by MAURA KELLER
A rash of catalytic converter thefts have been widely reported across the country in recent months. The driving force?
Catalytic converters contain a significant amount of very valuable precious metals. Some of these metals, like platinum, are currently comparable in price to gold as a commodity. Because of the rare metals that are inside of them, catalytic converters can be worth from several hundred to several thousands of dollars. According to the Institute of Scrap Recycling Industries (ISRI), thieves target all types of vehicles and a single stolen catalytic converter can garner anywhere from $50 up to $875, depending on its type and precious metals content.
State Farm recently put together a report on catalytic converter thefts from an insurance perspective. According to State Farm claims data, in the 12 month period comprised by the second half of 2020 and the first half of 2021 (from July 2020 to June 2021), the theft of catalytic converters grew close to 293 percent nationwide, in terms of number of claims filed, compared to the 12 months prior.
During the most recent 12 month period, there were more than 18,000 of these parts stolen and reported by State Farm customers, compared to the slightly above 4,500 in the previous 12 month period. Catalytic converters are part of the exhaust system and help reduce the contaminants emitted by it.
Cliff Hope, senior account manager at PMR Inc., said that in his opinion there are two main factors driving catalytic converter thefts. First, rising precious metal prices make these cores considerably more valuable as a recycled item. For example, only three years ago the average recycled value of a converter was $50 to $60 dollars. Whereas in recent months the average value was more than $300 per unit.
PMR is a privately owned catalytic converter processor and has been in business for 25 years. The company offers its suppliers a full range of services as they relate to recycling catalytic converters. PMR is one of the last stops for converters to be recycled.“The second factor that has driven thefts is easily accessible online information that offers guides to the recycled value of converters,” Hope said. “While companies like ourselves only offer such information to properly vetted suppliers, other less reputable sources have profited by selling information about converters to anyone willing to pay monthly fees for access.”
“Auto recyclers, and metal yards that dismantle end-of-life cars and light-duty trucks are able to send material to us for recycling by means of toll refining,” Hope said. Services include processing converters to the point of pre-smelting assay – which includes precise evaluation of the precious metal content in a given shipment/lot of converters and are able to sell those precious metals in future markets for suppliers.
HomeTowne Auto Repair & Tire in Woodbridge, Virginia, has received a number of cars that had their catalytic converters stolen. HomeTowne Auto Repair & Tire co-owner ST Billingsley said because they are made with expensive metals – platinum, palladium and rhodium – these parts are targeted by thieves, who tend to steal from multiple cars in commuter lots.
“It has become a bit difficult for auto repair shops to recycle catalytic converters, because we need to start keeping documentation about where a catalytic converter is coming from,” Billingsley said.
The impact of these increased converter thefts are not significant to the recycling industry as a whole. As Hope pointed out, companies like PMR only work with legitimate recyclers who are sourcing material from end-of-life vehicles and cars/light trucks bought at auction for parts.
“While converter theft is an issue, the numbers of stolen units don’t make up even a fraction of the millions of converters recycled annually in North America and the rest of the world,” Hope said. “The real impact that converter theft is having on some recyclers depends on state and municipal laws and regulations being developed and implemented surrounding the sale of scrap converters.”
As Hope explained, for now there is quite a patchwork of regulations that in some states/counties have severely restricted the sale of converters to recyclers from the general public.
“While this is a politically expedient solution, all it really does is drive the sale of converters to illegitimate buyers or has the general public travelling to states or counties that don’t have the same restrictions,” Hope said. “Once again this type of consequence has limited impact on the overall converter recycling industry.”
Hope advised that recyclers that are running legitimate businesses should be recording information from people selling them converters and asking for the vehicle registrations that the converters have come from to prove proper ownership. Or sellers should have a work order from a mechanic stating the converter was removed from their car. PMR offers recyclers electronic means of identification that can assist with confirming make and manufacturer of a scrap converter while keeping a photo record that can be adapted to responsible sourcing practices.
“If someone is not able to prove ownership of the vehicle a converter came from or does not participate in legitimate automotive recycling, the units should not be purchased and the authorities notified of any suspicious activity,” Hope said.
Nearly 20 years ago, Brad Rudover, partner at Scrap University and president of CARI’s British Columbia chapter for 10 years, co-wrote a catalytic converter guide to explain the various grades and value so recyclers could remove them from vehicles instead of sending them through the shredder.
“Due to the high value materials, including platinum, palladium, and rhodium that are present in the catalyst biscuit, converters range in high scrap values, making them an easy money maker for thieves,” Rudover said. “Converter theft is just another blemish on our industry. Recyclers should stop buying them individually and only recover them from scrap vehicles with identifiable VIN. The recycling industry should take the initiative to make them a banned item to help reduce/eliminate theft.”
From the standpoint of legislation, until there is a nationally standardized practice, Hope said the patchwork of laws and regulations will not be overly effective in combating converter theft.
“Thieves looking to sell stolen material will either sell to illegitimate buyers or travel to states and counties that have fewer or no restrictions for the sale,” Hope said.
“Once again, from our point of view we will not process material from individuals that do not have a registered business. Our suppliers must sign terms that outline responsible sourcing practices and prove they have a place of business that is following recycling laws and guidelines.”
Restrictions aside, there will always be a need for the rare earth metals that are being reclaimed from catalytic converter recycling. And as Hope explained, recycling is one of the best ways to reduce carbon emissions and climate change and is considered an essential service.
“To that end and as consistent scrap legislation is introduced and enforced, converter thefts will be better managed over time,” Hope said. “We are offering resources to our suppliers that comply with state laws, assist in identifying converter types and only work with legitimate recyclers that are committed to the communities they serve.”
ISRI recommends that those within the recycling industry that are affected by catalytic converter metals recycling become familiar with laws governing catalytic converters in the states where they operate. “At the very least, when someone offers a catalytic converter for sale, conduct a reasonably diligent inquiry, based upon the seller, type and quantity of metal offered for sale, and other circumstances surrounding the transaction, to determine whether the person selling or delivering the metal has a legal right to do so,” ISRI advised.
Published in the February 2022 Edition