Assessing Economic Modulation of Future Critical Materials Use: The Case of Automotive-Related Platinum Group Metals.
Platinum-group metals (PGMs) are technological and economic enablers of many industrial processes. This important role, coupled with their limited geographic availability, has led to PGMs being labeled as "critical materials". Studies of future PGM flows have focused on trends within material flows or macroeconomic indicators. We complement the previous work by introducing a novel technoeconomic model of substitution among PGMs within the automotive sector (the largest user of PGMs) reflecting the rational response of firms to changing prices. The results from the model support previous conclusions that PGM use is likely to grow, in some cases strongly, by 2030 (approximately 45% for Pd and 5% for Pt), driven by the increasing sales of automobiles. The model also indicates that PGM-demand growth will be significantly influenced by the future Pt-to-Pd price ratio, with swings of Pt and Pd demand of as much as 25% if the future price ratio shifts higher or lower even if it stays within the historic range. Fortunately, automotive catalysts are one of the more effectively recycled metals. As such, with proper policy support, recycling can serve to meet some of this growing demand.
Materials Systems Laboratory, Massachusetts Institute of Technology , Cambridge, Massachusetts 02139, United States.
Jingshu
J
Zhang
Ford Motor Company Research and Innovation Center , Dearborn, Michigan 48121-2053, United States.
Mark P
MP
Everson
Ford Motor Company Research and Innovation Center , Dearborn, Michigan 48121-2053, United States.
Timothy J
TJ
Wallington
Materials Systems Laboratory, Massachusetts Institute of Technology , Cambridge, Massachusetts 02139, United States.
Frank R
FR
Field
Materials Systems Laboratory, Massachusetts Institute of Technology , Cambridge, Massachusetts 02139, United States.
Richard
R
Roth
Materials Systems Laboratory, Massachusetts Institute of Technology , Cambridge, Massachusetts 02139, United States.
Randolph E
RE
Kirchain
D001336:Automobiles; D002384:Catalysis; D010165:Palladium; D010984:Platinum; D012238:Rhodium
D010984:Platinum; D010165:Palladium; D012238:Rhodium