Rhodium Prices Set to Outperform Platinum and Palladium in 2025, Says Metals Focus

Rhodium is expected to be the standout performer among the platinum group metals (PGMs) in 2025, according to a new report released by Metals Focus, a leading precious metals consultancy. The firm’s latest research indicates that rhodium prices are set to outpace both platinum and palladium, driven by a combination of resilient demand and constrained supply.

Key Drivers Behind Rhodium’s Bullish Outlook

The positive outlook for rhodium hinges primarily on continued demand from the automotive industry, where the metal plays a crucial role in catalytic converters used to control vehicle emissions. Despite growing momentum behind electric vehicles (EVs), the majority of cars sold globally in 2025 are still expected to feature internal combustion engines or hybrid systems—both of which rely on PGMs, especially rhodium, for emissions control.

Stringent environmental regulations, particularly in China, Europe, and North America, are pushing automakers to increase the loadings of rhodium in their catalytic converters to meet tougher emissions standards. This regulatory push is expected to sustain a solid baseline of industrial demand throughout the year.

Limited Supply Supports Higher Prices

On the supply side, rhodium production remains tightly constrained. As a by-product of platinum and palladium mining, its output is difficult to scale up independently. With many South African mines—where most of the world’s rhodium is produced—facing operational challenges such as labor disruptions, power outages, and rising costs, Metals Focus expects global rhodium supply to remain flat or even decline slightly in 2025.

This combination of stable-to-growing demand and limited supply creates a classic bullish scenario for rhodium prices.

Platinum and Palladium Lag Behind

In contrast, the outlook for platinum and palladium remains more tempered. While both metals will continue to play essential roles in auto manufacturing and various industrial processes, they are facing increasing headwinds. Palladium, in particular, is likely to face substitution pressure as automakers shift towards using more platinum in gasoline engine catalysts—a trend that has accelerated over the past few years due to palladium’s historically higher prices.

Additionally, the ongoing transition to EVs poses long-term structural challenges for all PGMs. However, rhodium appears better positioned to weather this shift in the near term, especially given its unique role in NOx emissions control.

Investor Sentiment and Market Implications

Investor interest in rhodium has traditionally been more muted due to its illiquid nature and volatile price movements. However, the strong fundamentals projected for 2025 may attract renewed attention from institutional buyers and high-net-worth individuals seeking diversification within the commodities space.

Metals Focus emphasizes that while price spikes are possible, the market remains highly sensitive to changes in auto production levels, recycling rates, and geopolitical developments in mining regions. Nevertheless, rhodium’s supply-demand dynamics appear more supportive of upward price momentum compared to its PGM peers.