What is Palladium (XPD)?
Palladium is a precious metal of the platinum group, traded under the ticker XPD. It is lighter and less expensive than platinum but possesses unique catalytic properties that make it indispensable in several industries.
Role in the automotive industry
Over 80% of global palladium consumption goes to the automotive industry. Palladium is used in catalytic converters of gasoline engines to clean exhaust gases. Tightening environmental standards increase demand for this metal.
The palladium market
The palladium market is highly concentrated: about 40% of global production comes from Russia, another 35% from South Africa. Any geopolitical or production disruptions can lead to sharp price increases. In 2021, palladium was more expensive than gold.
Palladium outlook
The transition to electric vehicles may reduce palladium demand long-term. However, this process will take decades, and the current supply deficit supports high prices. Track the live palladium rate in EUR on AveChange.