Are Scrap Catalytic Converters the New War Bond?
Recyclers Aid the US in Creating a Secure Supply Chain
This statement, Are Scrap Catalytic Converters the New War Bond, might sound like an exaggeration, but is it? Both the Trump and Biden Administrations have emphasized by Executive Order the importance of securing the domestic supply chain of critical minerals to national security and the economy.
In May 2018, Jeffery A. Green, then president of a bipartisan government-relations firm in Washington DC and a former US Air Force commander, wrote in Defense News that, “without access to such minerals, our precision-guided missiles will not hit their targets, our aircraft and submarines will sit unfinished in depots, and our war-fighters will be left without the equipment they need to complete their missions.”
Jim Sims Vice President of External Affairs NioCorp Developments Ltd. testified before the U.S. Senate Committee on Energy and Natural Resources that in the 1960s what took 12 elements on the periodic table to create a computer chip now takes 60 elements. We need all of these and more of them.
The 2018 and expanded-2022 list of critical minerals produced by the U.S. Geological Survey (USGS) and the Department of the Interior (DOI) contains 50 mineral commodities, including Platinum Group Metals (PGMs) which come from mining, recycling, or import.
The United States produces less than 10% of the global supply of most critical minerals, relying heavily on imports for many of these essential resources. China dominates the production of rare earth elements, accounting for about 61% of global production and is also a major producer of other critical minerals, including graphite, lithium, and cobalt, contributing significantly to the global supply. Russia is a key producer of PGMs, including palladium (around 40-45% of global production) and platinum (about 10-15%). Russia also produces significant amounts of aluminum, nickel, cobalt, titanium, and other critical minerals.
Platinum group metals (PGMs) play a crucial role in various military applications due to their unique properties. They are used in catalytic converters for military vehicles to reduce harmful emissions and meet environmental regulations. These metals are also essential in the production of high-performance electronics used in communication systems, radar, and other advanced military equipment. Platinum, in particular, is a critical component in fuel cells, which are being explored for military applications due to their efficiency and reliability. Additionally, PGMs are used in various aerospace applications, including jet engines and other high-temperature environments, because of their durability and resistance to extreme conditions.
Mining, from a few key countries, accounts for two-thirds of the world’s global supply of PGMs. For platinum, South Africa leads with approximately 70-75% of global production, followed by Russia with around 10-15%, and Zimbabwe with about 7-8%. In the case of palladium, Russia contributes roughly 40-45% of global production, South Africa provides approximately 35-40%, and Canada accounts for around 10-15%. When it comes to rhodium, South Africa dominates with about 80-85% of the world's production, while Russia and Zimbabwe contribute around 10% and 5-7%, respectively.
Recycling, mainly from spent automotive catalysts or scrap catalytic converters, accounts for one-third of the world’s supply of PGMs. The United States contributes a notable portion to the secondary supply of platinum group metals (PGMs) through recycling. Specifically, the U.S. contributes about 10-15% of the global recycled platinum supply, around 15-20% of the global recycled palladium supply, and approximately 10-15% of the global recycled rhodium supply. Recycling in the U.S. plays a crucial role in supplementing the primary supply of these metals, helping to meet demand.
Recycling of PGMs must increase to ensure a secure U.S. supply of these critical minerals. However, in the past two years post-Covid, and post the price spike in 2020 – 2022, there has been a decrease in the secondary supply from scrap catalytic converters of 50 percent or more. At the recent Winter Meetings of the PGM Refining Committee of the International Precious Metals Institute, Jacob Smith, Senior PGM Analyst for Metals Focus an UK-based independent precious metals consultancy, along with various industry panelists, discussed six possible reasons for the sharp decrease in supply: Hoarding; Exports to foreign nations; Pipeline cleared out at higher PGM prices; Legislation impeding recycling; Wrong data on the amount of available supply; Unattractive prices. Smith summarized the sentiment of discussion as follows:
My main takeaway from the Winter IPMI was uncertainty—both in the autocatalyst scrap market and on a broader macroeconomic level. From our analyst’s perspective, these catalysts should be reaching the market but are not. Despite cars being driven longer and higher interest rates driving weaker car sales, de-registration figures indicate that vehicles are being taken off the road, yet they are not entering the refining pipeline. This is not a new issue. Hoarding amid low prices and exports to developing markets continue to be cited as key factors, yet the lack of improvement after three years is notable. A decade ago, vehicle production was rising in low-single-digit percentages, while PGM loadings increased alongside tighter emissions regulations. Ultimately, this demand drove the market to deficit and caused the exceptional prices seen in 2020–2022. The metal is out there and should be moving through the supply chain, yet it remains absent. On the macroeconomic side,
President Trump has implemented sweeping changes in a short period. Some policies favour PGMs, some are detrimental, and others have indirect effects. At this stage, it remains unclear whether the overall impact is positive or negative for PGMs, though the broader implications for the automotive sector will likely be the key driver.
