On January 20, 2025, President Trump signed the Unleashing American Energy Executive Order — and it’s already sending shockwaves through the auto recycling, scrap metal, and repair industries. In this episode of #Noble6Talks, we break down exactly what this means for recyclers, used car dealers, and catalytic converter processors.

No More EV Mandates: What That Means for Scrap Supply

One of the biggest takeaways from the order is the elimination of federal EV mandates. With fewer incentives to push electric vehicles, internal combustion engine (ICE) vehicles — including hybrids — are expected to remain dominant for the foreseeable future.

That shift means greater long-term demand for catalytic converters and the platinum group metals (PGMs) used in them. For recyclers and processors, that’s a bullish signal.

Relaxed Emissions Regulations = More Gas Vehicles

The order also removes EPA emissions waivers, allowing gas-powered cars to operate under fewer restrictions. States like California may no longer be able to enforce stricter-than-federal emissions standards, which could increase gas vehicle production and reduce regulatory burdens for automakers.

This means more ICE vehicles on the road, more catalytic converters being manufactured — and eventually, more end-of-life units for recyclers to process. Here’s how the catalytic converter recycling industry is preparing for the shift.

EV Subsidy Cuts and New EV Taxes

Trump’s Executive Order calls for the removal of the $7,500 federal EV tax credit and proposes a $1,000 tax on new EV sales. This move aims to level the playing field for gas-powered vehicles while addressing a gap in road repair funding — EVs don’t pay gas taxes.

Without the subsidy, EV adoption could slow, further extending the life cycle of ICE vehicles and strengthening the used gas vehicle market.

What This Means for Used Car Prices in 2025

With fewer EVs being pushed and gas cars getting a second wind, the team predicts:

• A rise in new car production

• More ICE vehicles entering the market

• Increased trade-ins, flooding the used car market

As a result, used car prices are expected to drop, and more vehicles will reach the end-of-life phase — funneling into salvage yards and recycling centers.

How This Affects the Catalytic Converter Market

A larger volume of end-of-life vehicles means more scrap catalytic converters entering the supply chain — something the industry has been craving after years of tight supply.

At the same time, new converter manufacturing will likely increase to meet demand from gas and hybrid vehicles, creating a price floor for PGMs like platinum, palladium, and rhodium. If you haven’t already, it’s worth reviewing how catalytic converter pricing shifted in 2024 — and what that might signal for the year ahead.

(Optional Bonus: For a deeper dive on metals, check out why palladium prices are surging.)

The team expects to see higher scrap supply and price stability by Q3 2025, though the full effect of this policy shift will take time to unfold.

Prepare Your Business for the Shift

Whether you’re a:

• Converter processor

• Used car dealer

• Repair shop

• Scrap metal recycler

Now is the time to adjust your strategy. With more vehicles in the pipeline and stronger demand for PGMs, it’s crucial to stay ahead of pricing shifts and supply availability.

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