https://moderninvesting.substack.com/p/challenging-the-ev-and-esg-narrativePlatinum Group Metals (PGMs) are likely the most under appreciated commodities in the world. Prices have dropped considerably over the last years, politically instability has risen and net short positions have reached a record high. Meanwhile the major PGM producers are down 75-80% from the highs.
Demand for PGMs is highly correlated with sales of ICEs and Hybrids. Hybrids require even more PGMs than ICEs, while EVs require basically none. So the question is how does the industry currently reacts to higher sales in ICEs and lower demand growth then expected for EVs? Well, producers such as Volkswagen, Mercedes, Ford, etc, are scaling back their ambitions in regards to the EV space.
