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Why Does the Automotive Industry Need PGMs?

by Tessa Di Grandi
This post is by Tessa Di Grandi from Visual Capitalist

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The following content is sponsored by KGP Auto


What are PGMs and Why Does the Automotive Industry Need Them?

Platinum group metals (PGMs) are a category of metals that include platinum, palladium, rhodium, ruthenium, osmium, and iridium. 

PGMs are crucial to the automotive industry as they are required for autocatalysts within automotive catalytic converters and exhaust systems. These convert harmful pollutants into less dangerous carbon dioxide and water vapor.

In 2020, 60% of global PGMs were utilized for autocatalysts, demonstrating the significance of PGMs to the auto industry.

In the above graphic sponsor, KGP Auto takes a look at the role PGMs will play in the future of decarbonizing the automotive industry.

EV Forecasts

PGM use in the auto industry has been typically forecasted to reduce as battery electric vehicle (BEV) share increases. This is due to the fact that BEVs do not need PGMs for catalytic converters.

However, the rollout of BEVs faces major challenges such as resource limitations, cost, and infrastructure.

According to projections by KGP Auto, BEVs will only make up 38% of the automotive market by 2040, far short of the 65% needed to achieve net-zero emissions.

To address this, KGP Auto’s recent report proposes a scenario in which material supply is matched to a broader fuel mix.

The Mix

This broader fuel mix will be intended for hybrid vehicles and other vehicles that can (Read more...)

Fork in the Road: 2 Scenarios For The EV Rollout

by Tessa Di Grandi
This post is by Tessa Di Grandi from Visual Capitalist

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The following content is sponsored by KGP Auto


Fork in the Road: 2 Scenarios For the EV Rollout

Global forecasts for electric vehicle rollouts vary, with countries around the world pledging to speed up the transition to 100% zero-emission cars and vans by 2035-2040.

The shift towards electric vehicles is often hailed as a crucial step in combating climate change. However, the transition to battery electric vehicles (BEVs) has not been as smooth as anticipated.

According to projections by sponsor KGP Auto, BEVs will only make up 38% of the automotive market by 2040, far short of the 65% needed to achieve net-zero emissions. Let’s explore these projections further by breaking down two opposing scenarios up until 2040.

One Goal, Two Ways To Get There

Currently, many factors are limiting the forecasted rollout of BEVs, the most prominent being resource constraints.

With high demand and limited availability of critical transition metals, are there alternatives to reach net-zero targets?

The Balanced Scenario, laid out by KGP Auto, factors in current roadblocks impacting EV targets and presents an alternative road forward.

Dominant ScenarioBalanced Scenario
In this forecasted scenario, to meet 1.5 degrees Celsius warming targets, internal combustion engines (ICEs) will be banned in most markets by 2035, and BEV share will reach 65% of global sales by 2040.Alternatives will help bridge the gap (Read more...)

Fork in the Road: 2 Scenarios For The EV Rollout

by Tessa Di Grandi
This post is by Tessa Di Grandi from Visual Capitalist

Published • Updated •
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The following content is sponsored by KGP Auto


Fork in the Road: 2 Scenarios For the EV Rollout

Global forecasts for electric vehicle rollouts vary, with countries around the world pledging to speed up the transition to 100% zero-emission cars and vans by 2035-2040.

The shift towards electric vehicles is often hailed as a crucial step in combating climate change. However, the transition to battery electric vehicles (BEVs) has not been as smooth as anticipated.

According to projections by sponsor KGP Auto, BEVs will only make up 38% of the automotive market by 2040, far short of the 65% needed to achieve net-zero emissions. Let’s explore these projections further by breaking down two opposing scenarios up until 2040.

One Goal, Two Ways To Get There

Currently, many factors are limiting the forecasted rollout of BEVs, the most prominent being resource constraints.

With high demand and limited availability of critical transition metals, are there alternatives to reach net-zero targets?

The Balanced Scenario, laid out by KGP Auto, factors in current roadblocks impacting EV targets and presents an alternative road forward.

Dominant ScenarioBalanced Scenario
In this forecasted scenario, to meet 1.5 degrees Celsius warming targets, internal combustion engines (ICEs) will be banned in most markets by 2035, and BEV share will reach 65% of global sales by 2040.Alternatives will help bridge the gap (Read more...)

Visualized: The EV Mineral Shortage

by Tessa Di Grandi
This post is by Tessa Di Grandi from Visual Capitalist

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The following content is sponsored by KGP Auto


How Mineral Supply Will Change EV Forecasts

Did you know that EVs need up to six times more minerals than conventional cars?

EVs are mineral-intensive and are pushing up demand for critical battery metals. According to the International Energy Agency (IEA), lithium, nickel, and cobalt demand is expected to grow from 10%-20% to over 80% by 2030.

As countries around the world pledge to go all-electric by 2035 and 2040, do we have enough mineral supply for EV demand?

Factors such as geopolitical concentration of resources, quality of materials, mining industry lead times, and environmental factors will together determine whether we have the minerals we need.

Let’s take a look at how critical minerals are affected.

MineralConstraints
CopperCopper mines currently in operation are nearing their peak, suffering from reserve exhaustion, while ore quality in older mines is declining.

South American and Australian mines are located in areas where water availability can be scarce.
This could cause setbacks given the high water requirements needed for the mining process.
NickelThere are a number of growing concerns related to higher CO2 emissions and waste disposal.

Nickel quality needs to be high (Class 1) for EV batteries. Most nickel in the global supply chain is unusable for EVs.
CobaltThe Democratic Republic of Congo and China (Read more...)

Should You Invest in Disruptive Materials?

by Aran Ali
This post is by Aran Ali from Visual Capitalist

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The following content is sponsored by Global X ETFs
graphic showing the forecasted surge in demand as a result of emerging climate and clean energy technologies.

Should You Invest in Disruptive Materials?

New technologies are having a transformative impact on the transportation and energy sectors. As these technologies develop, it is becoming clear that a small selection of materials, metals, and minerals—known collectively as disruptive materials—are critical components required to innovate.

This graphic from Global X ETFs takes a closer look at the disruptive materials that are key to fueling climate technologies. With a growing global effort to decarbonize, disruptive materials may enter a demand supercycle, characterized as a structural decades-long period of rising demand and rising prices.

Building Blocks Of the Future

There are 10 categories of disruptive materials in particular that are expected to see demand growth as part of their role within emerging technologies.

Disruptive MaterialApplicability
ZincProtects metal surfaces from rusting through a process called galvanization. This is essential to wind energy.
Palladium & PlatinumOften used in catalytic converters, thus playing a major role in hydrogen fuel cell technology.
NickelA corrosion-resistant metal used to make other metals more durable.
ManganeseAn important mineral needed for battery and steel production.
LithiumThe foundational component of lithium-ion batteries.
GrapheneThe thinnest known material which is also 100x stronger than steel. Used in sensors and transistors.
Rare Earth MaterialsA broader category including 15 lanthanide series elements, plus yttrium. These metals are found in (Read more...)