Material flows of car related PGM Dr. Christian Hagelüken, Umicore Precious Metals Refining 2nd Roundtable on the Sustainable Production & use of Platinum Group Metals Brussels, Dec. 12, 2007
The global annual mine production for PGMs fits into a 15 m² room (31m³) density: 10.5 t/m³ Pt+Pd+Rh+Ru+Ir (15.1) PGM 500 t/a Ag 20000 t/a Au 19.3 2500 t/a 3.2 m - 12.3 m - - 5.1 m - PGM = Platinum Group Metals density: 12.0 t/m³ 21.5 Mine production PGM: > 85% South Africa & Russia ore grade < 10 g/t value: 14 billion $ (at 2006-prices) 9 billion $ (at 2005-prices) Pd 230 t/a (17.9 m³) Pt 210 t/a (9,5 m³) 12.4 Rh 25 t/a 12.5 Ru 40 t/a 22.7 Ir 4 t/a - 2,6 m - - 2,2 m - - 1,25 m - -1,50 m - 0,55 m 85% of all PGMs ever mined were extracted after 1980! $/g Pd Pt Rh Ru Ir M $ Pd Pt Rh Ru Ir total M $ 2006 10,29 36,75 146,13 6,16 11,22 2006 2366 7717 3653 185 45 13966 2005 6,46 28,84 66,01 2,38 5,43 2005 1486 6056 1650 71 22 9286 2004 7,39 27,20 31,51 2,06 5,98 2004 1701 5712 788 62 24 8286 2003 6,43 22,22 17,04 1,13 2,99 2003 1479 4665 426 34 12 6616 2
PGM demand 2007 worldwide autocatalyst > 50% of net demand Platinum t/a % Palladium t/a % Rhodium t/a % autocatalyst 104 48 autocatalyst 107 52 autocatalyst 21 84 jewellery 50 23 jewellery 23 11 chemical 2 7 chemical+petroleum 20 9 electronics 34 17 others 2 9 investment 2 1 dental 19 9 total demand* 25 others 40 18 others 22 11 total demand* 215 total demand* 205 * net demand total demand* Pt+Pt+Rh: 446 total PGM for autocat (net) = 232 52% = gross demand - recycling Pt autocat others Pd Rh others Numbers based on JM 2007 others chemical jewellery dental electro nics jewellery autocat chemical autocat 3
There are more precious metals in automotive applications! - - global annual gross demand in t* Pt Pd Rh Ir Au Ag Catalysts & DPF 131,7 136,2 26,8 (x) Sensors & spark plugs 5 X Electronics X X X total automotive 136,7 >129 26,8 1?? total mine supply* 207,2 230 25 4 2.500 20.000 % of mine supply 66% >56% 107% 25% DPF= Diesel Particulate Filter catalyst recycling in t/a* 28 29,4 6 % catalyst demand covered by recycling 20% 23% 21% *2007, Based on JM & GFMS figures Automotive is most important segment for Platinum Group Metals (PGM). Recycling only takes place for car catalysts, but hardly for sensors/spark plugs or car electronics 4
Autocat is main driver for PGMs since 1990s Europe: 27% of total demand & 33% of autocat 300 250 200 150 100 t a -1 Pd jewellery others electronics dental chemical autocat net 50 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 250 t a -1 Others Petroleum 200 Jewellery Investment Glas 150 Electronics Chemical Autocat.-net 100 Pt *net demand *net-demand 350 300 250 200 150 100 50 0 120 100 80 60 40 Σ PGM/ t a -1 gross demand Σ PGM/ t a -1 global Europe Rh Pd Rh Pd Pt 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 50 20 Pt 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 5
Autocat demand & technology impact PGM prices which impact catalyst costs 1 0 0 0 8 0 0 $ troz -1 Pt/ Pd: London fixing, Rh:JM-base Palladium M 26.01.01: $ 1094 troz -1 6 0 0 4 0 0 2 0 0 0 1400 1200 8 1 8 2 8 3 8 4 8 5 8 6 8 7 8 8 8 9 9 0 9 1 9 2 9 3 9M 4 9 5 9 6 9 7 9 8 9 9 0 0 0 1 0 2 0 3 0 4 0 5 0 6 0 7 0 8 Platinum 1000 800 600 400 200 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 PGM value 1 autocat troz = 31.1035 (2006) g $ 100 /troz = $ 3215 /kg Europe: 3.6 billion US-$ World: 10.3 billion US-$ 6000 4000 2000 0 Rhodium M 11.5.07 $ 6350 troz -1 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 6
