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Pablo Hill's avatar

Really solid piece. One angle that deserves more attention: hybrids and plug-in hybrids are now a major cyclical driver of PGM demand—especially palladium and platinum.

The prevailing narrative has been that EVs are going to kill catalytic converter demand, but hybrids are doing the opposite. Because their engines run cooler and cycle on and off frequently, they need more platinum group metals to meet emissions standards. And plug-in hybrids? Despite their electric-only range, they still need a fully capable emissions system for when the engine kicks in. No shortcuts.

Now with automakers pivoting hard toward hybrids—particularly as a hedge against battery cost volatility and infrastructure gaps—we're likely in the early innings of a stealth demand cycle. The metals everyone thought were on their way out are quietly becoming more critical.

PGM supply constraints plus resurgent demand = a setup that could surprise a lot of people who’ve already moved on.

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The Contrarian Capitalist's avatar

Thank you for this fantastic input Pablo Hill. It is highly appreciated. I think that we are in the beginnings of a major commodity cycle and the PGM's are likely to play a big role moving forwards!

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Wasif's avatar

Great series. Thanks for posting it!

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The Contrarian Capitalist's avatar

Thank you for reading it and enjoying it! Plenty more to come!

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