First, it was the coronavirus pandemic, then the semiconductor shortage. Now, Nissan is wrestling with a surge in the prices of precious metals that threatens to derail the global car industry’s rebound from Covid-19.

The steep rise in the prices of metals such as rhodium and palladium, which are critical components in catalytic converters for petrol and hybrid vehicles, is expected to cost the global industry $48bn this year, Citigroup estimates. That compares with $18bn in 2019, which squeezed industry cash flows 15 per cent.

“[In addition to the coronavirus crisis and the global chip shortage,] the third risk which is coming in front of us is raw materials, especially the precious metals,” Ashwani Gupta, Nissan’s chief operating officer, said in an interview. “That’s a key point for us as to how we are going to manage that.”