Nornickel Focuses on Boosting Palladium Demand Through New Applications
Nornickel, a top palladium producer, is advancing efforts to expand global demand for palladium by introducing innovative applications, aiming to counteract declining consumption from internal combustion engine vehicles. The company, a leading producer of palladium with annual output exceeding 80 tonnes, anticipates long-term stagnation in automotive industry demand, which currently accounts for over 80% of the metal’s global use.
China has been identified as a key market for these new developments. Nornickel is collaborating with scientists and potential customers to test and refine technologies for hydrogen and solar energy, biofuels, and water purification. Testing of catalysts for fuel cells and proton-exchange membrane (PEM) catalysts is expected to conclude by 2025.
Nornickel projects that China’s demand for palladium in traditional sectors will decline from 66 tonnes in 2023 to 47 tonnes by 2030. However, new applications could boost annual demand in China by 5-10 tonnes starting in 2026-2027. Vitaly Busko, Nornickel’s Vice President, noted that China’s rapid development in hydrogen and green chemistry sectors positions it as a pivotal player, potentially accounting for 40-50% of the global demand for palladium in new industries.
In addition to its focus on China, Nornickel is exploring opportunities in the Middle East, Malaysia, and Brazil. By 2030, the company aims to create 40-50 tonnes of additional palladium demand globally. Key segments include 7-10 tonnes for hydrogen generation and storage, approximately 5 tonnes for glass fibre production, and 12-15 tonnes for microelectronics, which currently consumes around 20 tonnes annually.
As one of the world’s largest palladium producers, Nornickel expects to produce between 2.624 and 2.728 million troy ounces (82-85 tonnes) of the metal in 2024.
