Nornickel seeks new market for palladium in EVs with catalyst for lithium‑sulphur batteries

Russia’s Nornickel said on Tuesday it aims to complete the development of a palladium-based catalyst for lithium-sulphur (Li-S) batteries within three years, potentially creating a major new source of demand for palladium in electric vehicles.

Li‑S batteries in theory offer higher energy density as well as significantly lower cost and weight than lithium-ion batteries currently used in most EVs. But they have so far failed to reach mass-market production due to their extremely limited service life.

The project by Nornickel – the world’s largest producer of palladium, accounting for some 40% of global output – is aimed at sharply extending the lifespan of Li-S batteries to more than 1,000 charging cycles.

“I think this is a three-year horizon for us to further refine the technology so that it can compete with existing solutions. Overall, lithium-sulphur technologies look quite promising in terms of energy density (driving range),” Nornickel vice president Vitaly Busko said.

If the technology proves successful, it would “open up huge new markets for palladium”, Nornickel said, estimating potential demand of at least 1.5 million ounces a year.

Nornickel this week opened a palladium laboratory in Moscow to develop new applications for palladium beyond autocatalysts for non-electric vehicles, which currently account for more than 80% of global demand.

The metals giant is investing $100 million in a program aimed at generating around 1.7 million troy ounces of new annual palladium demand by 2030 to 2035, to offset potential losses from rising EV adoption, and has already identified a near‑term commercial application in fibreglass production in China.

(By Anastasia Lyrchikova; Editing by Mark Trevelyan and Andrew Heavens)