The surge in platinum group metal (PGM) prices, particularly platinum, palladium, and rhodium, has contributed to an alarming increase in catalytic converter thefts across the U.S. While the federal government is working to combat this issue, proposed legislation intended to curb the theft may have unintended consequences for the recycling industry.
The Senate is currently reviewing amendments to the “Preventing Auto Recycling Theft Act” (PART Act), which introduces measures aimed at tracking and regulating the recycling of PGMs. These metals are critical components in catalytic converters, which help reduce harmful emissions from gasoline and diesel vehicles.
However, the proposed amendments, which include new traceability requirements, have raised concerns within the recycling sector. Key industry groups, including the Recycled Materials Association (ReMA) and the International Precious Metals Institute (IPMI), have voiced strong opposition, warning that the measures could disrupt recycling operations.
Robin Wiener, president of ReMA, and Larry Drummond, executive director of IPMI, expressed these concerns in a joint letter to Congress. “While we share the goal of preventing catalytic converter theft, we believe the amendments as written could negatively impact the recycling industry. We’ve been working closely with stakeholders to refine the PART Act to better achieve its objectives,” they wrote.
Their primary concern is that the new regulations could reduce the supply of raw materials available for U.S. smelters, which rely on recycled materials for about 30% of their inputs. In the letter, Wiener and Drummond pointed out that U.S. auto recyclers process over 30 million used catalytic converters annually, returning $3 billion in precious metals to the manufacturing supply chain. These metals are essential for a wide array of industries, from biomedical devices to new catalytic converters.
Jonathan Butler, president of IPMI, emphasized the importance of the recycling industry in supporting the circular economy. “Our industry plays a vital role in recovering and reusing precious metals. Any disruption to this process would have far-reaching consequences, not only for the automotive industry but also for technology and other sectors,” Butler told Kitco News. He urged lawmakers to focus on theft prevention without placing undue burdens on recyclers.
Although catalytic converter thefts have declined since mid-2023, more than 26,000 incidents were reported last year. ReMA and IPMI have been working with lawmakers and law enforcement agencies to tackle this issue, suggesting practical measures such as limiting purchase points, mandating traceable payment methods, and clearly defining who is legally allowed to possess detached catalytic converters.
To support these efforts, the industry has also expanded the capabilities of ScrapTheftAlert.com, a tool designed to help law enforcement track and recover stolen materials by enabling real-time collaboration with the recycling sector.
The timing of the debate comes as the PGM market faces a significant supply shortfall. According to the World Platinum Investment Council (WPIC), the platinum market is expected to see a one-million-ounce deficit this year, making recycled metals even more essential. WPIC’s second-quarter trends report noted a modest 2% increase in recycling this year, with signs that the autocatalyst market is beginning to stabilize after two years of disruption.
As the discussion around the PART Act continues, the industry is calling for a balanced approach that addresses theft while ensuring the continued flow of critical materials into the U.S. economy.
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