Autocatalysts an above ground PGM-stock to be mined with a 10-15 years delay 350 300 250 200 150 100 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 120 100 Annual PGM gross demand for autocat 50 80 60 40 20 0 Σ PGM/ t a -1 Σ 1980-2007: Input Recycling Rh 356 t - 43 t Pd 1776 t - 176 t Pt 1640 t - 285 t Σ 3772 t 504 t Σ 1980-2007: Input Recycling Rh 91 t - 14 t Pd 499 t - 30 t Pt 581 t - 38 t Σ 1171 t - 82 t global Europe Rh Pd 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Pt Rh Pd Pt Main catalysts recycled today are from the early 1990 s. How much of the later increase will become available for recycling? What needs to be done to secure these resources? Global / Europe cumulative demand 3770 t / 1170 t recycling until 2007 500 t / 80 t still on the road 2300 t / 900 t losses 1000 t / 200 t? CO 2 primary equivalent: 30 Mt for still on the road 13 Mt for losses 1000 M$* 130 15 80 35 *global at 2006 prices 2007 M$ cum Mt CO2 Mt CO2 cum Pd 18.275 1,3 16,7 Pt 60.270 1,8 22,9 Rh 52.022 0,8 10,9 130.567 3,9 50,4 7
Recycling chain for autocatalysts - PGM-refining takes place at the very end Ca. 1.000 dismantlers + 60.000 workshops Sources for spent catalysts from end-of-live vehicles (ELV) І from cat exchange (workshops) < 100 catalyst collectors (incl. subcollectors) numbers for Germany < 10 decanners < 10 smelters/refiners globally (1 fully integrated in Europe) Collection logistic Decanning Smelting PGM-Refining PGM-conc. Refined metals are chemically/physically identical with metals from mining (no downcycling ) cat-ceramic cat-converter The same recycling chain could also be used for car electronics 8
Example for high-tech metals recovery - Umicore s Hoboken plant near Antwerp Pt/Pd yield 98% Unique flowsheet, focus on secondary materials Recovering 17 metals: Au, Ag, Pd, Pt, Rh, Ir, Ru, Cu, Pb, Ni, Sn, Bi, Se, Te, Sb, As, In Annual PGM-output > 30 t 7% of world mine prod. Wide range of complex precious metals bearing feed materials Market leader (EU) for car catalysts & circuit boards Global customer base Minimizing waste World class environmental standards (BAT) 9
Recycling reality for autocatalysts: 50% PGMlosses globally with Europe even worse Material flows of PGM s from autocatalysts in Germany 2001 De-registrations of catalyst-cars Dismantler Collector Decanner Refiner Recovered PGM 41 % 33 % 31 % 30 % 29 % 57% 4% Used cars Loss 4% Loss 1-2% Loss 1-2% Shredder Unidentified outflows (exports etc.) Loss 1% A substantial part of cars are exported into regions without an adequate recycling infrastructure and awareness, which leads finally to real losses of the PGM s Stolen vehicles All %-numbers refer to 100% PGM-input into catalyst cars 2% - yellow: outflow from system boundary (e.g. export of ELV); recycling abroad or re-import of catalyst is theoretically possible ELV monitoring 2004, D 3,1 Mio car de-registrations 1,2 Mio out of these collected/first treated in D 540 000 only final treatment in D 10
The challenge of open cycles - recycling from consumer durables Coated monolith Cat. converter assembly car PGMcomponent Endproduct User 1 final user n PGM -salt PGMprecursor PGM- Refining E.g. car catalysts, PM in electronics, (dental) Production scrap Decanning Conditioning Component collection (possibly multistep) Change of PGM component Losses / System outflows (component / PGM s) Return point/ Collection Car dismantler Dismantling (possibly multistep) No removal of PGM component Losses / System outflows for product Inherently inefficient, PGM recycling rate < 50% for entire lifecycle Multiple changes of ownership, no connection between final owner and manufacturer High product mobility & long life time, no defined EOL, reuse in other regions than 1st use Intransparent material flows, informal participants in early recycling stages High exports of old cars, computers etc. to less developed countries with poor recycling infrastructure/awareness Highly complex structures with numerous opportunities for failure of metals-recovery 11
