Essential information for end of life vehicle dismantling, depollution and recycling

green parts secialists

BM Catalysts warns ‘Rising raw material prices here for the long term’

In a recent article by BM Catalysts, they suggest that raw materials, including Rhodium and Palladium (materials used in catalytic converters) increase in value, will be here for the long term.


BM Catalysts warns ‘Rising raw material prices here for the long term’ feat

While 2020 has thrown up an enormous amount of challenges and volatility for UK manufacturing, the rise in the cost of precious metals has been no exception.

Over the past two years, precious metal prices have increased significantly. Rhodium, one of the most expensive precious metals and one of the rarest elements on Earth, began the year at just over £4,000 per t oz and is now trading at well over £12,400 per t oz which is a huge 167% increase. Rhodium currently trades at around nine times the price of gold.

Palladium meanwhile has experienced a less spectacular rise, although has still seen a 20% increase.

What’s causing the price rises?

There are many factors influencing the sharp rise in precious metal prices, in particular rhodium, which has left the price of gold in its wake.

The main use for rhodium is in catalytic converters that are designed to clean vehicle emissions. The trigger for the chemical reaction which starts to break down harmful exhaust gases is the presence of small amounts of platinum group metals (PGMs). These are namely platinum, palladium and rhodium. Rhodium — often together with palladium and/or platinum — accomplishes this by reducing nitrogen oxides in exhaust gas.

The global drive to improve air quality, particularly in areas like China and Europe, has seen demand surge for rhodium and palladium. Furthermore, the move from diesel to petrol trend puts additional pressures on rhodium which is not used in diesel applications.

Another reason its price is sky-high is the tightness of supply. 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.

Catalytic converter thefts rise 50 percent

London Police are reporting a 50 percent increase in the theft of catalytic converters compared to the same time last year as PGM values continue to soar.

Motor insurer, Admiral, says it received 400 claims in one month alone earlier this year for damage caused to vehicles from the theft of catalytic converters. It also says that thieves are focusing on hybrid cars as the catalytic converters found on these vehicles contain a higher concentration of precious metals and are generally less corroded.

What is the long-term outlook?

Through its experience and expertise, BM Catalysts is able to bring a number of process-driven efficiencies to the design, production, assembly and delivery of catalytic converters.

Furthermore, responsible companies such as BM Catalysts have moved to a shorter term purchasing strategy to ensure they remain competitive if the metal prices drop significantly.

In 2008, rhodium touched £5,560 per t oz as the global financial crisis hit, which then saw the metal price crash by 90% just weeks later. This was an artificially high price and is unlike the price rises we see in the market today. The current price of rhodium has never been seen before and with that brings the risk it could crash again like in 2008. With so much uncertainty over the future of the price of this rare metal, 2021 could be another volatile year with either regular price increases or a sudden drop.

Although the automotive sector is the primary consumer of PGMs, demand, and therefore cost influences, also come from buyers such as jewellery makers and commodity investors.

An increased cost of the PGMs used in the making of catalytic converters has to be reflected in their sale price – it’s unavoidable. The price of the PGMs used can be up to 90% 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.

Visit BM Catalysts

This article was first published at


More News


ATF Professional is produced by ARW- Group LTD, which is registered in England and Wales with Company Number 14914439

The views and opinions expressed on ATF Professional are solely those of the original authors and other contributors. These views and opinions do not necessarily represent those of the editor, publisher or staff of ATF Professional.


01432 355099

© All rights reserved

Owain Griffiths

Owain Griffiths

Head of Circular Economy at Volvo Cars

Owain joined Volvo Cars in June 2021 to lead Circular Economy in the Global Sustainability Team. The company has committed to being a circular business by 2040 and has financial, recycled content and CO2 based targets for 2025, all of which Owain is working across the company to make happen. Owain previously worked for circular economy consultancy Oakdene Hollins where he advised businesses on evidence led circular economy implementation. 

Turning into a circular business and the importance of vehicle reuse and recycling.

The presentation will cover the work Volvo Cars is doing to achieve 2025 but mainly focus on the transformational work towards 2040 and the business and value chain changes being considered. Attention will be paid to the way vehicles are being dealt with at the end of life and the complexities of closing material and component loops. Opportunities and challenges which Volvo Cars is facing will be presented including engagement with 3rd parties and increasing pressure from stakeholders.

e2e awards logo

e2e Total Loss Vehicle Management [e2e] is the UK’s only salvage and automotive recycling network with nationwide, environmentally compliant sites delivering performance resilience and service reliability to the insurance and fleet markets.  The network’s online salvage auction drives strong salvage resale values and faster sales.  e2e’s salvage clients have access to the network’s stocks of over 5 million quality graded, warranty assured reclaimed parts. 

The power of the network model means e2e has the ability to influence industry standards and is committed to continually raising the bar whilst redefining the role and perceived value of the salvage operator.  Network members adhere to robust service level agreements, against which they are audited, in order to ensure performance consistency and a market leading customer experience.  

The salvage and recycling operating environment is evolving rapidly, and e2e is anticipating, listening and responding to changing market needs.  Regulatory compliance, ESG, reclaimed parts, customer experience, EVs, new vehicle technologies, data and reputation risk are just some of many considerations linked to the procurement of salvage services.  e2e will drive further added value to clients and members through the adoption and application of emerging technologies, continuing to differentiate its proposition and position salvage services as a professional partnership. 

New Client Special Offer

20% Off

Aenean leo ligulaconsequat vitae, eleifend acer neque sed ipsum. Nam quam nunc, blandit vel, tempus.