Image source: periodictable.com
One of the rarest metals in the word has been seeing a decline in its value, as car manufacturers attempt to replace expensive metals in manufacturing. Rhodium, one of the material preferences for car catalytic converters, is taking a hit in the market as carmakers like Honda lean on their engineers to reduce reliance on the transition metal.
Catalytic converters help reduce the toxic emissions of vehicles. Given its characteristic resistance to oxidation and high temperatures, rhodium has served as the metal of choice for these car parts. In a 2013 report, auto manufacturers like Honda stated its plan to slash rhodium consumption by 50 percent with the development of new catalysts. The new technology, which was first introduced in the brand’s 2013 Accord model, is expected to roll out with their other models in the coming years.
Image source: bloomberg.com
The shift is well-reflected in the current market value of rhodium. Measured in “troy ounces,” the platinum group metal is now being traded at $1000, a tenth of its value, from $10,000 per troy ounce in mid-2008.
If more car manufacturers turn away from rhodium use, the price of the precious metal will continue to depreciate. On average, the automobile industry accounts for 80 percent of the world's rhodium consumption. If Honda's technology is replicated by others, it will only be a matter of time before the demand from the automotive sector plummets further.
Image source: acf.ua
Richard Fifer of Petaquilla Minerals, Ltd. advocates environmental health and sustainable mining practices. Visit this blog to read more about safe and sustainable mining practices.
