# Palladium and Platinum Platinum and palladium are mined together in South Africa and Russia and do the same job in car exhaust catalysts, so carmakers swap between them on price and a shift in either metal's supply or price reaches the other. Source page: https://www.materialinsights.org/links/palladium-and-platinum/ [Palladium](https://www.materialinsights.org/commodities/palladium/) (commodity) and [Platinum](https://www.materialinsights.org/commodities/platinum/) (commodity): 5 relationships. ## How they are linked ### 1. Mined together *Joint production · Strong · The same ores yield both* Platinum-group metals occur together in the Bushveld Complex of South Africa and in Russia's nickel-copper ores, so mines produce both, in ratios fixed by geology rather than by price. - **120,000 kg and 70,000 kg** South African platinum and palladium output, 2025 - **84,000 kg and 20,000 kg** Russian palladium and platinum output, 2025 South Africa is platinum-rich and Russia palladium-rich, so supply shocks differ by country: South African PGM output fell about 9% in 2025 on low palladium prices, deep-level mining costs and power cuts, while Russian output fell about 6%. A mine closed because one metal's price is low also removes supply of the other. Sources: [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-platinum-group.pdf) ### 2. Swap in autocatalysts *Substitution · Strong · Both ways, following the price gap* Both metals catalyse the oxidation of exhaust pollutants, so carmakers can reformulate catalysts to use more of the cheaper metal, within technical limits for each engine type. - **about 25%** of platinum in diesel catalysts routinely replaceable by palladium, up to 50% in some - **540,000 oz** forecast platinum-for-palladium substitution, 2023, up from 360,000 oz in 2022 Palladium replaced platinum in most petrol-engine converters because it had long been cheaper. When palladium became far dearer, as in 2021, the flow reversed, and some catalysts moved from a 2:1 palladium to platinum loading towards 1:1. Switching needs catalyst redesign and approval, so it lags price changes. Sources: [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-platinum-group.pdf); [Mining Weekly (World Platinum Investment Council)](https://www.miningweekly.com/article/autocatalyst-substitution-to-support-platinum-demand-2023-03-17) ### 3. Price gap drives switching *Cost and price · Medium · The cheaper metal gains share* Because they substitute, a wide price gap shifts demand towards the cheaper metal over time, which pulls the prices back together. - **$2,419 and $1,094** palladium and platinum average price per troy ounce, 2021 - **$995 and $961** palladium and platinum, 2024 - **$1,100 and $1,200** palladium and platinum, 2025 estimate Palladium traded at more than twice the platinum price in 2021, then fell to rough parity by 2024 as substitution, recycling and slower petrol car output cut its demand. USGS estimates that platinum averaged above palladium in 2025. Sources: [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-platinum-group.pdf); [Mining Weekly (World Platinum Investment Council)](https://www.miningweekly.com/article/autocatalyst-substitution-to-support-platinum-demand-2023-03-17); [Johnson Matthey](https://matthey.com/media/2025/pgm-market-report-2025) ### 4. Electric cars cut both *Transition · Medium · Battery cars reduce catalyst demand for both* Catalytic converters are the leading use of PGMs, and battery electric cars have none, so electrification reduces demand for both metals; palladium, tied to petrol cars, is the more exposed. - **5%** forecast fall in automotive palladium demand, 2025 Johnson Matthey expected the platinum market to stay in deficit in 2025 while palladium moved into balance, as lower petrol car output cut palladium use. Platinum has other demand in industry, jewellery and investment that cushions it more. Sources: [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-platinum-group.pdf); [Johnson Matthey](https://matthey.com/media/2025/pgm-market-report-2025) ### 5. Shared catalyst recycling *Physical flow · Medium · Scrapped catalysts return both metals* Spent catalytic converters contain both metals, so the same scrap stream supplies secondary platinum and palladium, and its volume depends on how many cars are scrapped. - **about 140,000 kg** palladium and platinum recovered from scrap worldwide, 2025 - **about 50,000 kg** palladium recovered from US car catalysts, 2025 Scrap supplied about 140,000 kg of the two metals in 2025 against mine output of about 360,000 kg, so a rise in vehicle scrapping, such as Johnson Matthey's expected growth in Chinese automotive recycling, adds supply of both at once. Sources: [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-platinum-group.pdf); [Johnson Matthey](https://matthey.com/media/2025/pgm-market-report-2025) ## For investors ### Key learnings 1. The two metals are co-products and substitutes at once, so a price gap tends to close through catalyst switching over a few years. 2. Palladium fell from more than twice the platinum price in 2021 to below it in 2025, on USGS estimates, showing how substitution and electrification move the pair. 3. Supply shocks differ by country: South Africa is platinum-rich and Russia palladium-rich. ### What to track - **Platinum to palladium price ratio**: A wide gap signals future catalyst switching (Daily · LBMA, NYMEX) - **South African PGM mine output**: Falls tighten platinum more than palladium (Monthly · Statistics South Africa) - **Petrol and hybrid car output**: Shifts catalyst demand, especially for palladium (Monthly · OICA, national auto associations) ## For policymakers ### Key learnings 1. Emissions standards decide how much PGM each vehicle needs, so tighter rules raise demand for both metals while electrification lowers it. 2. Catalyst recycling returns both metals together; collection of scrapped cars is a domestic PGM source for importers. 3. Supply is concentrated in South Africa and Russia, so diversification means recycling and other producers such as Zimbabwe and Canada. ### What to track - **PGM imports by source country**: Shows exposure to South Africa and Russia (Monthly · Commerce ministry TradeStat) - **Vehicle scrapping volumes**: More scrapping adds recycled PGM supply (Yearly · road transport ministry) ## India India has no PGM mine output in USGS data, so its petrol and diesel vehicle catalysts rely on imported platinum and palladium, and vehicle scrapping is its main potential domestic source. ## Sources 1. [Mineral Commodity Summaries 2026: Platinum-group metals](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-platinum-group.pdf), USGS (2026) 2. [Autocatalyst substitution to support platinum demand](https://www.miningweekly.com/article/autocatalyst-substitution-to-support-platinum-demand-2023-03-17), Mining Weekly (World Platinum Investment Council) (2023) 3. [Johnson Matthey publishes 2025 PGM Market Report](https://matthey.com/media/2025/pgm-market-report-2025), Johnson Matthey (2025)