Hybrids are often lumped in with the EV revolution, but for the rhodium market, they are internal combustion engines. Mild hybrids, full hybrids, and plug-in hybrids all require catalytic converters. In fact, due to the unique cold-start challenges of hybrid engines, they often require just as much—or more—rhodium than traditional ICE vehicles.
When assessing rhodium demand, the phrase "electrified vehicle" is dangerously misleading. You must separate pure battery EVs (which use zero rhodium) from the various flavors of hybrid vehicles (which all use rhodium).
It seems counterintuitive: if a hybrid engine runs less often than a standard petrol engine, shouldn't it produce fewer emissions and need less rhodium? In reality, the opposite is often true due to the physics of catalysis.
Catalytic converters only work efficiently when they are hot (above 250-300°C). In a standard petrol car, the engine turns on, heats up the exhaust, and stays hot for the duration of the trip.
In a hybrid vehicle, the engine frequently turns off (when coasting, stopping, or using the battery) and the catalytic converter cools down. When the engine abruptly kicks back on to provide acceleration, the catalyst is too cold to process the sudden spike in nitrogen oxides (NOx). This creates severe "cold start" emission failures under real-world testing.
To solve this, automakers use two strategies:
Toyota is the world's largest automaker, and its entire transition strategy relies on hybrids rather than pure BEVs.
Toyota sells approximately 3.5 million hybrid vehicles per year globally (roughly 40% of its total sales), including massive volume models like the RAV4 Hybrid, Camry Hybrid, and Prius. Every single one of these vehicles contains a sophisticated, rhodium-bearing three-way catalyst (often manufactured by Cataler, a Toyota joint venture).
Toyota's insistence on a "multi-pathway" approach—meaning they will continue building ICE and HEV vehicles for decades rather than rushing to 100% BEV—acts as a massive, structural floor for global rhodium demand. As long as Toyota dominates global auto sales with hybrids, rhodium demand will remain robust.
In Europe, Plug-in Hybrids have seen massive growth driven by corporate fleet tax incentives. On paper, PHEVs have ultra-low CO2 emissions. In reality, data from the ICCT shows that many fleet PHEVs are rarely plugged in; they are driven almost entirely using their petrol engines.
Because they must comply with extremely strict Euro 6d RDE emission limits while carrying the extra weight of a heavy battery, European PHEVs require highly advanced catalytic systems with substantial rhodium loadings. The shift from standard diesel vehicles (which use little to no rhodium) to petrol PHEVs in Europe has been a net positive for rhodium demand.
Yes. All hybrid vehicles (Mild, Full, and Plug-in) contain an internal combustion engine. Any vehicle with a petrol combustion engine requires a three-way catalytic converter to pass emission regulations, and rhodium is the essential metal for reducing NOx emissions in these converters.
Often, they use roughly the same amount or slightly more. Because hybrid engines turn on and off frequently, their catalytic converters cool down. To pass strict "cold start" emission tests when the engine abruptly turns back on, automakers must use highly active catalyst formulations with high rhodium density.
Toyota is the world's largest automaker and champions hybrid technology over pure battery EVs. They sell over 3.5 million hybrids a year. Because every hybrid requires a rhodium catalyst, Toyota's strategy guarantees a massive, sustained base of demand for rhodium globally for years to come.
An Electrically Heated Catalyst (EHC) uses electrical power from a hybrid's battery to pre-heat the catalytic converter before the petrol engine turns on. This ensures the rhodium is instantly hot enough to process NOx emissions. These advanced systems are key to helping hybrids pass Euro 7 and China VI standards.
No. While they can drive short distances on electricity, they still contain a full petrol engine for long trips. Therefore, they must have a full catalytic converter system installed. A consumer buying a PHEV instead of a pure BEV represents preserved rhodium demand.
It is highly supportive. Market analysts who predict a collapse in rhodium prices often assume all new car growth will be pure battery EVs. The reality is that much of the transition is shifting toward hybrids—which keeps rhodium in the automotive supply chain and supports high prices.