Palladium belongs to the platinum group, which also includes platinum, rhodium, ruthenium, osmium, iridium and rhenium. They all belong to the transition metal group.
Compared to gold or silver, it is a “new” precious metal: it was only discovered at the beginning of the 19th century. Today, it is mainly intended for the automotive industry, and more precisely for catalytic converters. Tomorrow, however, it will be one of the metals that are essential to the development of new energies, namely green hydrogen. It is used in jewelry and as a precious metal investment.
Palladium, a precious metal that takes a backseat to more well-known rivals such as gold and platinum, has a diverse history and an extensive number of applications.
Let us have a look at the distinctive characteristics of palladium, ranging from the history of discovery and utilization development to physical and chemical properties.
What is Palladium
Palladium is a silver-white, rare metal of the platinum group of elements with the chemical symbol Pd and atomic number 46.
It is very much appreciated for its excellent malleability, ductility, and resistance to corrosion, like platinum. It is a resistant metal to corrosion. It can be used in alloy with the other platinoids or with copper for the purpose of increasing its hardness. It contains a comparatively low melting point among the other group metals, which makes it a very convenient material to deal with.
The distinct property of palladium to absorb hydrogen at ambient conditions points to its pivotal role in catalytic converters, where it helps to limit hazardous emissions from motor vehicles.
Palladium is dense and robust. Similar to the other platinoids, palladium is an extremely dense metal, though it is the least dense of all. Its density is 12.02 g/cm3, while that of platinum is 21.45 g/cm3. What makes palladium different from other metals is also its resistance to heat. In furnaces, the thermometer must be at least 1,554.8°C before it melts.
Discovery and Evolution of Uses
The history of palladium began with its discovery in the early 19th century. Its applications have since that time developed exponentially to encompass a diverse extent of areas including jewelry, investment and essential applications in the automotive sector, electronics industry, and a general array of industrial applications.
The element Palladium was discovered by William Hyde Wollaston in 1803. During the early 19th century, the scientist carried out studies on platinoids. These studies of platinum imported from Colombia allowed him to uncover additional transition metals: specifically rhodium and palladium. The anecdote you need to know to shine in society is that the name of the metal directly derives from his other discovery. Palladium takes its name from the asteroid Pallas, that he discovered in 1802.
Initially used extensively in jewelry due to its lustrous finish and resistance to tarnish, the special characteristics of palladium more recently have seen extensive use in the automotive sector. It has been instrumental in catalytic converters by facilitating the conversion of harmful pollutants in exhaust emissions into less harmful substances. As technology developed, palladium’s scarcity and outstanding catalytic qualities have seen it being used in electronics, medicine and even fuel cells. All of these uses have set the position of palladium as a valuable and beneficial metal.
Common Palladium Applications
Density, corrosion resistance, high melting point, these characteristics are of great interest to multiple industries. The automotive industry has a large appetite for palladium: the metal has been used to manufacture catalytic converters for nearly 30 years. In 2022, the automotive industry alone used 8,449,000 ounces of palladium. That is three times the demand for platinum: 2,897,000 ounces in the same year.
In the automotive industry, palladium is a key element in catalytic converters, where it facilitates the conversion of harmful pollutants in exhaust emissions into less harmful compounds. In electronics, its conductivity and resistance to corrosion make palladium well-suited for applications in components such as capacitors and ceramic filters. In jewelry, palladium is prized for its vibrant white color and toughness, as a premium metal in the making of fine pieces. Most significantly, palladium’s popularity as an investment product has only increased because of its scarcity and its essential application across a wide range of industrial uses.
Properties of Palladium
Palladium has been hailed for its distinctive chemical properties, both physical and chemical in nature, for example, its resistance to corrosion and high melting point.
Palladium is used in other sectors: it is used in the manufacture of certain electronic components or that of dental alloys. You will also find it in jewelry and even in numismatics: like platinum, palladium is used in some coins. Investors also turn more and more to physical palladium in the form of bars.
