What Is Palladium?
Palladium (Pd) is a rare precious metal in the platinum group (PGMs). It is silvery-white and closely related to platinum, but lighter and less dense. Palladium is best known for its use in catalytic converters — it converts harmful vehicle emissions into less toxic substances.
Where Palladium Comes From
Most global palladium supply comes from Russia (40%) and South Africa (37%), with smaller amounts from Canada, Zimbabwe, and the USA. Supply is limited and production cannot quickly scale to meet demand spikes, which caused its price to surge from $500/oz in 2016 to over $2,800/oz in 2022.
Palladium Uses
- Catalytic converters (70%+) — The primary use. Gasoline engines use palladium; diesel engines prefer platinum.
- Electronics — Multi-layer ceramic capacitors in phones and computers
- Jewelry — "White gold" alloys often include palladium; PT/PD950 jewelry exists
- Dentistry — Dental crowns and bridges (being phased out by ceramics)
- Hydrogen production — Emerging demand in hydrogen economy / fuel cells
Palladium Price History
- 2016: ~$500/oz (undervalued relative to platinum)
- 2018: $1,000/oz — surpassed platinum for first time in years
- 2020: $2,000/oz — shortages from Russia/SA supply issues
- 2022: $2,875/oz — all-time high during Russia-Ukraine crisis
- 2025: ~$980/oz — pressure from EV adoption reducing catalytic converter demand
Selling Palladium Scrap
Because palladium is primarily sourced from catalytic converters and industrial scrap, refiners and specialized buyers pay competitive rates:
- Online PGM refineries: 85–95% of spot (best rates for pure bars/grains)
- Local catalytic converter buyers: Variable — they pay by converter model, not weight
- Industrial scrap dealers: 70–85% of spot depending on purity/form
EV Impact on Palladium
Electric vehicles don't have catalytic converters, reducing future palladium demand. However, hydrogen fuel cell vehicles use platinum-group metals including palladium, which may partially offset the decline from traditional gasoline vehicles.