Arctic Miner Promotes Palladium Glass Fibre Application Amid Sour Market

Russia’s Nornickel, the world's top supplier of palladium, a metal mainly used in car manufacturing, is pushing to expand its industrial applications as demand from automakers decline.

In collaboration with the Krasnoyarsk Non-Ferrous Metals Plant, Russian state-owned refinery, and with support from the Chinese Precious Metals Committee, the company introduced palladium-based bushings as an alternative to platinum-based in glass fibre production, Nornickel said in a statement.

Palladium prices have seen a significant downward trend since reaching record highs in 2021, when the average closing price was $2,388.36 per ounce. The metal has experienced consistent annual declines, falling 22.08% in 2021, 10.10% in 2022, and a dramatic 35.97% in 2023, with prices dropping to $1,100.69 by year-end. This price correction, with palladium now trading around $956 per ounce in 2025, represents a 60% decrease from 2021 peaks, making it increasingly competitive against platinum for industrial applications and creating economic incentives for manufacturers to consider substitution.

Platinum has traditionally been the metal of choice for glass fibre bushings, with global consumption estimated at around 21.8 tonnes (approximately 700,900 troy ounces) annually. However, industry sources suggest this figure is significantly underestimated, particularly in China, where usage reportedly exceeds 108 tonnes (about 3.47 million troy ounces) per year. Glass fibre, a material critical to industries ranging from boat manufacturing to solar panel frames, could benefit from the shift, as palladium offers similar performance at a lower density, potentially improving cost-efficiency for producers.

Nornickel is seeking to offset weakening demand from the internal combustion engine sector, where palladium has been widely used in catalytic converters. The company sees China as a key market for innovation and is collaborating with researchers and potential buyers to explore new applications, including hydrogen and solar energy, biofuel production, and water purification.

Industry projections suggest that China’s demand for palladium in traditional sectors could drop to 47 tonnes by 2030, down from 66 tonnes in 2023. However, Nornickel estimates that new palladium-based applications could increase demand by an additional 5-10 tonnes annually starting in 2026. The company has set a global target of generating 40-50 tonnes of new palladium demand by 2030, with potential orders including 7-10 tonnes for hydrogen generation and storage, 5 tonnes for glass fibre production, and up to 15 tonnes for microelectronics, where demand currently stands at approximately 20 tonnes.