Whether the sour metals market leads to future job losses remains to be seen. The initial focus will be on increasing efficiencies to lower expenses, said Heather McDowell, vice president of legal, environmental and government affairs.

“What’s happened is the basket price for palladium, plutonium, and rhodium has dropped 33% year on year from 2022 to 2023,” McDowell said.

The United States is a small palladium producer on the world stage, accounting for 7% of what’s available. Prices have slumped in the last two years as pallidum from elsewhere has flooded the global market, McDowell said.

Russia, which produces 40% of the world’s palladium supply, is a suspected cause for the surge in available palladium. Palladium is often a byproduct of nickel mining. Russian ranks third for global production of nickel. These critical minerals have been on a roller-coaster for pricing as buyers of Russian nickel shifted to other sources.

European Union countries have banned Russian nickel in response to Russia’s invasion of Ukraine, while battery production in China has increased nickel demand overall.

Other big nickel producing countries have ramped up production, which has led to a supply glut, according to analysis by the Oregon Group, a commodities trade analyst.

Beyond global supply, Sibanye Stillwater’s operations in Montana are still experiencing COVID-related challenges, namely a 48% reduction in used palladium available for recycling according to the company’s annual report released Tuesday.

The company blends recycled palladium with its mined Montana product at its smelter in Columbus. There has been a “COVID lag” on vehicle scrapping rates because of people driving less, which extends vehicle life. Used vehicle trade-ins are also down as the lending rates increase financing costs for new car purchases.

As Sibanye Stillwater looks for savings, the company is lobbying Congress for palladium to be included in a 10% production tax credit created by the Inflation Reduction Act of 2022.

The Internal Revenue Service is still establishing rules for the advanced manufacturing production tax credit. McDowell testified before Congress about the why palladium production should be covered by the new rules.

Production costs for Sibanye Stillwater’s operations in Montana are about the $700 million a year, McDowell said. The 10% tax credit would produce a $70 million savings.

McDowell said U.S. Sen Jon Tester, a Montana Democrat, is among nine members of Congress who have told the IRS it was the Senate’s intention that mined palladium qualify for the tax credit.