Catalytic converter theft has been on the rise in recent years. Catalytic converters contain precious metals like platinum, palladium and rhodium that can be extracted and sold for high prices. This has made catalytic converters an increasingly common target for thieves looking to make some quick cash. But what exactly do thieves do with the catalytic converters after they are stolen? Here is an overview of the fate of stolen catalytic converters.
Why Do Thieves Target Catalytic Converters?
Catalytic converters help reduce the toxic gases emitted from a vehicle’s exhaust. They do this by using precious metals like platinum, palladium and rhodium as catalysts to trigger chemical reactions that convert harmful compounds into less toxic gases.
These precious metals make catalytic converters attractive targets for thieves for a few key reasons:
– High value – Rhodium is currently worth over $14,000 per ounce, palladium over $2,000 per ounce and platinum around $1,000 per ounce. Just a few grams of these metals extracted from a catalytic converter can be worth a lot of money.
– Easy to steal – Catalytic converters are located on the underside of vehicles and can often be stolen in just minutes using a battery-powered reciprocating saw. No special tools or advanced skills are required.
– Hard to track – Catalytic converters do not have serial numbers, so once stolen they are very difficult to trace back to the original vehicle owner. This makes disposing of them easier for thieves.
With the high value, accessibility and lack of traceability, it’s no surprise catalytic converter theft has surged in many areas. Thieves can easily slide under a vehicle, cut out the converter and sell it to make a quick profit. But what happens after they are stolen?
How Do Thieves Extract Precious Metals?
Once thieves have stolen catalytic converters, their next step is extracting the valuable precious metals inside. This involves a few different processes:
Cutting and Dismantling
Thieves will first cut open the metal exterior housing of the catalytic converter to access the interior substrate. This ceramic honeycomb-like substrate is coated with the precious metals.
Manual Extraction
For small-scale extractions, thieves may manually grind down and process the catalyst-coated substrate to collect the precious metals. This can be done using household tools like hammers and grinders. The crushed substrate is then chemically processed or smelted to separate and collect the metals.
Large Scale Processing
More sophisticated operations will send large batches of stolen catalytic converters to illicit precious metal recycling and extraction factories. These facilities use industrial equipment like smelters, leaching baths and precipitators to efficiently extract the platinum, palladium and rhodium from the substrate material.
This scaled-up processing allows thieves to maximize their profits from stolen catalytic converters. The precious metals can be extracted and refined into pure forms that are easier to sell.
How Do Thieves Sell the Precious Metals?
Once the platinum, palladium and rhodium have been extracted from the catalytic converters, thieves look to sell the precious metals for profit. This sees the metals fed into both legal and illegal channels, including:
Scrap Metal Yards
Thieves may sell to scrap metal recycling yards that will buy platinum, palladium and rhodium. These metals do not have serial numbers, so stolen materials can easily be mixed into legal recycling streams. However, many yards now require extensive paperwork for catalytic converter recycling to deter thieves.
Online Sales
Individuals and illegal processors may look to sell extracted precious metals directly through online platforms and marketplaces. This provides more anonymity but lower prices compared to selling in bulk to refineries or wholesalers.
Sales to Refineries
Larger scale processors work directly with precious metal refineries to sell them bulk quantities of platinum, palladium and rhodium extracted from stolen catalytic converters. This provides the highest profits but also carries more legal risks.
Organized Crime Networks
International crime networks are also involved in trafficking precious metals from stolen catalytic converters. The metals can be shipped abroad and sold into complex black market supply chains that are difficult to regulate.
Regardless of the specific monetization method, the key goal for thieves remains converting the stolen catalytic converters into cash as efficiently as possible. However, regulators are now implementing enhanced reporting, tracking and enforcement measures to help cut off thieves’ access to metal buyers.
