Ever wonder what really happens to your catalytic converters after you sell them? Most sellers know who picks them up—but very few understand the full journey those converters take through the supply chain. Ed and Rich break down the five key segments of the converter recycling ecosystem, from the shop floor all the way to global refiners. If you’re in the automotive, scrap, or recycling business, this deep dive is essential viewing. 

 

1. The Sellers – Where It All Begins

The first segment is the sellers—auto repair shops, dismantlers, and scrap yards that generate used catalytic converters through daily operations. 

There are an estimated 125,000+ sellers in the U.S. alone. Some sell by the piece to road buyers, while higher-volume shops may build relationships with collectors to move converters in bulk. 

But this is just the first stop on the journey. 

 

2. The Collectors – From Shops to Processors

Next in line are the collectors—companies that buy converters from sellers, aggregate inventory, and either process it in-house or resell to processors. 

Rich notes there are roughly 2,500 collector businesses across the U.S., a big step down from the number of sellers. Some collectors operate as both buyers and processors, depending on their equipment and infrastructure. 

 

3. The Processors – Decanning & Monolith Extraction

Processors remove the ceramic monolith (the honeycomb structure containing the precious metals) from inside the steel converter can. This process is called decanning. 

• The monolith is crushed into powder 

• Material is bagged and sent to a smelter 

• Only about 50 companies in the U.S. operate as true processors 

This stage is critical, as it prepares the material for lab-grade analysis and efficient metal recovery. 

 

4. The Smelters – Turning Powder into Ingots

From processors, the powdered material heads to a smelter, where it’s: 

• Sampled for lab testing 

• Heated and combined with flux and base metals 

• Poured into furnaces to form ingots 

• Separated into slag (waste) and metal-rich material 

There are only six smelters in North America that can handle this level of processing. Once complete, the resulting ingots contain 2–3% precious metal, ready for the next step. 

 

5. The Refiners – Extracting Pure PGMs

The fifth and final step is the refinery, where the real magic happens. 

• Base metals (copper, nickel, iron) are removed 

• A thick “sludge” remains, now 20–30% precious metals 

• The sludge is then dissolved in acid and chemically separated into: 

• Pure Platinum 

• Pure Palladium 

• Pure Rhodium 

Globally, there are only six refiners capable of isolating platinum group metals (PGMs) to this level of purity for reuse. 

 

From Your Shop to the Global Supply Chain 

Here’s a quick recap of the entire converter journey: 

Segment	Role	Estimated Companies
Sellers	Generate scrap converters	~125,000
Collectors	Aggregate and ship	~2,500
Processors	Decan and powder	~50
Smelters	Melt into ingots	~6
Refiners	Extract pure PGMs	~6 (worldwide)

This entire pipeline feeds directly back into the manufacturing of new converters—up to 70% of the PGMs in new converters come from recycled units. That’s a critical part of the circular economy and helps reduce carbon output by as much as 90% compared to mining. 

 

Why This Matters for Your Business 

Whether you sell in the can, bulk, or by assay, knowing what happens upstream can: 

• Help you negotiate smarter with buyers 

• Avoid being underpaid 

• Spot dishonest grading practices 

• Understand the true value chain of your scrap 

 

Want to Maximize Your Converter Revenue? 

Book a free 15-minute discovery call with Noble6.
We’ve helped hundreds of shops: 

• Move from category price to part number-based pricing 

• Begin decanning yourself and sell on assay results (not by the piece) 

• Build real partnerships in the converter industry 

 

Final Thoughts 

Recycling catalytic converters isn’t just a side hustle—it’s a sophisticated global industry with tight margins, few players, and high stakes. Ed and Rich are here to demystify it and help your business make better, more informed decisions.