Morning Bites

🚗 The European Commission has proposed easing the 2035 ban on the sale of new ICE-containing cars, shifting the target from vehicles having zero emissions to a 90% reduction in CO₂ from 2021 levels, Reuters reports. This proposal still requires approval by the EU Parliament and member states, but could effectively leave room for further production of local hybrid (PHEV/HEV/REEV) cars

In our view, the proposal reflects ongoing debates on softening or stretching the transition timeline, rather than a reversal toward ICEs. The full ban is unlikely to be cancelled, with a delay or more flexible approach seeming more realistic

Although the EU accounts for ~20% of global Pd and Pt autocatalyst demand, we do not expect a material effect on market fundamentals in the near term. However, the policy retreat is overall positive for sentiment on PGMs, we believe

#PGMs