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As the world pivots towards sustainable energy solutions, silver is emerging as a key pillar in the transition to a low-carbon economy. Silver’s unique properties make it indispensable in two of the most transformative technologies of our time: electric vehicles (EVs) and solar panels.

Silver's Role in Electric Vehicles

The rise of electric vehicles is reshaping the automotive industry. In 2023, EVs made up approximately 18% of all new car sales globally, a sharp increase from just 4% in 2020. By 2030, that number is projected to surpass 60% in major markets such as Europe and China, according to the International Energy Agency (IEA).

Silver plays a critical role in this transformation from gas vehicles to EVs:

• Battery Technology: Innovations like Samsung's solid-state EV batteries, which incorporate a silver-carbon composite layer, are setting new performance benchmarks. These advancements could lead to a significant increase in silver demand, with projections estimating up to 1 kg of silver per EV battery pack¹.
   
• Inductive Charging: Wireless charging systems for EVs utilize silver-plated induction coils, enhancing charging efficiency and convenience². 
   
• Power Electronics & Circuitry: EVs rely heavily on silver for electrical contacts, inverters, and other components that manage power distribution.
  With more onboard electronics than conventional vehicles, each EV requires significantly more silver.
   

Silver's Contribution to Solar Energy

Solar power is at the forefront of renewable energy initiatives, and silver is integral to its success:

• Photovoltaic Cells: Silver's high electrical conductivity makes it ideal for use in photovoltaic (PV) cells, the core component of solar panels. Each PV cell contains approximately 111 milligrams of silver, facilitating efficient electron flow and energy conversion³.
   
• Growing Demand: The global push for renewable energy is driving a surge in solar installations. Between 2020 and 2030, it's estimated that the photovoltaic sector will consume a cumulative 888 million ounces of silver, averaging 81 million ounces per year⁴.
   

Silver's Market Outlook

The increasing demand from green technologies such as solar energy, EV’s and energy storage is influencing silver's market dynamics. As industrial applications grow, supply pressures and investment interest are expected to rise alongside them: 

• Investment Interest: Silver's role in clean energy is attracting investors seeking assets aligned with sustainability goals. The metal's performance is being closely monitored as the green revolution progresses⁵.​ 
• Industrial Demand: In 2024, industrial silver use reached a record high of 680.5 million ounces, marking an 11% increase from the previous year. This upward trend is expected to continue, with projections indicating that industrial fabrication will surpass 700 million ounces for the first time in 2025⁶. 
• Supply Deficit: The silver market is forecasted to remain in a deficit for the fifth consecutive year in 2025, with a projected shortfall of 149 million ounces. This ongoing supply-demand imbalance underscores the metal's critical role in the green economy⁵. 

Silver's unique properties and its essential role in EV and solar technologies underscore its importance in the global shift towards sustainable energy. As demand for these technologies grows, so too will the need for silver, solidifying its position as a critical component in the green revolution and a material of the future.

Sources:

1. New Samsung EV battery technology has captivated silver bulls. Here’s the argument, ​MarketWatch  
2. Over 1.5 Billion Ounces of Silver Forecast to be Consumed in Crucial Green Technologies Through 2030, The Silver Institute 
3. Silver and Green Technology: Its Role and the Future of Silver Demand, ​APMEX
4. Silver to be Critical to Solar Power Generation Market Over Next 10 Years, The Silver Institute 
5. Global Silver Market Forecast to Remain in a Sizeable Deficit in 2025, Silver Institute
6. Silver Industrial Demand Reached a Record 680.5 Moz in 2024, Global Newswire