From Reuters, September 9:
- Demand for plug-in hybrids surges as EV take-up slows
- Some plug-in hybrids require more PGMs than petrol cars
- PGM market volatility could pick up if supply curtailed
A surge in sales of hybrid cars as electric vehicle take-up slows is set to provide an unexpected boost to demand for platinum group metals (PGMs) in the coming years, similar to the extended lifespan now predicted for coal.
PGMs - principally platinum and palladium - face a long-term structural decline in demand as their main use has been to clean auto exhausts, a process that is not needed in pure EVs.
A few years ago, the prospects for PGMs, and producers such as Anglo Platinum (AMSJ.J), Impala Platinum (IMPJ.J) and Sibanye Stillwater (SSWJ.J) , appeared grim as EV sales soared, and the drop-off in demand was expected to be steep.
But a tapering in growth of EV sales, and a surge in demand for hybrid cars that need catalytic converters to curb pollution, have given PGMs a new lease of life that could put a floor under prices and keep some mines open for longer....
....MUCH MORE
Both platinum and palladium futures are up over 2 1/2% on the day. Via FinViz:
