The selection and use of autocatalyst metals is largely determined by metal availability, durability and price, as well as stricter emission standards. As a result, automakers have used palladium and platinum interchangeably in the past depending on which metal is cheaper and more available in a given time period. Platinum demand in the automotive industry accounts for about 40% of total platinum demand, palladium demand is much higher in the industry, about 80% of total demand, and rhodium is even higher, about 90% of total demand.
Platinum has been seen as the car catalyst of choice since the 1970s. However, in the 1990s, as palladium was mainly seen as a by-product of copper-nickel mining without much value and use, palladium gradually replaced platinum in autocatalysts. Because Russia is a big producer of nickel and copper, this has led to a huge backlog of palladium in Russian warehouses. A few years later, palladium prices have gradually moved higher and market demand has increased significantly, which has increased Russia's influence in the global market. Palladium prices have been volatile over the past few months, rising several times as tensions between Russia and Ukraine intensified. Investors have therefore begun to worry that the conflict between Russia and Ukraine will trigger a global shortage of palladium, which will lead to a further surge in palladium prices. At this point, platinum will re-emerge as the autocatalyst of choice as palladium prices gradually rise beyond the reach of most automakers.