Emissions parts producer BM Catalysts has warned that the recent rise in prices of precious metals used in vehicle parts is likely to continue.

Over the past two years, precious metal prices have increased significantly. BM noted that Rhodium, one of the most expensive precious metals and one of the rarest elements on earth, began 2020 at just over £4,000 per t oz and at the year end was trading at well over £12,400 per t oz, a 167 percent increase. Rhodium currently trades at around nine times the price of gold. Palladium, also used in catalyst substrate material, finished the year with an increase of 20 percent.

Raw material prices will affect cost of finished product, warns producer

BM puts the recent rise in prices down to emerging and mature markets alike: “The global drive to improve air quality, particularly in areas like China and Europe, has seen demand surge for rhodium and palladium” an article on the firm’s website says. “Furthermore, the move from diesel to petrol trend puts additional pressures on rhodium which is not used in diesel applications”.


Another reason given for the high price of Rhodium is the tightness of supply. The article says that more than four out of every five ounces of rhodium are mined in South Africa, extracted in minuscule quantities alongside more abundant metals such as platinum, palladium and gold.

“An increased cost of the platinum group metals used in the making of catalytic converters has to be reflected in their sale price – it’s unavoidable” said the article. “The price of the PGMs used can be up to 90 percent of the overall cost of producing a catalytic converter, underlining the fact that the price of parts is dictated almost entirely by the market performance of these metals”.

Published by GregWhitaker

Editor of CAT Magazine and an experienced motoring journalist

‘Around a third’ former UKPA branches now have GSF signage

Re-branding exercise continues apace, according to posts from the company

Read More

Nissan to target out of warranty vehicles

New servicing plan aimed at three to ten year-old segment two and three vehicles

Read More

Cazoo to acquire Italian used car group

€80m deal takes online retailer into fifth European country

Read More

IAAF: ‘Unclear’ if UK will extend BER rules

Apparent ‘lack of desire’ from UK government to extend rules in line with EU states

Read More

ECP extends Kawasaki British superbike sponsorship

Factor chain to renew deal with youngest rider in the Championship

Read More

Go to comments

Your email address will not be published. Required fields are marked *