Upcoming Euro 7 and China 7 emissions standards, effective 2026-2027, are anchoring rhodium demand by requiring higher PGM loadings in gasoline three-way catalysts. These stringent standards require rhodium to reduce NOx to near-zero levels - an application where it remains irreplaceable.
China 7 standards, in particular, are expected to require significant increases in rhodium loading per vehicle, offsetting gradual ICE production decline. Enforcement across China, India, and Europe means each new gasoline or hybrid vehicle will contain more rhodium than previous models.
Non-automotive demand from electronics, data storage, and chemical processing adds competition for limited supply. AI-linked data storage demand for hard drive heads is growing rapidly. The regulatory demand support complicates the Heraeus forecast of a small 2026 surplus.