The European autocat lifecycle - what steps can be influenced by whom? impact area car industry PGM mining << 5% PGM refining cat-/car production cat decanning 1st user Σ 5-15% cat collection Σ<<5% 2nd user ELV dismantling ELV export legislation business ethics* > 40% last user *authorities, recycling & car industry to fight criminal activities 12
There is much more in cars than PGM other metals contained (in kg/vehicle)* built (Europe): 1990 2004 weight/vehicle 900kg 1350kg Cu 1.2%: 11kg 16kg Al 8%: 70kg 120kg Pb 1%: 9kg 13kg Steel 65%: 590kg 870kg + Zn, Sn, Cr, special metals + Ag, Au, Pd in car-electronics + Pt, Ir in spark plugs & sensors built 1990 deregistered in 2006 2004 deregistered in 2020 *source: Daniel Goldmann, VW Sicon 13
PGM recycling has significant benefits which can be of vital interest for the car industry 150t 1kg PGM is contained in 2t 0,5t Mine ore cat-converter catalyst ceramic less environmental burden to mine the catalyst (factor 5 in CO 2 impact) huge intrinsic PGM value that can be recovered (> 50 billion US-$) improved supply security Relief of supply / demand balance mitigates price increase and volatility Car companies can establish internal collection systems for catalysts from contract workshops weight account model with catalyst recycler/producer, recovered PGMs can be used for fresh catalysts Car companies should support an effective recycling of ELV-cars & catalysts in their own interest. ELV-exports out of Europe reduce the supply base for recycling PGMs and other metals significantly. They indirectly contribute to tightness of supply and rising metal prices. A company which follows a sustainable business approach must not ignore the effects of current ELV-exports (image risk) 14
The report Some books for more info: Autoabgaskatalysatoren (2nd ed.) Expert Verlag, Kontakt & Studium ISBN 3-8169-2488-3 400 S, 56 Stoffströme der Platingruppenmetalle GDMB Medienverlag, Clausthal Zellerfeld 2005 ISBN 3-935797-20-6 234 S., über 70 Abbildungen und Tabellen, 45 Materials Flow of PGMs in Germany English edition with intoduction by GFMS GFMS-Verlag, London 2005 ISBN 0-9543293-7-6 300 S., 100 15
Thank you for your attention Umicore Precious Metals Refining christian.hagelueken@eu.umicore.com www.preciousmetals.umicore.com 16
Questions? 17
Annex
Historic milestones in Pt & Pd applications and corresponding price development 1200 US-$/troz Pt Pd annual averages until 2006-08 -> 1989 Pt in PC-harddisks Fuel Cells? 1000 800 600 Industrial demand Consumer demand Jewellery & investment -> 1975 autocat. US 1995-2001 Pd-dominated autocat -> 1985: autocat. Europe -> mid 1990 s Pt- jewellery China 1988: high Ptinvestment Japan -> 2000 Europe Diesel boom 400 200 1900: Pd/C-cat. (fine chemistry) 1900-1930 Pt-cat. H 2 SO 4 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 -> 1920 s Pt-catalyst nitric acid Mid 1950 s Pt-reforming cat. -> late 1960 s Pt- jewellery Japan -> 1985 Pd in MLCC -> 2004 Pdjewellery China -> mid 1980 s: Pt for LCD glass 19
