Platinum from Anglo Platinum in catalysts of European car ....doc

Platinum from AngloPlatinum in catalysts of European car manufacturers

A research paper prepared for Netherlands institute for Southern Africa (NiZA)

Platinum from AngloPlatinum in catalysts of European car manufacturers

A research paper prepared for Netherlands institute for Southern Africa (NiZA)

Final version: 26 March 2008

Jan Willem van GelderKaren Kammeraat

ProfundoVan Duurenlaan 91901 KX Castricum The NetherlandsTel: +31-251-658385Fax: +31-251-658386E-mail: [email protected]: www.profundo.nl

Contents

Summary...................................................................................................................... i

Introduction................................................................................................................1

Chapter 1 Platinum in car catalysts.................................................................2

1.1 Supply and demand...................................................................................21.2 Recycling....................................................................................................21.3 Platinum in catalysts.................................................................................31.4 Catalyst production companies................................................................31.5 New developments.....................................................................................41.6 Roundtable on Sustainable PGM..............................................................5

Chapter 2 Platinum catalyst use by European car manufacturers...............6

2.1 Introduction................................................................................................62.2 Ferrari..........................................................................................................62.3 Fiat...............................................................................................................62.4 Renault........................................................................................................72.5 Rover...........................................................................................................72.6 Volkswagen.................................................................................................72.7 Volvo............................................................................................................82.8 Catalyst suppliers of other car manufacturers.......................................82.9 Conclusions................................................................................................9

Appendix 1 References......................................................................................11

Summary

This report researches if a selection of six major car brands in Europe - Fiat, Ferrari, Renault, Rover, Volkswagen and Volvo - are using auto catalysts with platinum from the South African mining company AngloPlatinum in their cars. The report also aims to assess how many catalysts are used by each car manufacturer and which quantity of platinum is used in these catalysts.The six car brands that are topic of this research sold together about 8.5 million cars in 2006, ranging from 6,368 Ferraris up to 3.3 million Volkswagens. Renault and Fiat delivered both more than 2 million cars, while LandRover delivered around 200,000 cars and Volvo more than 400,000 cars.

To curb noxious emissions, every car produced in Europe today is equipped with an exhaust gas catalyst and every catalyst contains platinum. In 2006, 2.16 million ounce (67.2 tons) of platinum were used for the European production of car exhaust gas catalysts.Each type of car has a different engine and thus a different catalyst with a different platinum quantity. An auto catalyst for a passenger car contains 4 to 5 grams platinum on average. The catalysts of diesel cars, now accounting for 52% of the European market, require more platinum than petrol cars: on average 8 grams. Cars with petrol engines contain on average 1 gram of platinum in their catalysts. (Petrol catalysts do however contain significantly more palladium and rhodium, which is mined by the same mining companies.)

The three major suppliers of catalytic converters for cars are Johnson Matthey (31%), BASF Catalysts (31%) and Umicore (25%), together accounting for 87% of the global market. All six car brands that are topic of this research - Ferrari, Fiat, Renault, Rover, Volkswagen and Volvo - are using Johnson Matthey catalysts in their vehicles. Volkswagen, Renault, LandRover, Volvo, Fiat and Ford are even principal customers of Johnson Matthey. Most car manufacturers seem to buy catalysts from more than one supplier, however. BASF Catalysts claims to supply to virtually every major car and truck manufacturer in the world and is a supplier for certain of Ferrari, Fiat and Volvo. Umicore is a supplier for certain of Volkswagen and Volvo, but probably supplies more brands as well.

All three major catalyst companies are major clients of AngloPlatinum and Johnson Matthey is its sole marketing agent. AngloPlatinum supplies about 40% of global platinum demand, so it is likely that the three catalyst producers also purchase platinum from other mining companies. A smaller percentage of the platinum used in catalysts (less than 9% in Europe), is originating from the recycling of spent catalysts.

Based on our research findings it is not possible to state with 100% certainty that the platinum in a certain auto catalyst originates from the AngloPlatinum mines in South Africa, because of the complicated and non-transparent supply chain. However, based on:

the strong global market share of AngloPlatinum (40%),the dominant global marketshare of the three main catalyst producers (87%),the ties between AngloPlatinum and these three catalyst producers, andthe relationships between these three catalyst manufacturers and the six car brands researched,

it can be concluded that it is highly probable that a significant percentage of the cars marketed by each selected car brand contains platinum from the AngloPlatinum mines. This is especially true for diesel cars, which contain much more platinum than petrol cars.

