TELF AG analyzes the sustainable potential of palladium
Global conversion
When we hear about the global conversion towards green, in most cases the discussions focus on raw materials such as lithium, copper or cobalt, considered of fundamental usefulness for the advancement of the ecological transition and above all for the manufacture of electric vehicles, considered by many to be true symbols of change. However, few people talk about palladium, another raw material of enormous usefulness for the implementation of green technologies in various sectors of global industry.
The centrality of palladium has grown dramatically especially in recent years, when the full extent of its possible contribution to the green development of the planet began to be understood. One of the most evident characteristics of palladium, in fact, is its extraordinary ability to keep emissions under control, a very precious ability that makes it particularly attractive for the automotive industry, but not only.
Over the last few years, this silvery-white precious metal has continued to surprise analysts and observers with its sustained levels of growth in the global raw materials market, and in particular among all those resources that are considered of primary importance for the decarbonisation. One of its best-known applications is that which has to do with catalytic converters, in the creation of which palladium plays an essential role, to say the least. This is another method developed by the automotive sector to achieve the result widely desired by international institutions and governments, namely the reduction of emissions resulting from vehicle pollution. This result can also be achieved thanks to the important contribution of palladium, and it is precisely for this reason that in recent years there has been a clear increase in global demand for this very useful natural resource.
Catalytic converters manufactured with palladium will not be found on board electric vehicles, but they could represent an essential component of those particular hybrid vehicles which are spreading at great speed, and which are capable of proposing a successful synthesis between electrical power and internal combustion engines. That being said, the question in the minds of analysts and stakeholders of the metal is, will the global demand for palladium continue to increase alongside the parallel growth in the production of hybrid, or electric, vehicles.
In addition to the automotive sector, palladium has also had the opportunity to demonstrate its precious properties in the dental sector, where it is usually used in fillings due to its ability to resist corrosion. This precious metal has also proven to be very useful for the production of some essential components of mobile phones and laptops, such as multilayer ceramic capacitors. In this particular sector, i.e. the one linked to electronics and electronic devices of various kinds, palladium is appreciated above all for its conductive capabilities, capable of strengthening the performance and efficiency of individual devices. Global palladium reserves, for the most part, are found in South Africa, a nation that over the last few years has established itself as one of the main suppliers of critical raw materials to the European Union, together with a real giant of raw materials like China. Among these materials, of course, there is also palladium.