The upstream recycling chain - a market partially beyond industrial control Sometimes normal practices in autocat recycling: Fake converters sold into telquel market (with unloaded bricks, cement filling, iron, ) Leaching of PGMs from converters/ceramics with subsequent sale of leached ceramic to market at normal cat-prices Selling of used converters as spare parts Backdooring of low value converters against too high telquel prices to less educated market participants Tax-free cash purchase Money laundering (one of the reasons for overpricing?) Hidden deals/bribing of contract partners Assay skimmings: manipulation of weights, moisture content, biased samples, false report of analytical results,. Theft:...of new catalysts from cars on a parking lot or a manufacturer s plant, EOL-converters from collectors/decanners,... Concealment of stolen catalysts - it seems not to be difficult to feedback these materials into the recycling chain. Interpol listed criminals temporarily dominating local markets and always finding a refining outlet. Why could assay skimming be attractive? 10 t/a spent autocatalyst at (0.12% Pt, 0.08% Pd, 0.03% Rh Σ 0.23%) 12 kg Pt + 8 kg Pd + 3 kg Rh = 1.2 Mio $* intrinsic value A manipulation of 3% (0.223% vs 0.23% PGM) means a fraud of 36 k$!. This already reaches the magnitude of refining charges of 40 k$. A company could almost offer treatment free of charge and take the profit on assay skimming. often it s even more than 3%... *at Pt=1400 $, Pd = 350 $; Rh = 6000 $/troz These malicious practices create a heavily distorted playing field for those who strictly follow ethical business standards. Pt Pd Rh Summe 0,80 0,30 2,30 g/kg 1,2 $/kg 54,0 9,0 57,9 120,89 PGM-prices $/troz 1400 350 6000 31,1035 $/g 45,011 11,253 192,9 lot size 10 1.208.867 assay bias 1% 12.089 2,28 2% 24.177 2,25 3% 36.266 2,23 4% 48.355 2,21 5% 60.443 2,19 20
Low probability for future PGM-recycling from many export cars Europe: ca. 1/3 of ELVs are exported (ACEA 2004) exports mainly to Eastern Europe (& beyond) & Africa in most of these countries no emission legislation /-control in place insufficient car maintenance, bad road conditions high probability for destruction of catalyst emission of ceramic/pgms (misfire, bumps on converter...) Usually high vehicle lifetime, catalyst has rather no significance (as long as car is still driving) insufficient recycling infrastructur, missing awareness for catalyst recycling difficult logistical frame conditions 21
PGM availability sufficient reserves* at even higher resources** Tons Known PGM-Reserves, being minable economically in theory at 1997 price levels 30.000 25.000 Others North-America 20.000 Russia South Africa 15.000 10.000 * Multiple Total Consumption 2005 5.000 130 * 114 * 119 * 0 Platinum Palladium Rhodium * Could be economically extracted at a given price level **known or assumed PGM content in ore deposits USD/g 1997 2007* Pt 12,73 40,41 Pd 5,72 11,41 Rh 9,58 195,12 * Jan-Sept. 22
Different dimensions of resource scarcity Absolute resource scarcity: depletion of geological resources that can be extracted even at higher prices Relative resource scarcity: supply can (temporarily) not follow an increasing demand Time lag & investment risk for new mines and smelters Political unrest, war, natural disasters, Structural resource scarcity: constraints from coupled production of minor metals (Rh, Ru, Ir, In, Bi, Se, Te ) with major metals (Pt, Ni, Cu, Zn, Pb, ) Continuous degradation of the natural resource base Declining ore grades More difficult mining conditions (mine depth, geographical location, political frame conditions, ) Number of deposits/mines & their global distribution increasing costs, energy demand, environmental burden, impact on biosphere (rain forest, Antarctic, ocean mining, ) regional dependences battle for resources? 23
The Umicore recycling loop for automotive companies PGM-credit on customer weight account coating of fresh catalysts with PGM at Umicore recycling of PGM of spent catalysts at Umicore catalyst manufacturing e.g. by the automotive industry spent catalysts to Umicore collection of spent catalysts/scrap 24