Palladium belongs to the platinum group, or MGP (platinum group metals). In this same group, you will also find platinum, rhodium, ruthenium, osmium, iridium and rhenium. They all belong to the family of transition metals.
Compared to gold or silver, it is a “recent” precious metal: it was only identified at the beginning of the 19th century. Today, it is mainly intended for the automotive industry, particularly for catalytic converters. But, tomorrow, it will be one of the metals essential to the development of new energies, specifically green hydrogen. It is also a reference metal in jewelry and for investment.
Palladium, a precious metal that is frequently overlooked in favor of more renowned counterparts such as gold and platinum, possesses a captivating history and a diverse array of applications.
So let’s have a look at the distinctive attributes of palladium, ranging from its historical discovery and progression in utilization to its physical and chemical characteristics.
What is Palladium exactly?
Palladium is an uncommon, silver-white metal classified within the platinum group of elements, denoted by the chemical symbol Pd with an atomic number of 46.
Renowned for its exceptional malleability, ductility, and resistance to corrosion, like platinum, it is a corrosion-resistant metal. It can be used in alloy with other platinoids or with copper to reinforce its hardness. Noteworthy is its comparably low melting point relative to other metals within the group, making it a material conducive to work with.
The distinct property of palladium to absorb hydrogen at ambient conditions underscores its pivotal role in catalytic converters, contributing to the limitation of harmful emissions originating from vehicular sources.
Palladium is dense and durable. Like other platinoids, palladium is a very dense metal… even if it is the least dense of the group. It has a density of 12.02 g/cm3, while that of platinum is 21.45 g/cm3. What distinguishes palladium from other metals is also its high resistance to heat. In stoves, the thermometer must display at least 1,554.8°C for it to melt.
History and Uses of Palladium
The inception of palladium traces back to its discovery in the early 19th century. Subsequently, its applications have undergone substantial evolution, encompassing diverse domains including jewelry, investment and key functions within the automotive sector, electronics industry, and a wide array of industrial applications.
Discovery and Evolution of Uses
The element Palladium was discovered by William Hyde Wollaston in 1803. At the beginning of the 19th century, the scientist carried out work on platinoids. His analysis on platinum brought from Colombia allowed him to identify other transition metals: rhodium and palladium in particular. The anecdote you need to know to shine in society is that the name of the metal is directly taken from another discovery. Palladium takes its name from the asteroid Pallas, spotted in 1802.
Initially employed predominantly in the creation of jewelry for its radiant sheen and resistance to tarnishing, palladium’s distinctive characteristics more recently found substantial utility in the automotive sector. It has assumed a critical role in catalytic converters by facilitating the conversion of hazardous pollutants in exhaust emissions into less harmful substances. As technological advancements progressed, palladium’s scarcity and exceptional catalytic attributes prompted its integration into electronics, medical applications and even fuel cells. These uses have cemented palladium’s reputation as a valuable and versatile metal.
Common Palladium Applications Today
Density, corrosion resistance, high melting temperature… These characteristics are obviously of interest to industries. The automobile industry, in particular, has a high demand for palladium: the metal has been used to manufacture catalytic converters for nearly 30 years. In 2022, the automotive industry alone consumed 8,449,000 ounces of palladium. This is three times more than the demand for platinum: 2,897,000 ounces over the same year.
Within the automotive industry, palladium assumes a pivotal function in catalytic converters, facilitating the conversion of detrimental pollutants found in exhaust emissions into less harmful compounds. In the realm of electronics, its exceptional conductivity and resistance to corrosion render palladium suitable for integration into components such as capacitors and ceramic filters. Within the domain of jewelry, palladium is esteemed for its radiant white aesthetic and robustness, frequently employed as a premium metal in the crafting of sophisticated pieces. Notably, palladium’s standing as an investment avenue has steadily ascended owing to its scarcity and its critical role in various industrial processes.
Properties of Palladium
Palladium is renowned for its distinct chemical properties, encompassing both its physical and chemical attributes, notably its resistance to corrosion and possession of a high melting point.
Palladium is used in other sectors: it is used in the manufacture of certain electronic components or in that of dental alloys. You will also find it in jewelry and even numismatics: like platinum, palladium is available in coins. Investors are also turning to physical palladium in the form of bars.
