In this insightful session, we are joined by Craig Ostroff, the Global Sales Director PGM Refining and Chemicals at BASF. Craig brings over 37 years of experience in the precious metals and chemical catalyst industry, sharing his journey from his early days at Engelhard to his current role at BASF.

Craig Ostroff’s Background and Experience

Craig Ostroff has been in the precious metals and chemical catalyst industry for 37 years. He started his career at Engelhard, where he gained significant experience with precious metals like platinum, rhodium, and aluminum. His extensive background provides a solid foundation for the insights he shares about the industry’s evolution.

Evolution of the Precious Metals Market

Over the past five years, the precious metals market has changed significantly. BASF underwent strategic reorganization and acquisitions, such as the Converse site, which enabled the company to handle increased demand and improve operational standards. These changes have transformed BASF into a more efficient and competitive player in the market.

Importance of Recycling Precious Metals

Recycling precious metals is crucial for the industry’s sustainability. Historically, only about 25% of the metal in new auto catalysts was recycled. By 2021, BASF managed to achieve a 50-60% recycling rate, demonstrating the potential for further improvement. Increasing recycling rates not only conserves resources but also reduces the environmental impact of mining new metals.

Impact of COVID-19 on the Industry

The COVID-19 pandemic significantly impacted the precious metals industry. New car production stalled due to chip shortages, leading to increased demand for recycled materials. Used car values rose, and the average vehicle life extended, affecting the availability of scrap materials. Collectors played a vital role during this time, ensuring a steady supply of materials for recycling.

Addressing Catalyst Theft and Legislative Challenges

Catalytic converter theft has become a significant issue in the industry. Legislative measures are being taken to combat this problem and streamline recycling processes. BASF and other stakeholders are actively working to influence federal legislation to prevent theft and ensure the continued viability of recycling catalytic converters.

Smelter Capacity and Market Dynamics

Maintaining full utilization of smelters is challenging in the current market dynamics. Economic sustainability and efficient recycling processes are crucial for future success. Increased competition from new smelters adds to the complexity, but BASF remains committed to making recycling economical and moving metals through the market efficiently.

Sustainability and Green Initiatives

BASF’s “Verdium” project is a groundbreaking initiative aimed at certifying and ensuring the traceability of recycled metals. Verdium represents a new standard in recycled metal, setting the bar for third-party audits in the PGM space based on mass balance.

Verdium: A Revolutionary Approach to Sustainability

What is Verdium?

Verdium is BASF’s groundbreaking method for recycled metals, establishing a new benchmark for third-party audits in the PGM (Platinum Group Metals) sector, utilizing mass balance principles. It signifies a substantial leap in the certification of recycled PGMs.

How is Verdium Different?

Verdium is elevating the standards for recycled PGM certifications, creating new opportunities for customers to enhance their sustainability efforts. Recognizing the urgent need for concrete sustainability advancements, BASF ECMS developed Verdium in close collaboration with customers. This ensures that Verdium is a verifiable, audited solution that helps customers make measurable progress towards their environmental goals.

Why Verdium is Impactful

One kilogram of Verdium results in a reduction of over thirty metric tons of carbon emissions. Recycling PGMs, as certified under Verdium, can reduce emissions by up to 97% compared to extracting primary materials. By offering verified, detailed documentation, Verdium provides businesses with the necessary metrics for carbon reduction. Verdium enables customers to make substantial, measurable advancements in their sustainability journey while promoting a circular economy that benefits our planet.

Future Outlook for the Precious Metals Industry

The future of the precious metals industry hinges on balancing economic viability, regulatory compliance, and sustainability. Government regulations, the growth of electric vehicles, and the continued emphasis on recycling will shape the industry’s direction. BASF’s long-term strategy includes ensuring a steady supply of metals without relying solely on foreign sources, emphasizing the importance of recycling.

Conclusion

Craig Ostroff’s insights at the IPMI Conference 2024 highlight the significant changes in the precious metals market, the critical role of recycling, and the impact of legislative changes. BASF’s innovative Verdium project exemplifies the company’s commitment to sustainability and the future of the industry. By focusing on recycling and green initiatives, BASF is leading the way towards a more sustainable and economically viable future.

Thank you for joining us in exploring the latest insights from the precious metals industry. For more in-depth articles and exclusive interviews, visit the rest of our blog. Don’t forget to subscribe to our YouTube channel for the latest videos and updates. Stay informed and ahead in the industry by subscribing today!