Like platinum, palladium will be involved in the development of new energy solutions. This precious metal is indeed very useful for fuel cell production. A future metal therefore, considering that it is associated with the development of electric mobility and also the production of green hydrogen.
Physical and Chemical Properties
Palladium is characterized by its unique physical and chemical properties, such as its high corrosion resistance and 1,554 degrees Celsius high melting point.
In addition to its high melting point and high corrosion resistance, palladium is also renowned for its exceptional ductility, which makes it easier to form into different shapes to be used in various industrial processes. With its high electrical and heat conductivity, the precious metal finds extensive use in the automotive and electronics sectors.
Palladium Compared to Other Precious Metals
While conducting a comparative analysis of palladium with other precious metals such as gold, silver, and platinum, one must consider a number of factors such as rarity, industrial use, along with investment potential.
Comparison with Gold, Silver, and Platinum
Palladium shares much in common with the other precious metals such as gold, silver, and platinum, but it also possesses some characteristics of its own that distinguish it, particularly in its industrial usage and market dynamics.
Gold, silver, platinum, and palladium are all members of the same group of metals that are familiar as being rare and of significant economic importance. While gold has traditionally been cherished for its beauty and symbolic value, silver is esteemed for its conductivity and numerous industrial applications. Platinum, by contrast, is widely used in the production of high-end jewelry and car catalysts. Palladium, with a unique place in this group, finds extensive use due to its high strength and resistance to corrosion.
Investing in Palladium
Investment in palladium takes into consideration the understanding of market trends and several factors that encompass the contribution of ETFs (exchange-traded funds), supply and demand of the commodity, and price volatility.
Market Trends
Market trends for palladium under the present situation are that it has a huge demand, driven by industrial demand and low supply, making it a potentially sound investment choice.
Investors are keeping a watchful eye on palladium’s supply chain dynamics, as various factors such as geopolitical issues and mining regulations are impacting its availability significantly. The rising trend towards cleaner technologies, exemplified by the use of catalytic converters in automobiles, continues to drive demand for palladium.
The price of palladium has experienced significant volatility in recent years, due primarily to the delicate balance between supply constraints and increasing industrial demands. A clear understanding of such factors is necessary in order to make fully informed investment decisions in the palladium market.
Palladium Mining and Production
The extraction and refining of palladium are largely carried out in Russia, South Africa, Canada, and the United States through complicated mining and production processes.
Extraction and Refining Processes
Palladium has yet another property: it is mixed with other elements, particularly platinum. It is also extracted along with gold, copper or zinc. In order to obtain it, a process of separation is required. Gathered, the crystals of palladium form a silvery-white or white-gray metal.
Russia, South Africa, North America and Zimbabwe are the main producers of palladium: no surprise, since the same underground strata also deliver the highest quantities of platinum. In 2022, Russia mined 2,600 Koz of palladium, and South Africa 2,276 Koz.
Recycling represents a significant percentage of annual production. In 2022, 3,099,000 ounces were recovered from spent catalytic converters or electronic equipment, according to Johnson Matthey’s data.
The refining and mining of palladium constitute a series of operations, starting with ore mining and finishing with the final purification steps required to yield a high-purity metal.
In the extraction, the palladium-containing ore is initially crushed and ground to create finely powdered particles. A series of physical and chemical processes is then used to isolate palladium from other metals present in the ore. The processes may involve froth flotation, gravity separation, and magnetic separation.
Following palladium extraction, it undergoes a number of refining procedures to enhance its purity. Refining procedures that are typically employed encompass solvent extraction, precipitation, and electrolysis, which serve to eliminate impurities and further purify the palladium metal.
Another point in common with platinum, gold or silver: palladium deposits will become even rarer. Mines’ extraction is more and more complicated: veins are less accessible and stocks available in the earth’s crust are finite, even if, due to the very nature of palladium, it is very difficult to predict what remains to be exploited.
On the other hand, demand for precious platinum group metals, platinum and palladium, remains strong. Palladium demand from industries, the automotive sector as well as the development of new energy generation technologies, will influence the price of palladium in the future.