Like platinum, palladium will have a role to play in the development of new energy solutions. The precious metal is indeed very useful for the manufacture of fuel cells. A metal of the future therefore, since it is linked to the development of electric mobility and the production of green hydrogen.
Physical and Chemical Characteristics
Palladium is characterized by its unique physical and chemical properties, which include exceptional corrosion resistance and a high melting point of 1,554 degrees Celsius.
Beyond its notable corrosion resistance and high melting point, palladium is distinguished by its remarkable ductility, facilitating its malleability for diverse industrial purposes. Renowned for its superior heat and electrical conductivity, this precious metal is extensively utilized in the electronics and automotive sectors.
Palladium vs Other Precious Metals
When conducting a comparative analysis of palladium against other precious metals such as gold, silver, and platinum, various factors must be considered, including rarity, industrial utility, and investment viability.
Comparison with Gold, Silver, and Platinum
Palladium shares many similarities with other precious metals such as gold, silver, and platinum, but it also possesses distinct characteristics that set it apart, particularly in terms of its industrial uses and market dynamics.
Gold, silver, platinum, and palladium are all classified within the same group of metals recognized for their scarcity and significant economic worth. While gold has traditionally been esteemed for its visual appeal and symbolic status, silver is valued for its conductivity and various industrial applications. Platinum, conversely, is often linked with high-end jewelry manufacturing and the production of automotive catalysts. Palladium, uniquely positioned within this group, is predominantly utilized in the automotive sector for catalytic converters, and it also finds application in electronics and jewelry due to its exceptional durability and resistance to corrosion.
Investing in Palladium
The process of investing in palladium requires a comprehensive understanding of market trends and multiple factors, which encompass the functions of ETFs (exchange-traded funds), commodity supply and demand dynamics, as well as price volatility.
Market Trends and Considerations
The current market trends for palladium indicate a high demand, influenced by its industrial applications and limited supply, making it a potentially lucrative investment opportunity.
Investors are diligently monitoring the supply chain dynamics of palladium, with various factors such as geopolitical events and mining regulations significantly impacting its availability. The increasing transition towards cleaner technologies, exemplified by the use of catalytic converters in automobiles, continues to propel the demand for palladium.
The price of palladium has demonstrated notable volatility in recent years, primarily attributed to the delicate equilibrium between supply constraints and escalating industrial requirements. A comprehensive understanding of these intricate factors is imperative for making well-informed investment decisions within the palladium market.
Palladium Mining and Production
The extraction and refining of palladium are predominantly carried out in countries such as Russia, South Africa, Canada, and the United States through intricate mining and production procedures.
Extraction and Refining Processes
Palladium has another particularity: it is mixed with other materials, notably platinum. It is also extracted at the same time as gold, copper or zinc. To obtain it, a separation process is necessary. When assembled, palladium crystals form a silvery-white or white-gray metal.
Russia, South Africa, North America and Zimbabwe are the main producers of palladium: unsurprisingly, since the same subsoils also produce the largest quantities of platinum. In 2022, Russia mined 2,600 Koz of palladium, while South Africa produced 2,276 Koz.
Recycling also represents a significant part of annual production. In 2022, 3,099,000 ounces were recovered from old catalytic converters or electronic components, according to figures from Johnson Matthey.
The extraction and refining of palladium encompass a series of processes, starting with ore mining and culminating in the final purification stages required to obtain a high-purity metal.
During the extraction phase, the palladium-containing ore undergoes initial crushing and grinding, resulting in finely powdered particles. Following this, a combination of physical and chemical methods is utilized to segregate palladium from other metals present in the ore. These methods may encompass techniques such as froth flotation, gravity separation, and magnetic separation.
Following the extraction of palladium, it proceeds through a sequence of refining procedures aimed at enhancing its purity. Commonly employed refining techniques include solvent extraction, precipitation, and electrolysis, which serve to eliminate impurities and further refine the palladium metal.
Another point in common with platinum, gold or silver: palladium deposits are expected to become rarer. The exploitation of mines is more and more complex: the veins are more difficult to reach and the stocks contained in the earth’s crust are limited… even if, due to the very nature of palladium, it is very difficult to estimate what remains to be extracted.
On the other hand, demand for precious platinum metals, both platinum and palladium, remains strong. The use of palladium by industries, both the automobile industry and the development of new energy production solutions, impacts the price of palladium.