Palladium

Palladium belongs to the platinum group metals and was discovered in 1803 by English chemist William Hyde Wollaston – named after the asteroid Pallas, which had been found shortly before. The silver-white, lustrous metal is softer and lighter than platinum, yet surpasses it in several industrial application fields. The current palladium price can be tracked in real time on this page.

Properties and Chemistry

Palladium possesses an extraordinary property that sets it apart from almost all other metals: at room temperature it can absorb and release up to 900 times its own volume in hydrogen. This hydrogen permeability makes it an important material in hydrogen research and in membrane reactors.

Compared to its sister metals in the platinum group, palladium reacts somewhat more readily with chemicals. It dissolves in hot concentrated sulphuric acid and in aqua regia, but is stable in air and water at normal temperatures. Superficial tarnishing is possible with fine powders, but is practically negligible with compact metal.

Primary Application: Automotive Catalysts

Approximately 80–85% of global palladium demand goes towards use in three-way catalytic converters for petrol-powered vehicles. Together with rhodium, palladium converts the pollutants carbon monoxide (CO), nitrogen oxides (NOₓ) and unburned hydrocarbons into carbon dioxide, nitrogen and water:

2 CO + O₂  →  2 CO₂
2 NOₓ  →  N₂ + x O₂
CₙHₘ + O₂  →  CO₂ + H₂O

Palladium is particularly effective at the low exhaust temperatures immediately after a cold start, which is why it has largely replaced platinum in petrol catalysts. Diesel catalysts, by contrast, preferentially use platinum.

Tightening emissions legislation (Euro 6, China 6, EPA Tier 3) has continuously increased the palladium loading per vehicle in recent years and was a key driver of the price surge that temporarily pushed palladium above the gold price between 2016 and 2022.

Further Industrial Applications

In addition to automotive technology, palladium is used in:

• Electronics: Multi-layer ceramic capacitors (MLCCs) in smartphones, laptops and automotive electronics require palladium-silver inner electrodes.
• Chemical industry: Palladium catalysts (e.g. Pd/C, Pd(PPh₃)₄) are key tools in organic synthesis, for example in Suzuki and Heck reactions.
• Dentistry: Palladium-containing dental alloys were historically widely used, but are losing ground to ceramics.
• Jewellery and white gold: Palladium white gold (from 500‰ Pd) has been displacing the more allergenic nickel white gold since the 2000s.
• Hydrogen technology: Membranes for the purification of hydrogen and research into solid-state hydrogen storage.

Production and Market Structure

Palladium is produced predominantly as a by-product of nickel and platinum mining. Russia (mainly Norilsk Nickel) and South Africa together account for over 75% of world production. This geographic concentration gives the market a structural supply sensitivity to political and operational risks.

Supply is significantly supplemented by recycling – predominantly from end-of-life vehicle catalysts: secondary palladium covers around 25–30% of total demand. Recovery from electronic scrap is gaining increasing importance in the context of urban mining.

Palladium as an Investment Metal

For investors, palladium is available as a physical metal in the form of bars and coins. Well-known palladium coins include the Canadian Maple Leaf (1 oz, .9995 fineness) and the Russian Ballerina palladium rouble. Physical palladium is subject to VAT in most countries.

The palladium price is quoted in US dollars per troy ounce on the NYMEX/COMEX and via OTC markets. Price discovery follows the spot market principle; the LBMA publishes daily reference prices. The long-term price history is shown in the historical palladium prices.

Important: investments in palladium – as with all precious metals – carry price risk. This entry does not constitute investment or tax advice; for tax-related questions (speculative holding period, VAT) please consult a specialist adviser.

Melt Value and Weight Conversion

The current material value of palladium alloys (e.g. jewellery or dental alloys) can be determined using the melt value calculator. For unit conversions between grams, troy ounces, pennyweight and other units of measure, the unit converter is available.

Key Takeaway

Palladium is the most important industrial metal of the platinum group and its demand is largely driven by the automotive sector and emissions legislation – a narrow supply from a few producing countries meets a structurally high demand that is difficult to substitute.