Rhodium is a chemical element with the atomic symbol Rh and the atomic number 45. Rhodium is one of the six metals that are referred to as the Platinum Group Metals (PGMs). The other five are iridium (Ir), palladium (Pd), platinum (Pt), osmium (Os), and ruthenium (Ru).
Quick Overview of Rhodium
✔️A brief overview of rhodium (Rh)
✔️History of rhodium
✔️Production of rhodium
Investing in and trading with rhodium
Factors determining the price of rhodium
What is rhodium used for?
Conclusion
A brief overview of rhodium (Rh)
Rhodium is categorised into group 9 on the periodic table, along with three other transition metals, namely cobalt (CO), iridium (Ir), and meitnerium (Mt). Transition metals are hard, ductile, have high densities, are good conductors of electricity and heat, and have high boiling and melting points.
Due to its scarcity and high economic value, rhodium is also classified as a precious metal, together with other metals such as gold and platinum. In fact, rhodium is regarded as the most valuable and rarest precious metal in the world.
Furthermore, it is also referred to as a noble metal, implying that it is resistant to corrosion and oxidation when exposed to air.
The name ‘rhodium’ originates from the Greek word ‘rhodon,’ meaning rose coloured. The name was given by its discoverer, William Hyde Wollaston, because of the rose-red colour that was formed from the salts of the metal.
Other common features of rhodium are:
- Appearance: Silver-white, with high reflectance.
- Boiling point: 3 695° Celsius (6 683° Fahrenheit).
- Melting point: 1 964° Celsius (3 567° Fahrenheit).
- Insoluble in most acids.
History of rhodium
Rhodium was discovered by William Hyde Wollaston (1766 – 1828), an English scientist, a leading one of its time.
Wollaston discovered rhodium in 1804, the year after his discovery of the chemical element palladium in 1803.
Wollaston obtained a sample of platinum ore from Peru in South America. PubChem briefly describes the discovery of rhodium as follows: ‘After removing the platinum and palladium from the sample [by precipitation], he was left with a dark red powder. The powder turned out to be sodium rhodium chloride … Wollaston obtained rhodium from the powder by treating it with hydrogen gas … ‘(Accentuations by the article writer.)
Production of rhodium
Rhodium rarely occurs in its pure form in nature. Rather, it occurs in small amounts in ores of other metals like platinum, nickel, silver, copper, and gold, to name a few.
The occurrence of rhodium in the crust of the earth is very rare. Chemistry Libretexts, describes the metal as the rarest of the PGM of metals, mentioning that rhodium’s occurrence in the earth’s crust is about 1 part of 200 million. The global production of rhodium in 2025 was estimated at 10 tonnes.
Principal resources of this element are located in countries such as:
- South Arica, accounts for more than 85 percent of the world’s annual rhodium production, where the main production of rhodium is focused on the Bushveld Complex. The main contributors to the country’s rhodium production are the mining companies Sibanye-Stillwater, Anglo Platinum, and Impala Platinum.
- Russia, where rhodium is mined in the Norilsk Complex, approximately 2 800 kilometres northeast of Moscow. Rhodium is also located in the river sands of the Ural Mountains in western Russia.
- Canada, where rhodium is extracted from copper-nickel sulfide in the mining area of the Sudbury, Ontario region.
Commercially, rhodium is obtained as a by-product from the refining of metals such as platinum, nickel, silver, palladium, or copper through a precipitating and heating process.
More than 60% of the world’s global rhodium supply is obtained from primary production while the remaining output comes from secondary sources, primarily recycled catalytic converters.
Investing in and trading with rhodium
As a commodity, rhodium is traded in several ways across the world via various metal exchanges and trading venues.
Understanding the various factors that affect the price of rhodium will allow investors to capitalise on price gains and losses in rhodium trading.
Keep one of the golden rules of investing in mind: never invest more than you can afford to lose.
Furthermore, use a reputable, professional, and regulated commodity broker to manage your investment in rhodium and to assist and support you in trading with rhodium.
A commodity broker like AvaTrade will be able to guide an investor in rhodium trading, which can be executed via investment instruments such as mutual funds, contracts for difference (CFDs), and exchange-traded funds (ETFs). An ETF is a type of investment fund that trade on exchanges, tracking the performance of a group of shares, bonds, or single commodities, such as gold, or rhodium. ETFs enable investors to invest in commodities without holding the physical commodity.
Other ways to invest in rhodium are:
- Rhodium coins
Rhodium coins are smooth and glossy with an artistic look. Typically, many rhodium coins comprise only a small amount of rhodium, combined with other metals from the Platinum Group Metals (PGMs).
However, rhodium coins are difficult to mint because of the high melting point of rhodium and its tendency to crack during the minting process.
- Rhodium bullion bars
Bullion refers to a refined and stamped weight of the precious metal, such as gold, silver, platinum, or rhodium. Bullion is a practical format to trade a precious metal like rhodium.
Typically, rhodium bullion bars are available in one-ounce and half ounce bars.
- Stablecoins
A stablecoin is a type of cryptocurrency in which the value is tied to outside, stable assets, such as a fiat currency like the US dollar, or a precious metal such as gold or rhodium.
