While platinum and palladium may not have the same allure as gold or silver, they play a crucial role in the global economy.
These metals possess exceptional resistance to wear and tarnish, making them well-suited for various applications, including jewelry. Their stable electrical properties have made them an essential material for electrical capacitors and semiconductors, which are vital components of our electronic devices.
However, the most significant use of platinum and palladium lies in their role as chemical catalysts.
Platinum and palladium have remarkable abilities to absorb hydrogen like a sponge. This makes them critical components in automobile catalytic converters, which are responsible for converting harmful gases from hydrocarbon emissions, such as carbon monoxide and nitrogen dioxide, into less harmful substances.
Every vehicle that burns hydrocarbon fuel requires a catalytic converter including plug-in hybrid electric vehicles (PHEVs) that use gasoline or diesel.
Despite the growing popularity of electric vehicles, the majority of vehicles sold globally in the coming years will still rely on catalytic converters with palladium or platinum. While battery electric vehicles (BEVs) do not require catalytic converters, their market share is not expected to exceed 10% until at least 2030. This indicates that there will still be a significant demand for these metals in the automotive sector at least in the shorter term.