The devices to reduce greenhouse gas emissions in cars are made of precious metals such as palladium, which is a rare metal more expensive than gold, and perhaps that is what makes these cars vulnerable to theft.
It all started when Michael Kivani, an economics professor in San Jose, California, discovered that the catalytic converter responsible for curbing polluting emissions made of precious and rare metals had been stolen from his car, and two days later, the same happened to his sister's car, which made them believe It is not just a coincidence.
In a report published by the American "New York Times" (New York Times), writer Hiroko Tabuchi said that the laws imposed on car emissions around the world, especially in China, led to a high demand for the precious metals used in the manufacture of catalytic converters.
Which explains the high price of some, such as palladium and rhodium.
5 years ago, the price of palladium did not exceed $ 500 an ounce, but last year it doubled 5 times to reach a record level at the threshold of $ 2875 an ounce, and its price now ranges between two thousand and $ 2,500 an ounce, meaning that it is more expensive than gold.
Rhodium prices have increased by more than 3000% from about $ 640 an ounce 5 years ago to 21,900 dollars an ounce this year, meaning that it is 12 times more expensive than gold.
Analysts believe that the rise in prices may accelerate the shift to electric cars, especially since catalytic converters have made the cost of gasoline-powered cars much higher than they were only a year ago.
The author pointed out that the prices of these metals drive the black market for stolen catalytic converters, which can be removed from the car's engine within minutes, and thus the thief can earn hundreds of dollars by selling them to scrap collectors, who in turn sell them to recycling centers that extract the precious metals from them.
Devices to reduce greenhouse gas emissions in cars are made of precious metals such as palladium (Shutterstock)
Theft increased
Nationwide, police have reported an increase in the number of cases of theft of this kind. In St. Louis, cases of catalytic converter theft have more than doubled eight times, from 50 in 2019 to 420 cases last year, and the pace accelerated by the end of the year until early 2021. And in Lexington, South Carolina, 144 catalytic converter thefts were recorded between July and December, which means they tripled compared to the same period last year.
The catalytic converter, located between a car's engine and the muffler, may seem an unlikely target for a national crime wave, the function of this component found in all gasoline-powered cars and trucks sold in the United States since 1975 - and which on the inside resembles a honeycomb covered in layers of precious metals Such as palladium, rhodium, and platinum - to reduce toxic gases emitted from a vehicle.
After the Volkswagen emissions scandal, the carmaker illegally modified pollution controls in its cars to appear cleaner than they actually are, the demand for high-performance catalytic converters made of precious metals has increased.
Rhodium, in particular, reduces nitrogen oxide levels. According to Wilma Swartz, of the London-based precious metals research consultancy, Metals Fox, "We have made significant progress in reducing nitrogen oxide emissions worldwide."
The automobile sector accounts for about 80% of the demand for palladium and rhodium, and at the same time, the impact of the epidemic on exploration work in South Africa - the main producer of rhodium - kept supply limited, which explains the very high rise in demand and prices.
For automakers, the boom in minerals has led to an increase in the cost of producing gasoline cars. Max Layton, a commodity analyst at Citi in London, estimates that the rise in the prices of these metals added $ 18 billion to the global auto industry’s production costs in 2019. This has drained 15% of total cash flow, with these costs rising further in 2020.
Cases of theft of catalytic converters have more than doubled from 50 cases in 2019 to 420 cases last year (Shutterstock)
some solutions
Leighton says that at current prices, the industry is expected to spend more than $ 40 billion this year on metals in catalytic converters only, and said the rising costs are pressuring carmakers to switch to battery-powered electric cars as soon as possible.
Some, like Jerry Torriff, owner of Jerry's car service, after suffering multiple thefts, have resorted to emptying the most vulnerable tires so that the thieves do not slip from underneath.
Some states have also begun requiring scrap yards and other recycling centers to verify with the seller before purchasing used catalytic converters from them. California, for example, requires companies to take a picture or video clip of the seller, and keep these records for two years, but officials say the difference Interstate laws make tracking down the perpetrators nearly impossible.
The writer mentioned that the Internet facilitates the sale of these stolen transformers, as one of the sites offers prices of up to $ 500 for some old foreign car models that contain more precious metals than the modern style found today in the market.
Toyota Prius transformers are considered the most expensive, which is why some owners of these cars are calling for the addition of anti-theft protection measures, and Ed Helwig, a Toyota spokesman, described these thefts as an industry-wide challenge and urged owners to stop cars in well-lit areas. .
For its part, the police advise to park cars in safe places or in well-lit areas, and the vehicle identification number or the license plate ID on the adapter can help to track the adapter in case it is stolen.