Global silver demand reached nearly 1.02 billion ounces in 2021, the first time it has passed the 1 billion mark since 2015.

Of this total, 524 million ounces were used to meet industrial demand, which reached a new high.

Industrial demand for silver booms

Indeed, to meet its environmental and emissions reduction goals, the world will need a lot of silver in the coming years, much used in solar panels and electric vehicles in particular due to its superior conductivity.  The expected gap between silver supply and demand will therefore undoubtedly continue to grow.

Until recently, silver in the green economy was mainly used for the construction of photovoltaic panels.

Installations have grown massively over the past decade, and demand for silver for solar panels is expected to grow by over 10% in 2022.

While demand for silver in the PV sector could then start to plateau, it is the automotive industry that would then take up the slack by using silver in large quantities in the production of electric vehicles.

Electric cars use much more silver than their internal combustion engine counterparts, about 3 ounces per vehicle.

To achieve net zero emissions by 2050, it has been estimated that the number of electric vehicles on the road in the United States would need to reach 186 million, or 66% of the current vehicle fleet.

This will significantly increase the demand for silver...

Source: Metals Focus