Another Reason to Be Bullish on Palladium: The Hybrid Car Boom

Palladium, this year’s hottest metal, is used mainly to cut pollution from gasoline engines. Yet anyone betting the rise of electric vehicles will curb demand anytime soon is likely to be disappointed, according to the metal’s top producer.

Hybrid-electric cars, which also require precious metals to control pollution, represent a growing percentage of future demand, said Anton Berlin, head of analysis and market development at Norilsk Nickel PJSC. The Russian miner forecasts that combined palladium use in hybrid and plug-in hybrid — or rechargeable — vehicles next year will be nearly triple that of 2016.