Fitch Russian Mining Forecast2 Mar 2022 11:27
2 March. 22 - source Ortex
Russia Palladium Mining Forecast
In the long term, Russian palladium production is likely to face considerable challenges from the accelerating uptake of electric vehicles and declining investment from dominant producer, Norilsk Nickel.
THIS COMMENTARY IS PUBLISHED BY FITCH SOLUTIONS COUNTRY RISK & INDUSTRY RESEARCH and is NOT a comment on Fitch Ratings' Credit Ratings. Any comments or data are solely derived from Fitch Solutions Country Risk & Industry Research and independent sources. Fitch Ratings analysts do not share data or information with Fitch Solutions Country Risk & Industry Research.
Russia Palladium Mining Forecast
28 Feb 2022
Russia
Mining
Key View: In the long term, Russian palladium production is likely to face considerable challenges from the accelerating uptake of electric vehicles and declining investment from dominant producer, Norilsk Nickel.
Latest Developments
In light of Russia's invasion of Ukraine, we highlight palladium as a key metal that Russia could limit supplies of in retaliation to sanctions placed on the country's financial system by the West. Russia is the world's largest supplier of palladium, producing about 40% of global output (44% in 2020, 36% in 2021), and we expect the precious metal to receive a significant boost should sanctions on Russia create pressure on seaborne supply. The palladium market has already been in a consistent deficit over the last decade, and being a by-product of nickel or copper mining, there is limited scope for fast increases in additional global supply.
Palladium's key commercial use is as a critical component in the catalytic converter, which is a part of a car's exhaust system that controls emissions, converting toxic gases, such as carbon monoxide, and nitrogen dioxide, into less harmful nitrogen, carbon dioxide and water vapour. Going forward, palladium has the potential to play a major role in virtually every aspect of the envisioned hydrogen economy, including hydrogen purification, storage, detection and fuel cells due to its hydrogen-absorbing properties.
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