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Introduction

This reports builds on the findings of the research paper ‘Influencing the CSR policies of South African platinum mines’, that Profundo prepared for NiZA in June 2007. It was recommended in this report to start a dialogue with the European companies importing and processing platinum. The automotive industry is the largest consumer of platinum in Europe. NiZA and ActionAid made a selection of six major car brands in Europe: Fiat, Ferrari, Renault, Rover, Volkswagen and Volvo. The question to be answered is whether their cars are using auto catalysts with platinum from the South African mining company AngloPlatinum? How many catalysts are used by each car manufacturer and what is the quantity of platinum in these catalysts?

An indicative answer to these questions is presented in this research paper. The findings are based on company sources (annual reports, websites and other sources) and articles in newspapers and trade and business magazines. Furthermore, questions regarding their trade and supply relationships were raised by telephone and e-mail with the three major catalyst producers and the six car brands researched.1 This research paper also made use of an earlier report on the platinum used in catalysts by the Swedish car brands Volvo and Saab, which was commissioned by ActionAid Sweden.2

This research paper is structured as follows: Chapter 1 describes the supply and demand of platinum, including recycling. It also provides general information about the usage of platinum in auto catalysts, including some new developments, and gives an update of the activities of the Roundtable on Sustainable Platinum Group Metals.Chapter 2 provides the findings for each of the six selected car brands, such as annual production figures, relationships with catalysts manufacturers and activities in the area of platinum reduction.

A summary of the findings of this research paper can be found on the first pages of this report.

1 The following companies were contacted:

3 March 2008: Phone call to Volkswagen AG Wolfsburg. They promised to return my call, which they did and they provided an email address. I wrote to this email address, and two other addresses I found on the website. They answered that the message is forwarded to responsible colleagues.3 March 2008: Phone call to Land Rover. The question was written down and emailed by the communications department to the responsible department, with the promise to receive an answer within 24 hours. No reply until now.4 March 2008: Phone call to Ferrari Western Europe, where I was told that they could not give information about suppliers. The information at Ferrari websites is mainly targeted at (potential) Ferrari owners.3 March 2008: Email to Renault. As a reply they provided me with the Internet address of the Suppliers Portal, which you can only enter as a supplier. After further communication they forwarded the question to the Purchasing Communications Department.3 March 2008: Email to Fiat. Message was forwarded to the responsible department.4 March 2008. Emails to BASF Catalysts and Umicore.

2 Report for ActionAid: Swedish links to AngloPlatinum and Impala Platinum’s mines in South Africa, Genombrott, Stockholm, 27 December 2007.

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Chapter 1 Platinum in car catalysts

1.1 Supply and demand

The global demand for platinum rose by 1.2% to 6.78 million ounces in 2006, supported by an increase in the use of this metal for auto catalysts. The demand in 2007 is expected to grow to a record 6.93 million ounces. On a global scale, the automotive market represented more than 60% of demand with 4.24 million ounces in 2007 (4.20 million ounces in 2006). The European consumption of platinum for auto catalysts reached 2.16 million ounces in 2006. For 2007 this is estimated to be 2.11 million ounces, or 30% of global platinum demand.3 About 90% of the European demand for platinum in auto catalysts is used in diesel cars. The two main reasons for the continuous increase of the use of platinum in auto catalysts are the stricter European emissions legislations, and the relative increase of diesel engine cars. In Europe, 52% of all new light duty vehicles are now diesel-powered. The sales of vehicles in Europe continue to stay on the same level.4

Global supplies of platinum climbed in 2006, rising at a slightly faster rate than demand, to reach a total of 6.79 million ounces. South Africa contributed 5.29 million ounces (78%) to this supply, of which AngloPlatinum produced 2.82 million ounces (54% of South African supply and 42% of global supply). For 2007 it was expected that supply would fall with 2% to 6.66 million ounces. The South African contribution was expected to be 5.22 million ounces, of which AngloPlatinum would produce 2.62 million ounces (39% of global supply). Reasons for the decrease in supply were safety issues, labour strikes and other labour problems.56

Platinum group metals are traded on the global market. This is a complicating factor in tracking the source of the platinum. Metals traded on the global market vary in the degree to which they are processed, and include recycled platinum as well as manufactured catalysts.7

