THE PROBLEM
The Problem
It’s true. Rare earth metals are increasing in value due to the demand in making lithium ion batteries and other modern electronics. Since most of the global rare earth mines are controlled by the Chinese, it has given birth to another growing US industry, metals recycling.
While it sounds like a good plan to recapture metals like platinum, palladium and rhodium, the process to do so, is dirty, inefficient and harmful to the environment.
Let’s take a deeper look at the supply chain for manufacturing catalytic converters.
Original Equipment Manufacturers are mandated by the federal government to install a catalytic converter in every new vehicle sold. According to BMI research that’s over 90 million catalytic converters in 2018 alone!
Since platinum, palladium, rhodium, copper, nickel, cerium, iron, and manganese exits in every converter, it makes the automotive part very expensive. Aftermarket prices range from $300 to $3,000 and more for a single unit.
1.
Original Equipment Manufacturers are mandated by the federal government to install a catalytic converter in every new vehicle sold. According to BMI research that’s over 90 million in 2018 alone! Since platinum, palladium, rhodium, copper, nickel, cerium, iron, and manganese exits in every converter, it makes the automotive part very expensive. Aftermarket prices range from $300 to $3,000 and more for a single unit.
2.
As a result, and because of their value, used converters are collected buy mechanics, given to aggregators and eventually sold to a recycling facility.
It’s a highly dirty and inefficient process that does more harm than good to our environment.
3.
Next the metals are put through a smelting process that extracts trace amounts of metal from every converter. The problem is that the process of superheating metals involves vast amounts of energy. In addition, the byproduct is particulate matter emitted from smokestacks that may includes cancer causing arsenic, cadmium and mercury.
4.
The end product after smelting are metals formed into Ingots. These are purchased by OEM suppliers to make more catalytic converters. The auto manufacturers buy the converters and the cycle continues.
The industry has been doing business in the same way since the federal government passed the Clean Air Act of 1970!
Alquimista aims to disrupt the supply chain using modern and scalable chemistry. The result cuts costs to OEM’s and is safer for the environment.