This century is considered a turning point in the automotive industry's evolution. The automotive industry has witnessed several breakthrough advances, such as the introduction of fuel cell vehicles (FCVs), electric vehicles, and autonomous driving, with the turn of the 21st century.

Various innovative technologies have been brought together to enable this fast-paced evolution to cater to the consumers' needs. For instance, in electric vehicles (EVs), up to 80% of the operational problems caused by software-related issues that prevent drivers from using EV chargers can be resolved by self-healing algorithms in an EV charging management platform. The charging experience for EV owners is optimized through real-time issue discovery and automated self-repair.

Similarly, precious metals have been crucial in the automotive industry for a long time to ensure the durability and environmental performance of parts such as catalytic converters and engine sensors. Precious metals will become increasingly significant as vehicles get more technologically advanced.

Rare, naturally occurring metallic chemical components known as precious metals have a high economic value. Precious metals such as palladium, platinum, gold, rhodium, and silver are less chemically flammable than many other metals. They also have a high luster and are bendable.

Currently, precious metals are being utilized by end users, such as light commercial vehicles, heavy commercial vehicles, passenger cars, and electric vehicles. The main advantages of these metals, which benefits automotive manufacturers, are their high melting points and simplicity in recycling.

Due to these advantages, precious metals are increasingly used in automotive catalytic converters. Therefore, the production of electric vehicles is becoming more of a priority. With technological advancements in using precious metals for automotive applications, the precious metals market is expected to grow significantly.

According to the BIS Research analysis, the global precious metals market for automotive applications is expected to reach $79.82 billion in 2031 from $40.85 billion in 2021. The market is expected to grow at a CAGR of 7.0% during the forecast period 2022-2031.

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Types of Precious Metals Used for Automotive Applications

The use of precious metals has expanded because of various technical developments in automobiles. This blog further details the metal kinds used in automotive applications.

1. Palladium metal: Palladium metal was first discovered in 1803 by William Hyde Wollaston. It is a bright white metal that is a member of the platinum group metals (PGMs). Of all the PGMs, it has the lowest volumetric mass and melting point.

One of the most common PGMs, palladium, exists in the Earth's crust in quantities of 0.015 parts per million and can also be found in alloys with native platinum. It can also be obtained as a by-product of other metals such as platinum and nickel.

Due to its high value and ability to be recycled without losing its essential qualities, it is also recovered from the used automotive catalyst.

Palladium metal is one of the greatest unburnt hydrocarbon converters; therefore, it is frequently used in catalytic converters to clean the exhaust fumes from gasoline and hybrid cars and prevent the release of hazardous chemicals into the environment. Over 70% of the palladium supply in the world is used by catalytic converters.

2. Platinum metal: Platinum is a lovely silver-white metal that is ductile, malleable, and extremely heavy. Usually, iridium is added to the alloy to make it harder. The metal has outstanding catalytic capabilities, a high melting point, exceptional corrosion resistance, and good weldability. Due to its great value, platinum is frequently recycled. Most of the platinum that is recycled comes from used automotive catalysts.

Additionally, substantial amounts of platinum are utilized in closed-loop manufacturing procedures where used platinum equipment is recycled and transformed into new equipment. The main use of platinum is in automobile catalysts, where it is combined with palladium or rhodium.

About 40% of the annual demand for platinum is for its use as an auto-catalyst, which has been going on for more than 40 years. Additionally, other auto parts such as spark plugs and sensors are made using it. However, compared to its use as a catalyst, the use of platinum in manufacturing spark plugs is relatively lower.

3. Gold: One of the finest conductors of heat and electricity, gold is a bright yellow metal with a very high density. Since gold is the most malleable and ductile metal, it is frequently utilized in electronic circuits in the automobile sector.

Applications such as engine and braking system control, in-car networking, and entertainment systems all use a variety of expensive electronic parts, including printed circuit boards (PCBs) and light-emitting diodes (LEDs).

Hybrid and fully electric car adoption is anticipated to increase due to the current trend in the automotive sector. Given that gold is tightly linked to battery technologies like cobalt and lithium, this is expected to significantly affect gold demand in the long run.

As high-end electronics such as collision avoidance systems use a comparably greater amount of gold, the prospect of autonomous vehicles is also expected to support the growth of gold.

4. Silver: Silver has the highest thermal and electrical conductivity compared to any metal and 8% more thermal conductivity than copper. It is frequently used as a collector metal or a carrier for other precious metals in the refining process, which aids in the recovery of other precious metals. Automotive electronics make up most of silver's industrial applications.

Electrical applications use both unalloyed and alloyed silver contacts. Unalloyed silver contacts, and relays, are used for producing electronic goods, which are then used in automobile applications. As an alloy, it improves the brazing alloys' characteristics, which are used to join different metals and ceramics in radiators and electric motors.

5. Rhodium metal: It is one of the hardest precious metals, mechanically, as it has a higher melting point and lower density than platinum. Given that rhodium does not readily react with oxygen, excels as a catalyst, and is resistant to corrosion and oxidation, it is also categorized as a noble metal.

Rhodium is rarely utilized in its pure form and is typically employed in alloys with platinum and palladium for most uses to provide greater strength or corrosion resistance. Rhodium is electrodeposited to create incredibly strong coatings utilized to produce optical instrument mirrors.

Air and water do not affect rhodium up to 600 °C. It produces an oxidation-resistant metal that can endure high temperatures, is ideal for use in furnace windings, and has high-temperature resistance wires, electrodes for aviation spark plugs, bearings, and electrical contacts. It can also be alloyed with platinum and iridium.

Conclusion

Palladium, platinum, rhodium, gold, silver, and other metals are used to make vehicle components. The three most common metals used to create automobile catalytic converters are palladium, platinum, and rhodium.

However, long-term technical advancements will allow manufacturers to employ fewer precious metals to remove particulate emissions since nanotechnology prevents the build-up of micro metal particles in catalysts.

Precious metals play a significant role in eliminating hazardous emissions from car exhausts globally and are essential parts of catalytic converters.