The Biggest Platinum Deficit is Coming | This Is Why EV Prices Are Increasing


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We are headed to the biggest platinum deficit in history. Automakers, other industries and investors will push the global platinum market into its biggest deficit in years according to the Refinitv Datastream, a research company.

The report tracks a huge leap in electric vehicle demand and manufacturing. Platinum and its sister, palladium, are used in Electric vehicles, chiefly in vehicle exhausts to neutralize harmful engine emissions.

For years, rising demand and undersupply of palladium pushed prices higher, while lackluster consumption and more plentiful availability kept platinum prices low.

However, there is a sudden surge in the commitment of automakers to produce more EVs. This is motivated by the increase in demand for EVs because of increasing gas prices,

Even with the return of manufacturing to normal schedule, it is predicted that while palladium would remain in deficit this year, platinum’s undersupply would be bigger.

This may be because automakers are now shifting from palladium to platinum to save money. Production of platinum-intensive heavy-duty vehicles is rising, and exhaust-free electric vehicles are making inroads into the palladium-focused light vehicle market.

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