Catalytic Converter Theft Statistics
Catalytic converter theft has surged across many countries as prices for precious metals like rhodium, platinum and palladium have skyrocketed. Some key statistics highlight the growing scale of this criminal activity:
United States
– Over 14,000 catalytic converter thefts reported nationally in 2020, up from around 3,400 in 2019 (National Insurance Crime Bureau)
– Average of over 2,200 catalytic converter thefts per month in 2021, up from an average of just 108 per month in 2018 (AAMVA)
– California, Illinois, Minnesota, Texas and Oregon have seen the highest rates of catalytic converter theft
Canada
– Over 2,000 catalytic converter thefts in Toronto alone in 2021, up from just 186 in 2020
– British Columbia saw over 5,000 catalytic converters stolen in 2021, with a 230% increase from 2020 to 2021
Australia
– Catalytic converter thefts doubled from around 550 in 2019 to over 1,100 in 2020
– South Australia was hit hardest, with over 500 converters stolen in the first five months of 2021
Germany
– Police reported over 3,300 catalytic converter thefts nationwide in 2020, nearly quadruple the number from 2018
– Rhineland-Palatinate and North Rhine-Westphalia have been worst affected with over 1,000 thefts each
Sweden
– Catalytic converter thefts rose from 463 cases in 2020 to over 2,300 cases in just the first 10 months of 2021
United Kingdom
– London saw over 2,000 catalytic converter thefts in 2021, up from just 171 in pre-pandemic 2019
– National Police Chiefs Council reported a six-fold increase in catalytic converter thefts from 2018 to 2020
These statistics demonstrate the rapid growth in catalytic converter theft in many regions driven by surging palladium, platinum and rhodium prices. As these precious metals remain highly valuable, thieves are increasingly targeting vehicles to steal and sell their catalytic converters.
Precious Metal Prices Catalyzing Theft
The key incentive and driver for the spike in catalytic converter theft has been the rising value of the precious metals they contain. Here is an overview of the soaring prices catalyzing catalytic converter theft:
Rhodium
– Rhodium has surged over 3,000% from around $575/oz in 2016 to current prices over $14,000/oz
– Now more valuable than gold, which is around $1,800/oz
– Limited global supply and soaring demand from automakers has driven prices
Palladium
– Palladium prices are around $2,000/oz today, up from under $500/oz in 2016
– Increased use in catalytic converters coupled with supply deficits has increased prices
– Outperformed gold with a 280% price surge over the past 5 years
Platinum
– Platinum prices have risen from around $900/oz in 2016 to current levels around $1,000/oz
– Lagging palladium and rhodium, but still up over 40% in 5 years
– Automotive demand and broader inflation has moved prices higher
With rhodium prices now exceeding $14,000 per ounce – more than 8 times the price of gold – catalytic converters have become an increasingly attractive target for thieves. Continue high values incentivize catalytic converter theft across regions.
Preventing Catalytic Converter Theft
With catalytic converter theft still rampant, vehicle owners, businesses and regulators are taking steps to try to protect against theft and disrupt the black-market trade in stolen converters. Some protective measures include:
Etching VIN Numbers
Etching a vehicle’s unique VIN number onto the catalytic converter helps track stolen converters and prosecute thieves if recovered. However, professional theft operations may still remove or obscure etched markings.
Welding Barriers
Barriers welded over the converter make it harder for thieves to access and cut it out. But determined thieves can still cut through welds given time and portable tools.
Guards and Plates
Guards and protective plates can shield the converter, slowing down thieves. But they can still be removed by thieves carrying battery powered saws.
Alarm Systems
Catalytic converter alarms detect vibration and heat from saws, triggering an audible alert to scare off thieves before they can complete the theft. This can be an effective deterrent.
Camera Systems
Security cameras in parking areas provide video evidence to identify thieves. However, many thieves conceal their identities and license plates.
Restricted Buying and Selling
Legislation restricting scrap metal buying and stricter catalytic converter recycling regulations disrupt thieves’ ability to monetize stolen converters. But policing black market channels remains challenging.
Vehicle owners have an assortment of options to improve catalytic converter security. However, professional theft operations can still overpower many deterrents given time and portable tools. Ultimately, reducing incentives via regulatory crackdowns, metal recycling restrictions and precious metal market interventions may prove the most effective long-term prevention.
Conclusion
Catalytic converter theft has rapidly accelerated across many countries, driven by surging rhodium, palladium and platinum prices. Once stolen, thieves look to extract and monetize these valuable precious metals through various black market channels, scrap yards and precious metal refiners. While vehicle owners have implemented deterrents, theft remains rampant as high metal values continue incentivizing criminal activity. Cutting off thieves’ monetization avenues by tightening regulatory loopholes, increasing recycling oversight and stabilizing precious metal pricing will be key to getting this illegal trade under control.