Today, most cars that reportedly have a degree of self-driving capabilities are electric or hybrid rather than gas-powered. Electric Vehicles (EVs) and hybrid vehicles use various precious metals, including silver, gold, platinum, palladium, lithium, copper, cobalt, and more. According to Resources magazine, with the rise in demand for EVs and hybrids, demand for the precious metals needed to create them is also expected to rise.
The Future of Self-Driving Cars
Self-driving cars are a relatively new concept, and so far, no fully autonomous vehicles are available. The Society of Automotive Engineers (SAE) developed a six-level scale to determine how autonomous a car can be without human input.
As of 2024, only a handful of level 3 cars are available for consumer purchase: the Mercedes-Benz S-Class and EQS Sedans, and they are only allowed in California and Nevada because they’re the only states to have awarded the company the certification level for public use. In 2019, Audi announced a level 3 system called Traffic Jam Pilot in their new A8, but the lack of an approval process for level 3 prevented it from moving forward for public release.
There are a couple of different level 2 self-driving systems available for public and private use:
- Tesla: Self-Driving and Autopilot
- General Motors: Super Cruise
- Volkswagen Group: Traffic Jam Assist and Active Lane Assist with Stop & Go
- BMW: Driving Assistant Pro
- Ford: BlueCruise
- Hyundai Motor Group: Lane Following Assist, Smart Cruise Control, Highway Drive Assist
These systems are available in select models, most of which are only in newer vehicles from 2020 and newer.
While the self-driving car market is limited, technological advances and active research into fully autonomous vehicles are expected to expand the availability in the next few decades.
Precious Metals in Self-Driving Cars
Before calculating the amount of metal in self-driving cars, we need to categorize them as electric, hybrid, or gas. A Securing America’s Future Energy (SAFE) study found that 58% of vehicles currently equipped with autonomous functionalities are EVs, and 21% are hybrids. 0% of today’s self-driving cars run on internal combustion engines (ICE).
How Much Precious Metals Make Up Hybrid Cars
Platinum and silver are the most used precious metals in hybrid vehicles due to the platinum catalytic converter and silver-based electronic components. The catalytic converters contain about 3-7 grams of platinum, 2-7 grams of palladium, and 1-2 grams of rhodium. Approximately 18-34 grams of silver are used per hybrid vehicle. Hybrids contain only trace amounts of gold and palladium.
How Much Precious Metals Make Up Electric Cars
The amount of precious metals in electric vehicles is comparatively higher than in hybrids. EVs contain approximately 25-50 grams of silver per vehicle. In a hydrogen fuel cell, which is used in some models of EVs, platinum is used as a catalyst and contains approximately 10-20 grams per fuel cell vehicle. In a battery-powered car, the amount of platinum and palladium is negligible. Gold, which was more commonly used in the circuit boards of older vehicles, is seeing more use in EV electronics, with approximately 10-15 grams per vehicle.
The Effect of Self-Driving Car Demand on Precious Metals
The surge in self-driving cars can mean several different things for the precious metals markets. Here are a few possibilities to consider:
- Since silver is a common component of EVs and hybrids, demand for silver may increase, likely affecting its cost.
- Palladium is less common in EVs and hybrids, and the demand will likely continue to decline with the decline of ICE cars.
- Platinum and gold are difficult to gauge because it largely depends on which type of car is more likely to become widely used: EVs or hybrids. The EVs use more gold, and the hybrids use more platinum. Both are becoming increasingly popular, but it is a tough call which one will be the new go-to over ICE cars.
Technology is ever-changing in the automotive industry, so estimating what will happen in the next few years is tricky. Watch the market and automotive industry closely and consult an investment advisor to determine what you should do with your precious metals in response to market movements.