1.2 Recycling

Globally, the recovery of spent auto catalysts increased with 85,000 oz. to a record of 855,000 oz. in 2006. This amounts to about 20% of the global platinum demand for auto catalysts.8

3 Platinum 2007 Interim Review, Johnson Mattheys Precious Metals Marketing, Hartfordshire, November 2007.


5 Platinum 2007, Johnson Mattheys Precious Metals Marketing, Hartfordshire, 8 May 2007.




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Remarkably, Europe is lagging behind in platinum recycling. While Europe accounts for about half of the global platinum demand for auto catalysts, Europe recycled only 185,000 oz. (22% of global recycling). In Europe, recycled platinum now accounts for less than 9% of platinum consumption in the auto catalyst industry. This might probably change in the near future, as auto catalyst reclamation is boosted in Europe by the adoption of the European Union’s End of Vehicle Directive of October 2000 which specifies minimum levels of recycling for scrapped vehicles.9

All major manufacturers of auto catalysts recycle platinum. There is a strong relationship between the price of auto catalysts and the price of platinum. By recycling manufacturers are less vulnerable to price fluctuations. About 50% of old catalysts are recycled, but because a smaller percentage of older cars was equipped with exhaust gas catalysts these recycling efforts yield only 20% of the present global platinum demand for catalysts. Recycling rates can still be increased, but never will reach 100% as not all platinum can be recycled from catalysts. The use of leaded petrol or poor quality diesel, often used in poorer countries, can destroy the catalyst and make it impossible to recycle the platinum.10

1.3 Platinum in catalysts

The auto catalyst plays a pivotal role in reducing pollution caused by car traffic. Today, all new manufactured cars in Europe are fitted with catalysts that significantly reduce toxic emissions, in particular hydrocarbon, carbon monoxide and nitric oxide. Each time a vehicle maker brings out a new engine, a new type of catalyst is required. The large degree in variation means that every year several hundred different types of catalysts are produced to suit the requirements of the car manufacturers.11

Platinum and other platinum group metals (palladium and rhodium) are the actual catalysts, which are placed inside the core of the catalytic converter. The core is developed together by the catalysts company and the car manufacturer, and is subsequently produced by a catalyst company. Car manufacturers purchase the ceramic core and send it to manufacturers of exhaust systems. These will assemble the exhaust system, which is then sent to the car manufacturer that assembles the car.12

The catalyst formulation and content of platinum group metals used will vary greatly from one vehicle to another, based on the engine's control strategy, the relevant emissions control legislation, the engine's size and the exact position of the catalyst in the car. The worldwide average platinum group metal content is around 4-5 grams per car catalyst, but the range is very wide, from 1 g on micro cars to 15 g or more for really big, powerful vehicles. Currently, most gasoline-fuelled vehicles use a combination of palladium and rhodium as the catalytic metals, but a number also use platinum. A common ratio for a gasoline car catalyst is 1.5 grams platinum and 4.5 grams palladium.13

In diesel vehicles, although the catalyst loading and catalyst size vary greatly, the metal formulation varies little, being mainly based on platinum. Platinum is easily the most efficient metal for reducing emissions from the oxygen-rich exhaust gas of the diesel engine.14 This is caused by the fact that catalysts in general require high temperatures to function. Diesel engines operate at a lower temperature than petrol engines, and only few catalysts are able to function properly under these conditions. Therefore catalysts for diesel engines are fairly

11 Umicore discovers the catalyst for growth, Financial Times, 15 July 2007.


13 Platinum and hydrogen for fuel cell vehicles, UK Department for Transport, 26 January 2006.

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dependent on a higher proportion of platinum.15

The exact amount of platinum and other platinum group metals in a specific catalyst is confidential information between the manufacturer of the catalyst and the car manufacturer.16

1.4 Catalyst production companies

The three major suppliers of catalytic converters for cars are (including global market shares):

Johnson Matthey United Kingdom31%

BASF Catalysts Germany31%

Umicore Belgium25%

These three companies together account for 87% of the global market in January 2007.17 These market shares were calculated after BASF Catalysts acquired the American catalyst manufacturer Engelhard in June 2006.18

More recently, Umicore acquired the catalyst business of the American company Delphi in October 2007, so its global market share probably now is close to 30% as well.19

