Why Does the Automotive Industry Need PGMs? | yokaspace.com

[ccpw id="5"]

HomeMiningWhy Does the Automotive Industry Need PGMs?

Why Does the Automotive Industry Need PGMs?

-

What are PGMs and Why Does the Automotive Industry Need Them?

Platinum group metals (PGMs) are a category of metals that include platinum, palladium, rhodium, ruthenium, osmium, and iridium. 

PGMs are crucial to the automotive industry as they are required for autocatalysts within automotive catalytic converters and exhaust systems. These convert harmful pollutants into less dangerous carbon dioxide and water vapor.

In 2020, 60% of global PGMs were utilized for autocatalysts, demonstrating the significance of PGMs to the auto industry.

In the above graphic sponsor, KGP Auto takes a look at the role PGMs will play in the future of decarbonizing the automotive industry.

EV Forecasts

PGM use in the auto industry has been typically forecasted to reduce as battery electric vehicle (BEV) share increases. This is due to the fact that BEVs do not need PGMs for catalytic converters.

However, the rollout of BEVs faces major challenges such as resource limitations, cost, and infrastructure.

According to projections by KGP Auto, BEVs will only make up 38% of the automotive market by 2040, far short of the 65% needed to achieve net-zero emissions.

To address this, KGP Auto’s recent report proposes a scenario in which material supply is matched to a broader fuel mix.

The Mix

This broader fuel mix will be intended for hybrid vehicles and other vehicles that can support more sustainable fuels like hydrogen.

These include a mix of internal combustion engines (ICEs), plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles (FCEVs).

PGMs used within these types of vehicles will ensure that the automotive industry can reduce emissions as the EV rollout catches up with material demand, cost, and infrastructure.

According to the World Platinum Investment Council, demand for PGMs will continue to grow in the automotive sector into 2040.

PGM Supply

With forecasted demand in the coming years, it’s important to look at global PGM supply.

Mine production of PGMs is currently dominated by a few countries, as is seen in the table below.

Country% of PGMs
🇿🇦 South Africa54.0%
🇷🇺 Russia26.9%
🇿🇼 Zimbabwe7.0%
🇨🇦 Canada6.3%
🇺🇸 United States4.2%
🇨🇳 China0.9%
🇫🇮 Finland0.5%
🇦🇺 Australia0.1%
🇨🇴 Colombia0.1%
🇪🇹 Ethiopia<0.1%
🇷🇸 Serbia<0.1%

Around 80% of PGM production in 2020, was situated in challenging geographical locations like South Africa and Russia. 

The development of new PGM deposits is critical as these metals will continue to play an important role in the transformation of the automotive industry as the world aims to achieve net zero targets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Where are the World’s Largest Solar Power Plants?

Visualizing the World’s Largest Solar Power Plants Devastating wildfires, rising temperatures, and warming seas across the world have added renewed vigor to the global quest for...

Visualized: Global Clean Energy Spending Forecasts (2022-2030)

Global Clean Energy Spending Forecasts (2022-2030) This was originally posted on our Voronoi app. Download the app for free on Apple or Android and discover incredible data-driven charts from a variety of...

The Periodic Table of Commodity Returns (2014-2023)

The Periodic Table of Commodity Returns (2014-2023) It was a challenging year for commodity returns in 2023. But there were a few exceptions. Gold was a standout...

Will Direct Lithium Extraction Disrupt the $90B Lithium Market?

Will Direct Lithium Extraction Disrupt the $90B Lithium Market? Current lithium extraction and refinement methods are outdated, often harmful to the environment, and ultimately inefficient. So...

Most Popular

spot_img