Automakers switch from palladium to platinum due to risks with Russian supplies

Automakers are ramping up efforts to reduce palladium use and increase platinum amid concerns over palladium supplies from Russia, the World Platinum Investment Council (WPIC) informed on Monday. Russia now accounts for about 25-30% of the world's supply of palladium and about 8-10% of platinum. There is no sign that Russia is going to restrict palladium exports, but as the operation in Ukraine drags on, more companies may boycott the Russian metal and governments may impose restrictions. "Efforts to replace palladium have skyrocketed," said Trevor Raymond, head of research at WPIC. "At the same time, the amount of savings from such transition for the automaker is huge. And it was added the availability for concerns (palladium)," he said.

At around $950 an ounce (28.3 grams), platinum costs about half as much as palladium. Automakers use about 2.5 to 3 million ounces of platinum and about 8.5 million ounces of palladium annually. Recall that palladium is most in demand in the automotive industry, where it is used together with platinum in catalysts. Palladium finds more use in gasoline engines, platinum - in diesel engines.