3 July 2023
Changes in solar panel technology are driving up demand for silver, creating a supply deficit for the metal. More efficient solar cells require larger amounts of silver, increasing consumption. The solar industry’s shift towards advanced cell structures is contributing to the silver supply shortage. Primary silver mines are rare, and the majority of silver supply comes as a by-product of lead, zinc, copper, and gold projects. As miners hesitate to invest in new projects, increasing silver production is challenging. Chinese solar companies are exploring cheaper alternatives like electroplated copper. Silver prices would need to rise for these alternatives to be viable. While there won’t be a silver shortage, the market is expected to reach a new equilibrium at a higher price due to growing demand.