Why is Catalytic Converter Scrap So Valuable?

Catalytic converter scrap is an all-important resource in America today. They are always in high demand and short supply. Replacement prices range from $300 to a max of $3,770.

So why is this small, intricate piece of metal so significant? Why is catalytic converter scrap so valuable? Continue reading to learn all about the value of catalytic converters.

How a Catalytic Converter Works

Cars were made without catalytic converters before the 1970s. They had been used in other processes, like smokestacks, since the 1950s.

It wasn't until the Environmental Protection Agency (EPA) started cracking down on harmful emissions, however, that catalytic converters were adopted as a car manufacturing standard.

To know how catalytic converters work, it's important to know about chemical catalysts. A catalyst supercharges a chemical reaction without being used up in the process.

Catalytic converters transform toxic emissions into less harmful elements using a catalyst system. The converter grabs the noxious pollutants produced by the engine as it burns fuel. The emissions are "scrubbed" of most toxins before being released into the environment through the tailpipe.

Functions of a Catalytic Converter

Catalytic converters function as a vital commodity. Millions of people rely on them every day for:

• Smog and pollution reduction
• Lower emission temperatures
• Increase fuel economy
• Improve overall car efficiency
• Particle reduction in diesel engines

Over 90% of harmful emissions are eliminated by catalytic converters. These include carbon monoxide (CO), hydrocarbons (HC), and nitrogen oxides (NOx). These toxins are converted into less harmful CO2, water vapor, and nitrogen instead.

Types of Catalytic Converters

There are many different types of catalytic converters found in vehicles today, as emission standards and car manufacturing have evolved. Types of converters include:

• Steel
• Ceramic 
• Direct-fit
• Universal
• Manifold
• DOC catalyst
• High-flow
• Heavy metal
• OEM grade

U.S. catalytic converters must either be California Air Resource Board (CARB) compliant or EPA compliant. CARB converters have stricter standards than the EPA, and come with higher performance warranties.

Catalytic Converter Replacement

Just like other parts of an engine, catalytic converters are subject to wear and tear. They may need replacement during the lifespan of your car.

Early warning signs of catalytic converter replacement are:

• Check engine light
• Stalling or misfiring engine
• Jerky acceleration
• Decreased fuel efficiency
• Noxious exhaust
• Unusually hot undercarriage 

Catalytic converters are also vulnerable to thieves. Theft of these valuable auto parts has spiked from only 200 in 2018, to a whopping 4,000 in 2021.

Unless you've taken extra steps to secure it, your converter might get stolen before it needs a replacement. Thieves are so opportunistic for catalytic converters, they've even stolen some from food pantry trucks. 

Why are thieves targeting this simple but important mechanical part? It's not just the catalytic converter price alone.

Why Is Catalytic Converter Scrap So Valuable?

The catalyst process used to make emissions cleaner is only possible thanks to precious metals. Among other materials, catalytic converters contain:

• Rhodium
• Platinum
• Palladium

These metals have their own unique value, as well as being part of the platinum group metals (PGMs). PGMs are especially useful in catalytic processes, as they have many special properties:

• Wear-resistant
• Tarnish resistant
• Chemical resistant
• High ductility
• High strength
• Electric stability

PGMs are in high demand worldwide, and resource mining doesn't always meet demand. This makes them a valuable scrap for recycling. 

Catalytic converters are therefore a lucrative opportunity for thieves. They're small, generally found unsecured outside the car, and have a high recycling value.

Platinum price per ounce alone is over $900 USD. Palladium is around $1,900. Rhodium is one of the rarest and most expensive metals in the world, and an ounce is currently worth $15,500.

With anywhere between 5-20 grams of PGMs on average, thieves only need to quickly steal a few dozen catalytic converters for a decent payday. 

Why You Should Recycle Your Own Catalytic Converter(s)

Although thieves have taken advantage of the recycling system, you should still recycle your own (legitimate) parts. Not only does it reduce landfill waste, but it also eases the burden of precious metal mining.

Mining is often exploitive for both the environment and the workers that pull it from deep beneath the ground. Many workers risk damaging their health and their living areas with contamination, for comparatively little pay.

Current estimates show that around one-quarter of PGM supply comes from recycling. While substantial, it still means billions in precious metals are being wasted each year.

You may have only one defunct unit to recycle, or several to dispose of regularly because of commercial reasons, like auto repair. Either way, you can help the world a little more by recycling catalytic converters instead of tossing them into a bin.

As a bonus, you can also earn money from recycling. Catalytic converter prices vary, but you can get anywhere from $20-$200 on average per unit.

Where to Recycle Your Catalytic Converter Scrap

The best way to get the most from catalytic converter recycling is by taking it to a licensed processing center. These centers keep records to prove they follow state and federal compliance.

You won't have to worry about being scammed, or that you're selling your parts to shady dealers instead of legitimate recyclers. These recycling centers also refuse to profit from stolen catalyst converters. You can rest easy knowing your scrap will actually be recycled by licensed specialists.

How to Determine Catalytic Converter Price

The catalytic converter scrap price is determined through a process called grading. A licensed catalytic converters processing center has several criteria they use in their grading process:

• Materials
• Parts
• Type
• Condition
• Origin (foreign or domestic)
• Estimated PGM recovery
• Market prices

There are too many factors to determine your price at first glance. You may see anywhere between $20-$200 per unit.

There are also commercial and high-volume options, such as hedging and toll refining. Ultimately, the licensed professional you work with will give you a fair and honest analysis of how much your unit is worth on the current market. 

Are You Ready to Recycle Your Catalytic Converter?

Catalytic converters provide a valuable service to you, your car, and the environment. They reduce harmful emissions and improve your car's performance. They also provide valuable precious metals to recycle from scrap.

Are you ready to know how much your catalytic converter scrap is worth? Book now to get started, or contact us if you have questions!