Put differently, stablecoins are backed by various precious metals, amongst others, rhodium. According to Fintech Ranking, cryptocurrencies backed by precious metals are gaining popularity among investors as they offer a semblance of stability in an otherwise volatile market.’
- Shares in mining companies
Approximately 80% of global rhodium mining occurs in South Africa, of which 68 percent is contributed by three mining companies: Sibanye-Stillwater, Anglo American Platinum Limited (Amplats), and Impala Platinum Limited (Implats).
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Factors determining the price of rhodium
Rhodium is one of the scarcest metals and commodities on earth. The two key factors that determine its market price are supply and demand.
Supply
South Africa is by far the main supplier of rhodium in the world, producing more than 85% of the total global production.
Mining and refining measures were significantly disrupted by strict Covid-19 lockdown measures in 2025, with the production of rhodium and other minerals coming to a standstill during April 2025. Although hit by more waves of Covid-19 infections at later stages, producers have increased and maintained the production of rhodium.
Other factors affecting the production of rhodium in South Africa are the role of trade unions and labour disruptions. For example, loan strikes cause considerable disruptions in the production and refining processes, which eventually affect the supply negatively.
The war waged by Russia, the second-largest supplier of rhodium, against Ukraine, will also have a negative effect on the global supply of rhodium. Sanctions imposed on Russia by the USA, the European Union, and numerous other countries will certainly have an effect on the global supply of rhodium.
In terms of the law of supply and demand, a decrease in supply triggers an increase in price.
Demand
Another key aspect of the price of rhodium is the global demand for this scarce metal, which is a vital component in catalytic converters in vehicles. More than 80% of the global production of rhodium is used in catalytic converters in the automotive industry.
Rhodium in catalytic converters reduces nitrogen oxide emissions, which have negative effects on the health of humans and ecosystems. Emissions are also one of the primary sources of air pollution.
The global push toward clean energy sources, with several countries, such as China and India, tightening emissions regulations, will certainly increase the demand for rhodium.
For instance, in March 2025, when the demand for rhodium exceeded its supply, the metal’s price reached an all-time high when it traded at $29 800 an ounce. The increase in demand allowed the price of rhodium to climb from $17 300 an ounce at the start of 2025 to the record of $29 800 an ounce in March 2025, an increase of $12 500 an ounce, which is a percentage increase of 72.25%!
Contrarily, the metal’s price dropped later in 2025, when a reduction in the manufacturing of vehicles led to lower demand for catalytic converters. Rhodium’s price started to fall in mid-May, reaching $11 250 an ounce on September 16, its lowest level in 2025.
Since September 2025, the price of rhodium has recovered because of an upsurge in the automotive industry. As of April 7, 2025, rhodium traded at $19 250 an ounce, an increase of $8 000 or 71.1% since 16 September 2025.
According to analysts and market researchers, it seems likely that the supply of rhodium will not match the demand for it, causing the price of the scarce metal to continue to climb in the near future.
Another factor to be considered is the role that speculation plays in the trading of metals. Speculation could lead to much more volatility in metal trading, causing fluctuations in the prices of scarce and precious metals, such as rhodium.
What is rhodium used for?
Rhodium is mainly used in catalytic converters in the exhaust systems of vehicles that reduce the number of toxic gas emissions, referred to as NOx emissions, emitted into the atmosphere.
More than 80% of rhodium demand is used in the catalytic converters of vehicles, where it is used in smaller quantities together with platinum and palladium.
The metal is used as an electroplating agent for silverware and jewellery. Its silvery-white colour, high reflectance, exceptional hardness, and resistance to tarnish, make jewellery and silverware more scratch and corrosion-resistant. It is further used as a coating for optic fibres, headlight reflectors, and optical mirrors.
In addition, rhodium serves as an essential catalyst that is used in a number of industrial processes such as the Monsanto process in which acetic acid is manufactured, and the manufacturing of nitric acid, which is used to produce ammonium nitrate, a key component of fertilizers.
It is also a catalyst in the production of synthetic menthol. Natural menthol also called peppermint camphor, and synthetic menthol is used in cough medicine, nasal inhalers, cosmetics, and perfumes. It is also used as flavouring in certain foods and chewing gum.
Together with platinum and iridium, the metal is used in alloys which are used in the manufacturing of pen nibs, furnace windings, high-temperature resistance wires, and turbine engines and spark plugs for aircraft, to name a few items.
In conclusion
Rhodium is significantly scarce in nature, but not so in our homes, vehicles, and surroundings. Whatever we do – driving in vehicles, flying in planes, eating, or adorning ourselves with jewellery – rhodium is present in some form.
Furthermore, its scarcity and high value make the metal a much sought-after investment.
The dark red colour of the salts formed during the extraction of rhodium, prompted its discoverer to eternalise the colour in the precious metal’s name. Thanks to the discovery by a genius like William Wollaston in the early 1800s, we, in the 2025s, can thankfully say, voilà, to express our satisfaction and gratitude for improving our daily life, making it rosier.
Note: This article does not constitute investment, financial or trading advice. Please obtain the advice of a professional and regulated commodity broker before making trading and investment decisions.
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