consumed and need periodic replacement.
22
@Observer As a pedantic PhD chemist, I will point out that palladium does in fact react with CO and hydrocarbons, but those reaction products proceed along through additional reactions that eventually yield CO2, water, and returns the palladium back to its original form. Catalysts are not consumed in a full catalytic cycle, but they do engage in reactions en route.
12
3-7g of palladium per cat and 31+- g per troy oz, each cat has a raw value of about 200+- dollars in palladium (plus other precious metals). Many vehicles have 2 cats. Presuming that a thief can get 1/10 the raw metal price (about 10-20 per cat), it would take 20-30 cars to pay for the cutting tool removing the cats (battery powered) or much less (pipe type cutter). A smart thief would straight pipe the missing cat so that the owner might not realize anything is wrong until the check engine light comes on.
An investor-thief could cut new cats off and save them for several years. A new cat OE discount runs 1000-2500 now (depending on the vehicle), much better ROI presuming a resale of 1/2 new. For cars in the high pollution areas, where ignoring the check engine light for a bad cat isn't an option, the market is aided by the law.
Due to the high cat prices, there is quite a market in used cats... the only thing preventing widespread thievery is that on well maintained vehicles the cat lasts as long as the vehicle.
4
@MH
You've put a decent amount of thought into this issue.
Thanks
1
Yet another factor in the inevitable death of the internal combustion engine as the world turns to sustainable EVs.
I also recommend the excellent piece in Wheels: "As More Cars Plug In, Utilities and Makers Juggle Ways to Power Them" by Paul Stenquest wherein he address how industry is finding ways to deal with the challenges of such a huge shift in the way that we get around.
Thank you NYTimes for keeping us informed with your excellent reporting.
1
@Thomas Payne - another good article about the topic you raise.
https://www.utilitydive.com/news/with-us-ev-sales-forecast-to-explode-southern-says-grid-will-be-prepared/544154/
Utilities are looking forward to EVs. Charging at night when other demand is low means they're utilizing their infrastructure more evenly, and can use more wind power which is often more available at night.
And after flat to declining demand for electricity, they see an increase coming their way.
This is good news for people who enjoy clean air. Now if we can get the utilities to clean up all those coal ash dumps....
1
They hear the word valuable and that it. Even though extracting the metal may be complex, that will not stop these crooks from sawing the device from your car.
1
I'm finding that rhodium has a per-gram cost higher than platinum or god.
My catalytic converter on my Honda Element was coated with palladium and platinum. That’s why someone cut it off under my vehicle creating over $1,000 in damage. They stole it to sell the precious metal. The mechanic told me another Honda Element owner came in with the same issue. Apparently the location of the converter on this vehicle makes it an easy target.
4
@Heather
Rats. Though not normally criminal, I was thinking of starting a "business" doing the same thing. My thunder has been stolen by other criminals.
It would be foolish for me to move on their territory, so I think I'll keep my day job.
Palladium also makes fine fountain pen nibs. More classic handwriting and less fossil fuel vehicles would be a good way to reduce demand, in a fantasy world at least.
3
Chemists are working to develop catalytic converters that do not need precious metals.
1
My wedding and engagement rings are palladium. It's a very attractive metal (visually the same as platinum) and the only one I can wear without any type of allergic reaction.
4
This must explain why catalytic converters are such hot commodities on the black market. The catalytic converter was stolen from my daughter’s Prius in LA, where theft of catalytic converters is a very common occurrence.
1
@PHW
People stealing these things "think" they can, somehow, remove what little "precious" metal resides in them, but they can't without wildly complex chemical processes.
The only other reason is to buy or sell them second hand as a cheaper alternative to purchasing new ones.
1
@matty.
I think most steal the converter to resell for use in another vehicle.
1
@pat I agree with both comments, but perhaps the high cost of palladium might explain why new catalytic converters are so expensive, making stolen ones all the more valuable.
2