Rhodium is one of the rarest and most valuable metals in the world, known for its exceptional resistance to corrosion and high reflectivity. It plays a critical role in various industries, from automotive manufacturing to electronics and jewelry. Due to its scarcity and high demand, rhodium is often more expensive than gold or platinum.
This article covers key facts about rhodium including what it is, where it comes from, what rhodium is used for and why it is so valuable.
What is Rhodium?
Definition
Rhodium is rare and silvery-white metal that belongs to the platinum group metals (PGMs). This metal is highly valuable in processing many industries as it is resistant to corrosion, oxidation, and extreme heat.
Because it is highly reflective, rhodium is used as a protective coating. It helps keep jewelry and mirrors shiny. Rhodium also helps reduce harmful emissions from vehicles.
Supply and Production
Rhodium is one of the rarest precious metals. It’s annual global supply is 1.15 million ounces (32 tonnes) per year. To understand how small that is, imagine it fitting into a single semi-trailer truck.
Rhodium is mostly produced as a byproduct of platinum and nickel mining. South Africa supplies 85% of the world’s rhodium.
Major producers include:
- Sibanye Stillwater – 7% of production, contributing 22% of revenue
- Anglo Platinum – 7.5% of production, contributing 34% of revenue
- Impala Platinum – 6.5% of production, contributing 25% of revenue
South Africa’s rhodium mines are going to be more deep and aging these days. Therefore, the production becomes more and more limited and inflexible. Even if demand rises, mining cannot quickly increase output to provide. There are also other difficulties related to energy shortages, labor strikes, and government rules restricting the supply. These factors cause rhodium prices to be unstable.
Where Does Rhodium Come From?
Rhodium comes mostly from mining platinum, nickel, and copper. South Africa provides over 80% of it, with smaller amounts from Russia, Canada, and Zimbabwe.
Getting rhodium is difficult because it is found in very small amounts in other metal ores. It is extremely hard to find, with only about 0.000037 parts per million in the Earth’s crust.
High demand for rhodium has increased the price of it to be the most valuable metal in the world.
What Rhodium Is Used For?
Rhodium has a wide range of industrial applications due to its unique properties. Below are some of the most significant uses of this precious metal.
Automotive Catalytic Converters
Rhodium is used in automotive catalytic converters to reduce harmful emissions. It can break down nitrogen oxides (NOx) into nitrogen and oxygen.
Rhodium is effective because it resists corrosion and can withstand high heat. To achieve the highest result, it should be used with platinum and palladium.
This makes vehicles more eco-friendly. US, Europe, China, and India have stricter emission rules, which drive the demand up. As a result, the price has increase significantly in recent years.
Glass Production
To make make high-quality glass, rhodium is very necessary. Especially optical and LCD screens, rhodium coats glass molds to make them stronger, resist heat, and rust-proof. This gives a clearer and more precise glass without any flaws.
Rhodium also reduces friction between the mold and melted glass. This makes molds last longer and reduce the money spend of maintenance. Its high melting point and toughness make it a key material in glass manufacturing.
Electrical Contacts
Rhodium is often used in electrical connectors and switches. It conducts electricity well and does not wear out easily. It also prevents oxidation, helping devices last longer.
Many industries depend on rhodium-plated contacts. Aerospace, telecommunications, and automotive sectors use them for reliable performance, even in tough conditions.
Jewelry
Rhodium plating makes white gold and silver jewelry shinier and stronger. It creates a bright, reflective finish and protects against scratches and tarnish.
Therefore, many luxury brands use rhodium to keep their jewelry looking beautiful over time. Even sensitive skin can use products with rhodium plating as it can prevent skin irriation.
Although Rhodium has exorbitant prices, it is still extremely important in many industries due to its superior value.
Why is Rhodium So Valuable?
Rhodium is valuable because it is extremely rare and needed for many industries. Its price also changes constantly. The annual supply is small, and no mines produce only rhodium. This makes it one of the most expensive metals in the world.
The automotive industry uses most of the rhodium. It is essential for catalytic converters, which reduce car pollution. As emission rules get stricter worldwide, demand keeps rising. However, since rhodium is only a byproduct of other metals, production cannot quickly increase.
Market shifts and disrupted in supply or the influences of global events can change the price of rhodium. When demand is high, or supply is low, rhodium prices can rise sharply. Sometimes, it even costs more than gold or platinum. This mix of rarity, necessity, and price swings makes rhodium highly valuable.
No matter where you use rhodium: cars, refining, or electronics, accurate testing is crucial. It helps you get the most value from your materials.
Ledoux & Company offers top-quality rhodium testing services. We help businesses recover metal and check quality. Our precise tests ensure you refine scrap efficiently and confirm purity.
With decades of experience, we deliver reliable results that meet industry standards. Trust Ledoux & Company for expert analysis. Get the most from your rhodium investments.
Partner with Ledoux for Reliable Rhodium Analysis
Rhodium is a rare and valuable metal, and knowing what rhodium is used for is essential. It plays a key role in catalytic converters to reduce vehicle emissions, strengthens and enhances the shine of jewelry, and improves the durability of electrical components. It is also used in mirrors, plating, industrial coatings, and medical and chemical applications.
If your business uses rhodium, accurate testing is a must. Partner with Ledoux & Company for expert rhodium analysis and industry-leading services to maximize your investment.
