Norilsk Nickel, which has about 40% of the world's palladium production, will invest the money in a research and development centre by 2030, which is dedicated to developing new products that can be brought to market. This includes projects in the hydrogen, solar and chemical sectors.
Around 80 per cent of palladium is ultimately used in automotive catalysts to curb emissions, but the metal's future is being challenged by the rise of electric vehicles that don't require pollution control equipment. Deteriorating demand prospects, both in the short and long term, have pushed oil prices down about 70 per cent from last year's record levels to near their lowest levels since 2018.
Dmitry Izotov, Nornickel's head of new product development, said in an interview on the sidelines of the COP28 climate summit in Dubai:- "The production of electric vehicles will grow, which suggests that palladium's niche in this area will continue to decline."
Nornickel's new product development centre employs 50 people and is expanding to include a new research lab in Russia, Izotov said. The centre is already working on 20 projects that could create a new market for 40 tonnes (1.3 million ounces) of palladium by 2030, he said. That's equivalent to about 14 per cent of current global production.
Two new potential products - palladium used as a catalyst in hydrogen power systems - are being pilot tested in China, Izotov said. The centre is also working on prototypes of the metal for use in solar cells, with first results expected by the end of next year.
[Source - CKNews.com]
