Platinum group metal businesses were told they have nothing to fear from the rise of all-electric vehicles at the Auto Catalyst and Fuel Seminar last week.
All-electric cars use little to no platinum group metals, while standard internal-combustion engines need platinum, palladium and rhodium to reduce emissions.
More than 90% of new passenger vehicles are now fitted with catalysts, says manufacturer Johnson Matthey. But, all-electric vehicles are estimated to take 55% of the overall automobile sales by 2040, according to Bloomberg.
Despite the diminished share for internal combustion engines, the shifting landscape will benefit the PGM industry:
Overall Growing Market Share – While internal-combustion engine (ICE) vehicle sales are estimated to drop by half in 20 years from now, ICE vehicles will still have nearly half of the world’s market. Absolute sales numbers will still be healthy as emerging markets buy more cars. Ever-increasing regulation will also increase PGM demand for the next generation of ICE vehicles.