All three companies are major customers of Anglo Platinum.20 Johnson Matthey is the world’s leading distributor of platinum group metals and the sole marketing agent for Anglo Platinum, the world’s largest producer of platinum.21 Johnson Matthey lists almost all major car producers in the world among its customers. Some are ranked as principal customers - Volkswagen, Audi, Ford, LandRover, Volvo, Renault, PSA Peugeot Citroën, Fiat, General Motors, Toyota and Porsche - which probably means they are using Johnson Matthey catalysts on a large number of models.22

BASF also supplies catalysts to virtually every major car and truck manufacturer in the world.23 Presumably, the same applies to the global number three, Umicore. Whenever a car manufacturer is working on a new model, an cooperation relationship is started with one of the large catalyst producers, to develop a catalyst suited to the needs and requirements of the new car model.



14 Quantity of PGM in an auto catalyst, Platinum Metals Review, 26 June 2007.

15 Platinum 2002, Johnson Mattheys Precious Metals Marketing, Hartfordshire, May 2002.

16 E-mail from Guy Tremayne from Johnson Matthey, 5 March 2008.

17 Presentation to Analysts & Investors, Johnson Matthey Environmental Catalysts and Technologies, Royston, 24 January 2007.

18 Website BASF Catalysts (www.catalysts.basf.com), Viewed in March 2008.

19 Delphi sells catalyst business to Umicore, Automotive News, Detroit, 8 October 2007.

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Smaller catalyst producers are: Ecocat (Finland), Cataler (Japan) and Heraeus (Germany).24 Heraeus is a customer of AngloPlatinum as well.25 These smaller producers seem to work only with a limited number of car manufacturers.

It is interesting to note that South Africa is not only a major platinum supplier, but now is also a leading supplier of catalytic converters. The industry in Port Elizabeth alone accounts for 14% of the catalytic converter production in the world. Engelhard (part of BASF Catalysts) and Umicore/Delphi are located in Port Elizabeth. Johnson Matthey and Cataler are producing catalysts in other parts of South Africa. The exhaust systems producers are also present in South Africa, and mainly in Port Elizabeth. There is also a Catalytic Converter Interest Group in South Africa, representing the interest of vehicle manufacturers, auto catalysts producers and exhaust system producers.26 No evidence is found that South African catalysts or exhaust systems are exported to Europe.

1.5 New developments

The high platinum price has led carmakers to try to reduce platinum use in catalysts. Little scope remains to remove platinum from gasoline catalysts, where a switch to palladium has been underway for some time, so development has focused on introducing palladium into diesel catalysts. This substitution of metals in new catalyst technology is expected to continue for the next few years.27 As palladium is mined by the same companies as platinum, this shift will not have much influence on the trade relations studied in this report.

More significant in this respect could be the possible application of gold in exhaust gas catalysts. The World Gold Council (WGC) and Nanostellar, a leading-edge developer of emission control technologies are developing a catalyst formulation for use in the automotive industry that for the first time includes gold alongside traditional platinum and palladium metals. The inclusion of gold enables manufacturers of light and heavy-duty diesel engines to reduce noxious emissions by as much as 40% more than existing pure platinum catalysts, enabling significant savings for automotive manufacturers. WGC reports "independent test results confirm Nanostellar's breakthrough which, if adopted by the automotive industry, could lead to an increase in industrial demand for gold”. The price of gold is currently nearly half the price of platinum.28

Another relevant development is the automotive industry researching the possibility of using fuel cells in vehicles. While this may be a promising development in terms of emission reduction, the quantity of platinum used probably will not decrease. Currently, a fuel cell uses about 60 gram of platinum, which is already a tenfold decrease compared to 1994. But further reductions are expected with an ultimate goal of 6 grams.29

26 The world looks to Port Elizabeth as its catalytic converter capital, The Herald, 6 March 2008.


28 More gold in auto catalysts - bad news for PGMs?, Mineweb, 10 December 2007.

29 Platinum and hydrogen for fuel cell vehicles, UK Department for Transport, 26 January 2006.

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1.6 Roundtable on Sustainable PGM

In December 2007 the second Roundtable on Sustainable Platinum Group Metals was organized in Brussels. While the first roundtable in 2005 only focused on Russia, now the scope was widened to South Africa and the United States. There were presentations from, amongst others, AngloPlatinum, Umicore and the Directorate-General Enterprise & Industry of the European Commission.

