Silver is a natural deposit in the Earth’s crust that we mine to use in jewelry, trading precious metals, vehicles, electronics, and even solar energy. Silver and green technology use and demand have risen in recent years with the growing need for more sustainable options than fossil fuels. It is a highly conductive and malleable material, making it perfect for use in electronics. As the world changes to be more electric, the use of silver in solar panels and electric vehicles is on the rise, leading to industrial applications being 55% of the global silver demand. With the increase in demand for silver, experts are projecting a 9% increase in 2024 alone in industrial use.
Silver’s Part in the Federal Sustainability Plan
President Biden established the Federal Sustainability Plan in 2021 to reduce the carbon footprint and improve the clean energy use of the United States. Some of the plan’s primary goals are to produce 100% zero-emission vehicles by 2035 and 100% carbon pollution-free electricity by 2030. Because of silver’s use in solar panels and electric cars, its demand has been quickly growing since the plan’s establishment. According to the Silver Institute: World Silver Survey of 2024, industrial silver use hit a record high of 654 million ounces in 2023, an 11% jump from 2022. It is expected to increase steadily through 2030.
The Use of Silver in Solar Panels
Silver is used as a paste in solar panels to capture the electrons from sunlight using its high conductivity properties. It is also ideal for thermal efficiency and is within optimal reflectivity parameters for solar panel use. Each solar panel utilizes an average of 111 milligrams (estimated) of silver. With millions of solar panels being installed throughout the country in the last few years, the use of silver has steadily increased in this industry. The Silver Institute’s 2024 World Silver Survey reports that in 2023, 193.5 million ounces of silver were used in solar panels. BloombergNEF expects the global solar industry to grow at least another 32% by the end of 2024. Provided that the Federal Sustainability Plan efforts continue once Biden is out of office, it is reasonable to assume that the silver used in the solar industry will continue to grow.
Today’s engineers and metal experts will also have more funding to make the use of silver more efficient, which will help with the demand. “The amount of silver needed to produce conductive silver paste for the front and back of most PV cells may be almost halved, from an average of 130 mg per cell in 2016 to approximately 65 mg by 2028, according to the Role of Silver in the Green Revolution report published by CRU Consulting – a division of CRU International Limited – on behalf of the Silver Institute.” As technology advances, the demand for silver for solar panel use may decrease, making the market overall more stable.
The Use of Silver in Electric Vehicles
You’ll find silver being used in multiple components within electric vehicles (EVs) and combustion vehicles alike: inside the glass, fuses, switches, relays, brakes, alert systems, and even airbag deployment. It is lightweight, malleable, strong, and highly conductive, making it an ideal material for EVs. In a traditional combustion engine vehicle, there is an average of 15-28 grams of silver per car. The use is a bit higher for hybrids at 18-34 grams per car. Electric vehicles have even more, with 25-50 grams per car. Silver will likely have even higher demand in the coming years if EVs become the new standard vehicle globally per the International Green Initiative. Additionally, silver is used in the charging stations for EVs, of which 28 million are expected to be built by 2030.
Silver’s use in electronics doesn’t end once it’s made into a car part or solar panel, though. The silver can be recovered and recycled once these electronics can no longer be used. This reduces the need for mining new silver for electronics and creates a more stable supply chain. E-waste is detrimental to the environment, so recycling as much of it as possible is vital to minimize the waste.
The Economic Impact of Silver Demand Increases
The drive for a greener future may lead to a significant rise in the demand for silver for industrial use. This rise will potentially increase the cost of silver and drive up the premiums.
In the meantime, watch the spot price of silver very closely and take note of increases in electric vehicles and solar panels in the United States especially. The change will be gradual, so silver investments may grow gradually as well over the next decade while the world shifts to using more renewable sources of energy and transportation.