To the looming issue of where are the converters that should be entering the recycling market, the author and many of the panelists cited that the most common reason given by recyclers to processors, smelters, and refiners is unattractive PGM prices.
The spike in platinum group metals (PGMs) prices from 2020 to 2022 was indeed notable and can be considered an anomaly when compared to historical trends. During this period, prices for palladium and rhodium reached exceptionally high levels due to supply constraints and increased demand. Disruptions in mining operations, particularly in South Africa and Russia, reduced supply, exacerbated by logistical challenges and geopolitical tensions. There was a surge in demand for PGMs, especially for use in automotive catalytic converters to meet stricter emission standards. High prices motivated long-term holders to release metal and consumers to acquire excess metal to mitigate future risks. These price spikes were significantly higher than the historical averages, making the 2020-2022 period an outlier in the context of PGM price trends.
In fact, in the past two years, while supply dipped, PGM prices experienced very little change. In 2023, the average price of platinum was approximately $965 per ounce, and it remains stable at around $965 per ounce in 2025, resulting in a 0.0% change. Palladium saw a significant decrease, with its price dropping from about $1,307 per ounce in 2023 to approximately $970 per ounce in 2025, reflecting a -25.78% change. Rhodium experienced a slight increase, with its price rising from around $4,850 per ounce in 2023 to about $4,925 per ounce in 2025, resulting in a +1.55% change.
Of the three sources of PGMs critical to the U.S, mining, recycling, and importing, recycling is the key. The supply is ample if recyclers do their part to release the material into the market. Supply from recycling could more than double in the next 10 years. The cost of recycling is far less than mining. The carbon footprint is minimal. The level of vulnerability to foreign dependence, specifically on Russia and China, is reduced significantly. In June 2020, Mark Caffarey, President of Umicore USA, testified before the U.S. Senate Committee on Energy and Natural Resources that if the U.S. would fully recycle its automobiles, its appliances, and its electronics that it would become the Saudi Arabia of critical minerals and never look outside of its borders for these minerals. In this way, maybe scrap catalytic converters are the new war bonds for this generation. As secondary producers of PGMs and many other critical minerals, recyclers play a crucial role in creating a resilient U.S. supply chain and must do their part to support the cause.
For daily updates on the PGM markets, subscribe to the United Catalyst Corporation daily e-newsletter, the 60-Second Report, TEXT Daily to 844-713-PGMs (7467). To learn more about recycling converters on assay or the United Ecosystem Bid Tool, you can also call an Account Executive at 864-824-2003 or email a specialist at sales@unitedcatalystcorporation.com.
Becky Berube has served the recycling community for over thirty years. Based in Greenville, South Carolina as President of United Catalyst Corporation, she writes a monthly educational column for the industry and serves on several ARA and ReMa committees. She is a newly appointed Advisor on the US Industry Trade Advisory Committee on Critical Minerals.
She was a recipient of a 2023 South Carolina Women in Business Award and is a mentor in the Women in PGMs program. Additionally, Becky serves as an At-Large Director of the ReMa Southeast Board, Co-Chair of the IPMI Preventing Auto Catalyst Theft Committee, and is on the Board of Directors of the International Precious Metals Institute (IPMI), where she is a past President.
Becky (Temple) Berube
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