Hybrid-car believers should bet on platinum’s renaissance

Hybrid-Car Demand and Platinum's Role

With the adoption of battery electric vehicles (BEVs) losing momentum in the US and Europe, the demand for catalytic converters in hybrid cars is expected to persist. These converters rely heavily on platinum, an essential metal for their operation.

Slowing Electric Vehicle Adoption

The transition to BEVs is not advancing as quickly as anticipated, partly due to supply chain issues and consumer preferences. As a result, internal combustion engines paired with hybrid technology remain a significant part of the automotive landscape.

Catalytic Converters and Platinum

Catalytic converters use platinum-group metals to reduce harmful emissions. Since hybrids still require these converters, the forecast for platinum demand looks positive compared to the declining demand driven by fully electric vehicles, which do not utilize catalytic converters.

“Catalytic converters will remain in demand as hybrids continue to offer a practical alternative to full electric vehicles.”

Market Implications

Investors interested in the automotive sector should consider the potential resurgence of platinum, driven by hybrid vehicle markets. Platinum’s critical role in emissions control gives it an edge over other metals in a landscape where full BEV adoption faces hurdles.

Author’s summary: As the shift to full electric vehicles slows, platinum’s value is likely to grow, fueled by the continued need for catalytic converters in hybrid cars. This creates promising opportunities in the platinum market.

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Financial Times Financial Times — 2025-11-29

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