The participants agreed that it is important to develop a set of simple environmental and social indicators that allow for comparison and benchmarking. These will function as a common reference for improving sustainability in the PGM mining industry. The question was discussed who should be responsible for formulating the sustainability indicators. Certainly the PGM producing companies, coordinated by their association IPA, should play a major role. By providing a multi-stakeholder input, the PGM Roundtable could substantially contribute to their credibility. Most participants felt the need for making the PGM chain more transparent and that this would require a certain level of traceability. No concrete models were discussed, but it was acknowledged that this is not an easy task.

It was also concluded that recycling of PGM from cars is an opportunity for the car industry. Used catalytic converters should be regarded as a PGM resource in the first place and not as waste. Catalytic converter scrap has a much higher PGM content than PGM containing ores. Recycling PGM not only helps to save scarce natural resources. It is also much more energy efficient than PGM production from ores. Creating more transparency on material flows of cars and catalysts and the actors involved is a crucial requirement in this context.

Apparently it was difficult to define the role of car manufacturers. There was no agreement on the precise role car manufacturers could play in promoting sustainable PGM mining. Although it was recognised that they cannot possibly assume a direct responsibility for mining issues, many felt that (at least for primary PGM supplies) car manufacturers should require from their PGM and/or catalytic converter suppliers basic information about the identity of PGM producers and their sustainability performance. There was no agreement either on the role car manufacturers could or should play in taking responsibility for PGM recycling at the end of their cars’ life. However, it was clear that a centrally important issue for car manufacturers will be the secure supply of PGM (among many other natural resources). Especially when new technological developments, either within the car industry (e.g. fuel cells) or in other sectors (e.g. electronics) require large quantities of PGM, supply security and price volatility can present serious problems.30

Five car-manufacturing companies were present at this roundtable (Toyota, Mitsubishi, Daimler, PSA Peugeot Citroen and Renault). Current plans are to undertake a pilot project with several participants with the goal to create more transparency in the chain. The next roundtable is planned within two years time.31

30 Website Roundtable on Sustainable Platinum Group Metals (www.sustainable-platinum.org), Viewed in March 2008.

31 Telephone conversation with Wouter Pronk of MilieuKontakt Oost-Europa, 6 March 2008.

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http://www.sustainable-platinum.org/

Chapter 2 Platinum catalyst use by European car manufacturers

2.1 Introduction

European vehicle manufacturers purchased 2.16 million troy ounces of platinum for use in auto catalysts in 2006. The number of cars produced in Western Europe in 2006 was 14.6 million. That means an average amount of platinum per catalyst of 0.148 ounce (4.6 gram).32

Almost 90% of the platinum was used for diesel car catalysts. As 52% of the cars sold in Europe are now diesel powered, these diesel cars had an average platinum content of 8.0 grams. Petrol engine cars have an average platinum content of 1.0 grams.33

In this chapter we will specifically look at the application of platinum in exhaust gas catalysts by six major European car brands: Fiat, Ferrari, Renault, Rover, Volkswagen and Volvo. The question to be answered is whether their cars are using auto catalysts which contain platinum mined by the South African mining company AngloPlatinum? How many catalysts are used by each car manufacturer and what is the quantity of platinum in these catalysts?

All six mentioned car brands are using Johnson Matthey auto catalysts. Moreover, Volkswagen, Renault, LandRover, Volvo and Fiat are all principal customers of Johnson Matthey.34 But they also purchase auto catalysts from other suppliers as well, which makes it difficult to establish the chain from a mine to a specific auto catalyst. But, as all three main manufacturers of auto catalysts purchase metal directly from AngloPlatinum, there is a high chance for any car produced by these six brands could potentially contain platinum from the AngloPlatinum mines.

2.2 Ferrari

Ferrari is part of the Fiat Group. In 2007, a total of 6,368 Ferraris were delivered. This was an increase of 11% compared to 2006, mainly caused by an increase in sales in the United States, Eastern Europe and the Far East.35

Ferraris, and in general sports cars, have petrol engines, so it might well be that Ferrari catalysts have only 1 gram of platinum in their catalysts. Several sports cars however are experimenting successfully with diesel engines in sports cars, which might be followed by Ferrari.

