The US has proposed unwinding emissions legislation. Our view is that these actions reflect moves against EV mandating which may further slow BEV adoption. However, the repealing of the Environmental Protection Agency’s (EPA) ability to regulate greenhouse gas emissions maintains pollutant emissions control and should not negatively impact US automotive PGM demand (~12% of total 3E PGM demand in 2024).The EPA currently regulates greenhouse gases (GHG) and “criteria pollutants”. GHG covers carbon dioxide (CO2) while criteria pollutants includes emissions like nitrogen oxide (NOx). In proposing to repeal GHG emissions standards, the EPA has simultaneously noted that legislation regulating criteria pollutants will be unaffected.Since catalytic convertors do not reduce CO2 emissions, but rather reduce harmful emissions classified as criteria pollutants; automotive PGM demand in the US should be sustained. Moreover, PGM demand will benefit from slower BEV adoption and tightening NOx and non-methane organic emissions limits in 2027.
