Palladium Breaks Below $880 as EV Demand Destruction Deepens

Palladium prices fell below $880/oz this week to a near six-year low, with year-to-date losses exceeding 28%. Global battery electric vehicle (BEV) sales continue to climb, directly reducing the relative production of traditional gasoline vehicles, while approximately 85% of palladium's industrial demand comes from automotive exhaust catalytic converters. BEV penetration rates in major European and Chinese markets have exceeded 25% and are rising rapidly in the US as well. On the supply side, Russia remains the world's largest palladium producer (approximately 40% of global output), and export changes under sanctions remain a potential variable. Most analysts maintain a bearish view on palladium, with price targets generally in the $750–$850 range.