Ferrari is using Johnson Matthey catalysts on some models.36 BASF’s PremAir catalysts are used on the Ferrari P4/5.37




35 Website Fiat Group (www.fiatgroup.com), viewed in March 2008.


37 Premair ozone-eating technology featured on high-end Ferrari supercar, BASF Catalysts, 22 February 2007.

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2.3 Fiat

In 2007, Fiat sold 2,233,800 cars and light commercial vehicles.38

Fiat is a principal customer of Johnson Matthey.39 Fiat also collaborates closely with BASF Catalysts and awarded BASF Catalysts with a Qualitas Premium Award, for the achievements in high performance and cost savings through a reduction in precious metals usage for the 1.3-liter diesel engine.40 ArvinMeritor and Magneti Marelli are producing exhaust and catalytic systems in the Fiat supplier park in Italy.41

2.4 Renault

Renault sold 1,729,000 cars and light commercial vehicles in Europe in 2006. Worldwide they sold 2,433,000 cars and light commercial vehicles. Renault has a market share of 9.4% in Europe.42

Renault is mentioned as a principal customer by Johnson Matthey.43 BASF supplies catalysts to virtually every major car and truck manufacturer in the world, probably including Renault.44

Renault is active in the field of reduced and more sustainable use of platinum. Together with their alliance partner Nissan Motor Corporation they announced breakthroughs in catalytic converter technology, which will reduce the use of PGM in converters with 50 to 90%. The first cars with these catalysts are expected on the market in 2009.45 Purchasing is for 75% done by the alliance.

Jean Philippe Hermine (responsible for the recycling policy at the environmental department) of Renault is a member of the International Committee of the Roundtable on Sustainable Platinum Group Metals.46

42 Annual report 2006, Renault, Boulogne Bilancourt, May 2007.


44 E-mail Jim Chirumbole (Director BASF Corporation USA), 10 March 2008.

20 Website AngloPlatinum (www.angloplatinum.com), Viewed in March 2008.

21 Website Johnson Matthey (www.matthey.com), Viewed in March 2008.



24 Company websites, Viewed in March 2008.

25 Website Anglo Platinum (www.angloplatinum.com), Viewed in March 2008.

38 Website Fiat Group (www.fiatgroup.com), viewed in March 2008.


40 BASF Pioneering Emission Solutions, Automotive Industries, April 2007.

41 2006 Guide to Purchasing, Automotive News Europe, 20 February 2006.

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http://www.matthey.com/

http://www.angloplatinum.com/

2.5 Rover

Rover cars were produced until 2005, so they are no longer in production. In 1995, British Leyland sold the Jaguar brand to Ford. The MG Rover brand was sold in 1997 to BMW. In 2000, Rover was separated into two companies. BMW kept Mini and sold Rover to Ford. In 2005 the Rover factory once again had financial problems and the factory was purchased by the Chinese Nanjing Automotive Group. Ford kept the brand name Rover and only produces the Land Rover.47 The sale of Land Rover from Ford to the Indian company Tata will be completed in March 2008.48

In 2006, 193,640 Land Rovers were sold, of which 51% (98,756 cars) in Europe.49 80% of Land Rover sales are diesel powered.50 In 2007, the sales increased with 17.6% to 226,395 cars sold worldwide. In the United Kingdom, sales were 50,664 cars, an increase of 7%, making the United Kingdom the biggest market. Both the worldwide and the United Kingdom sales broke records. Most Land Rovers are produced in Solihull (United Kingdom). 51

Land Rover is a principal customer of Johnson Matthey.52

LandRover cars are larger than the average passenger car. Also far more cars than average are diesel powered (80% instead of the average of 52%). These two facts lead to the conclusion that a catalyst in a LandRover vehicle will probably have a higher quantity of platinum in its catalysts than the average of 4 to 5 grams.

2.6 Volkswagen

In 2006 3.3 million Volkswagens were sold worldwide by the Volkswagen Group. Every fifth vehicle registered in Germany in 2006 was a Volkswagen. 56% of the cars of the Volkswagen Group are sold in Western Europe.53

Volkswagen is not willing to provide information about its suppliers as these data are confidential.54 But Johnson Matthey mentions Volkswagen as a principal customer of Johnson Matthey.55 BASF supplies catalysts to virtually every major car and truck manufacturer in the world, probably including Volkswagen.56

