Metal Prices Underscore Importance Of Litex Auto Emissions
26 January 2000
Skyrocketing Precious Metal Prices Underscore Importance Of Litex Auto Emissions Technology
Litex CDD Will Allow Auto Manufacturers to Meet New Emissions Standards
With Substantially Less Precious Metal in Catalytic Converters
SHERMAN OAKS, Calif., Jan. 26 -- With precious metal prices
rising like Internet stocks, a new technology being developed by Litex, Inc.
could wind up saving automobile manufacturers hundreds of millions of dollars
by reducing the amount of precious metal needed in a car's catalytic
converter.
"We are seeing incredible price increases for precious metals, with no
sign of slowing soon," said Dr. Leon Ekchian, president and CEO of Litex. "At
the same time, tougher federal regulatory standards are increasing the demand
for the precious metals that are used in automobile catalytic converters."
"In the face of those demands, innovative technology is necessary to solve
the emissions equation," Ekchian said. "Litex is pleased to offer a
technological solution that reduces the amount of precious metals needed in a
car's catalytic converter -- and thereby reduces the cost to the auto
industry."
Precious metals such as platinum, palladium and rhodium are used in
catalytic converters to reduce automotive exhaust emissions. Litex's patented
Corona Discharge Device (CDD(TM)), when installed in an automobile's exhaust
stream, helps the catalytic converter work more efficiently to reduce
hydrocarbons, carbon monoxide and oxides of nitrogen.
With tough new emissions standards about to take effect in the U.S. and
overseas, the demand for precious metals is rising significantly -- and prices
are rising accordingly.
For example, the price of palladium has risen from about $120 an ounce in
1997 to a current level of more than $450 an ounce. And, analysts are
predicting that the price will continue to rise significantly in 2000, as
demand outstrips world mining capacity and access to existing stockpiles,
primarily in Russia, is limited.
"Indeed, it could produce the kind of parabolic rise associated with
Internet stocks," said Prudential Investments portfolio manager Leigh Goering
in an analysis published in the Jan. 24 issue of Barron's. "With the Russians
limiting supply and with auto companies apparently committed to increasing
palladium use, we think palladium prices will go much higher during 2000."
The Litex technology would allow auto manufacturers to reduce the precious
metal loaded in a car's catalytic converter.
"This is a tremendous value proposition to the automotive industry,"
Ekchian said.
"The technology is available at low cost, and may actually reduce the cost
of a new vehicle by reducing up to 50 percent the amount of precious metals
necessary in the vehicle's catalytic converter," he said. "For example, for
larger passenger cars, light trucks and sports utility vehicles, net savings
with the use of the CDD are projected to exceed $150 per vehicle in meeting
the new Tier 2 standards.
"Unlike very expensive initiatives that are a long way from marketability,
the Litex CDD is available now, with proven results in reducing emissions at
low cost," Ekchian said. "We look forward to working with the auto industry
to bring these benefits to consumers as soon as possible."
In October, the Litex CDD won the First Place Award for Excellence at the
1999 Global Powertrain Conference, an international trade show in Stuttgart,
Germany.
The CDD, which is inserted into an automobile's exhaust system upstream
from the catalytic converter, is capable of reducing carbon monoxide emissions
more than 80 percent, and hydrocarbon and oxides of nitrogen emissions by more
than 50 percent, depending upon the sulfur content of the fuels involved,
which may range from 0 to more than 300 ppm. This should be of great
assistance to the auto and oil industries during the Tier 2 phase-in period.
The CDD's "self-cleaning" environment reduces sulfur poisoning while
prolonging the lifespan of the catalytic converter.
Utilizing technology that originated at the Lockheed Martin Corp. and
further developed by Litex, the CDD will be manufactured by Saturn Electronics
& Engineering, an Auburn Hills, Mich. supplier to the automotive industry. It
is currently available to auto manufacturers for evaluation. A number of auto
manufacturers and Tier 1 suppliers in the United States, Europe and Japan have
purchased prototypes for application development. The production version will
be available to automotive manufacturers this year. According to estimates
made by Litex, the volume price to automotive manufacturers will be less than
$100.
Backed by Brentwood Venture Capital and J.P. Morgan Investment Management
Inc., Litex, Inc. is an advanced venture capital-financed electronics company
established in August 1996 to develop and commercialize high-value products
that demonstrate strong market potential and offer cost-effective solutions to
complex industrial and consumer needs. The company is headquartered in
Sherman Oaks, Calif., and has satellite offices in Bloomfield Hills, Mich.,
and Cambridge, Mass.
More information about Litex, the CDD and non-thermal plasma technology is
available at the company's Web site at http://www.litexcorp.com, or by phoning the
company at (818) 817-7600.