Electric cars will spell the end of platinum-group metals prices.
I own this and a bunch of other metals stocks, but something struck me today. More than 80% of this stuff is used in catalytic converters. As we shift away from oil, the prices of these metals are going to drop. I'm going to get out of the catalytic converter business this year. Word to the wise: you might want to take your profits next chance you get at walk away. Now neodymium, on the other hand...
What other things does MCP do? do you know ? Have you read other messages that details how MCP will be the most profitable player in this area? Give us a neutral view rather than just bashing so that you can buy the stock for cheap OR cover your short for lesser price to maximize the profit.
The world is not going to all electric cars. Hybrids are and should continue to be more important. Platinum and Paladium are used in catalytic converters, which hybrids also require. Apparently Cerium and zirconium are also used in catalytic convertors, but to a lesser degree.Molycorp is not a supplier of Platinum-group metals but has Cerium in abundance. Europe is going to require catalytic convertors for diesel engines and these will contain some Cerium. Diesel automobiles are very common in Europe.
I'm a chemist. What he said is valid. Platinum is used in catalytic converters. If the automobile fleet switches to non-combustion then catalytic converters are less in demand. And hence platinum demand from catalytic converters is reduced. Other elements are also used in catalytic converters and they would see a corresponding reduction in catalytic converter use and demand.
And neodymium, on the other hand will see increased use in non-combustion powered vehicles.