49 Annual Report 2006, Ford Motor Company, Dearborn, 7 March 2007.

50 Website Land Rover (www.landrover.co.uk), Viewed in March 2008.

51 Website Land Rover (www.landrover.co.uk), Viewed in March 2008.


53 Annual Report 2006, Volkswagen, Wolfsburg, 2 March 2007.

45 Breakthrough catalyst technology won’t move platinum market yet, Mineweb, 26 October 2007.

46 Website Roundtable on Sustainable Platinum Group Metals (www.sustainable-platinum.org), Viewed in March 2008.

47 Website Wikipedia (www.wikipedia.org), Viewed in March 2008.

48 Jaguar - Land Rover deal will be signed within weeks, Automotive News, 7 March 200.8

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http://www.sustainable-platinum.org/

Volkswagen is working on the reduction of the use of platinum. For example, in cooperation with the Swiss Federal Material Testing and Research Institute (EMPA) and Umicore, the company developed a new catalyst designed specifically for natural gas engines. The companies claim the new catalyst reduces NOx emissions by around 50% and it costs less because it uses fewer precious metals than existing models.57

Volkswagen makes life cycle assessments of its most popular cars. In November 2007 the Passat was assessed and in January 2008 the Golf. The Golf was assessed in 2001 as well. In the Life Cycle Inventory of 2001 platinum group metals were mentioned as raw materials, but this was no longer the case in 2007 and 2008. 1,977 kg of PGM ore was used for the petrol car and 1,497 kg PGM ore for the diesel Golf. From the environmental assessments it emerged that the main impact on the environment of a car is the fuel consumption, so this is where the reports of 2007 and 2008 focus on.58

2.7 Volvo

Volvo Cars is owned by the American car manufacturer Ford. 428,780 Volvo vehicles were sold in 2006, of which 56% (240,117 cars) in Europe.59

Volvo Car Corporation purchases the majority of its exhaust systems from the French company Faurecia, which uses catalysts from BASF, Umicore and Johnson Matthey. Volvo also purchases exhaust systems from Eberspächer. Volvo purchases the auto catalysts itself, but also through its owner, Ford.60

BASF’s PremAir catalysts are featured on most Volvo cars. This was not the first environmental collaboration between Volvo and BASF. The two companies teamed up more than 25 years ago to commercialize the first three-way auto catalyst - the type of pollution-control equipment used on more than 80 % of the world's new cars.61

2.8 Catalyst suppliers of other car manufacturers

While this research project concentrated on six European car brands, information was found on catalyst companies supplying to other car manufacturers as well. As most of these car manufacturers have production facilities in Europe as well and have significant market shares on the European market, this information could be of relevance:

Alfa Romeo: The Italian car manufacturer Alfa Romeo, owned by Fiat, is a customer of Johnson Matthey.62

58 Life Cycle Inventory for the Golf A4, G.W. Schweimer Volkswagen Wolfsburg and M. Levin University of Kassel, 2001; The Passat Environmental Commendation, Volkswagen, Wolfsburg, November 2007; The Golf Environmental Commendation, Volkswagen, Wolfsburg, January 2008.



61 Website BASF Catalysts (www.catalysts.basf.com), viewed in March 2008.


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Audi: The German car manufacturer Audi (owned by Volkswagen) is a principal customer of Johnson Matthey.63 921,000 cars were delivered worldwide in 2006.64

Daihatsu: The Japanese car manufacturer Daihatsu is a customer of the Japanese catalyst company Cataler.65

Ford: The American car manufacturer Ford is a principal customer of Johnson Matthey.66 Among the 36 preferred global suppliers of Ford are Engelhard (now: BASF Catalysts), Umicore and Johnson Matthey.67 In 2006, 5.5 million Fords were delivered of which 27% in Europe (1.5 million cars).68

General Motors: The American car manufacturer General Motors is a principal customer of Johnson Matthey.69 At least since its acquisition of Delphi, Umicore is also a supplier of General Motors.70

Honda: The Japanese car manufacturer Honda is buying platinum group metals directly from Anglo Platinum.71 Honda also is a customer of Johnson Matthey.72

Jaguar: The British car manufacturer Jaguar, a subsidiary of Ford, is a customer of Johnson Matthey.73 In 2006, 75,000 Jaguars were delivered, of which 55% in Europe (41,000 cars).74

Mazda: The Japanese car manufacturer Mazda, owned by Ford, is a customer of Johnson Matthey.75 In 2006, 1.3 million cars were delivered of which 21% in Europe (273,000 cars).76

Mitsubishi: The Japanese car manufacturer Mitsubishi is a customer of Johnson Matthey.77 Mitsubishi was present at the 2007 Roundtable on Sustainable Platinum Group Metals.

Nissan: The Japanese car manufacturer Nissan, owned by Renault, is a customer of Johnson Matthey.78

Porsche: The German car manufacturer Porsche is a principal customer of Johnson Matthey.79

PSA: The French car manufacturer PSA, producer of Peugeot and Citroen cars, is a principal customer of Johnson Matthey.80 Umicore also is an important supplier of diesel catalysts to PSA.81 PSA was present at the 2007 Roundtable on Sustainable Platinum Group Metals.

Rolls-Royce: The British car manufacturer Rolls-Royce is a customer of Johnson Matthey.82

Subaru: The Japanese car manufacturer Subaru is a customer of Johnson Matthey.83

Suzuki: The Japanese car manufacturer Suzuki is a customer of Johnson Matthey.84

Toyota: The Japanese car manufacturer Toyota is buying platinum group metals directly from Anglo Platinum.85 Toyota is a major shareholder of the Japanese catalyst company Cataler, which supplies catalysts to Toyota.86 Toyota also is a principal customer of Johnson Matthey.87 Toyota was present at the 2007 Roundtable on Sustainable Platinum Group Metals.

BASF supplies catalysts to virtually every major car and truck manufacturer in the world, probably including most of the manufacturers mentioned above.88

2.9 Conclusions

All six European car brands researched in this report are using Johnson Matthey auto catalysts. Moreover, Volkswagen, Renault, LandRover, Volvo and Fiat are all principal customers of Johnson Matthey.89 BASF supplies catalysts to virtually every major car and truck manufacturer in the world, probably including most or all of the brands mentioned.90 And it is very likely that Umicore is also supplying catalysts to most of these brands.

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As each car manufacturer seems to purchase auto catalysts from various suppliers - depending on the model - it is difficult to identify the mine from which the platinum in a specific auto catalyst is coming. But as all three main manufacturers of auto catalysts purchase platinum metals directly from AngloPlatinum, each car could potentially contain platinum metals from the AngloPlatinum mines.

It is hard to say with 100% certainty that the platinum in a certain auto catalyst originates from the AngloPlatinum mine in South Africa. Car manufacturers usually do not have this information, and if they have they are not willing to share this information. Most car manufacturers are also not providing information on the supplier of their auto catalysts. All information they are willing to share they usually put on their website.91

However, AngloPlatinum is contributing 42% of the world’s platinum supply. The European automotive industry is using 37% of the global platinum supply. All six selected car brands are principal customers of Johnson Matthey, which is the world’s leading distributor of platinum group metals and the sole marketing agent for AngloPlatinum. Some of them are also customer of at least one of the other two major catalyst manufacturers, BASF Catalysts and Umicore. These are both also purchasing platinum from AngloPlatinum. The conclusion is that it is highly probable that a significant percentage of the cars manufactured under each of the selected brands contains platinum from AngloPlatinum in its catalyst. This is especially true for diesel cars, which contain much more platinum than petrol cars.

All car manufacturers have extensive environmental and social policies. However, these policies do not contain a word about platinum. Social policies are mainly meant for their own factories, although they all also have a suppliers policy wherein they ask the suppliers to adhere to the same social and environmental standards.

91 Confirmed by a telephone conversation with Wouter Pronk of MilieuKontakt Oost-Europa, 6 March 2008.

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Appendix 1 References

54 E-Mail by Michelina Lauriola Maenza & Karin Gaedecke, Volkswagen AG, Wolfsburg, 10 March 2008.


56 E-mail by Jim Chirumbole (Director BASF Corporation USA), 10 March 2008.

57 A better catalyst for CNG vehicles, AutoblogGreen, 13 October 2007.


64 Annual Report 2006, Volkswagen, Wolfsburg, 2 March 2007.

65 Website Cataler (www.cataler.co.jp), Viewed in March 2008.


67 4 join Ford top suppliers list, Amy Wilson, Automotive News, Detroit, 19 June 2006.



70 Umicore reaches agreement to acquire the catalyst business of Delphi - Conference Call, Fair Disclosure Wire, 6 June 2007.




74 Annual report 2006, Ford Motor Company, Dearborn, 7 March 2007.


76 Annual Report 2006, Ford Motor Company, Dearborn, April 2007.





81 Auto emission breakthrough lifts palladium price, Automotive News, Detroit, 2 April 2004.





86 Website Cataler (www.cataler.co.jp), Viewed in March 2008.





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