China Solar Silver Use to Be Cut As Prices Soar
China's LONGi to Cut Silver Use in Solar Cells as Costs Surge
GFN – BEIJING: Longi Green Energy Technology Co. will begin substituting base metals for silver in its solar cells, according to Bloomberg News, as China’s solar manufacturers move to reduce costs amid record prices for the precious metal.
The company said mass production using base metals is expected to start in the second quarter, a move intended to:
“further lower the costs of solar modules,” according to a regulatory filing cited by Bloomberg.
The shift comes as solar manufacturers, the largest industrial consumers of silver, face overcapacity and intense competition while input costs rise sharply. Silver prices tripled last year as investor demand collided with constrained supply, Bloomberg reported.
BloombergNEF data show that when silver traded near $50 an ounce in October, it accounted for more than 17% of the per-watt cost of solar modules, up from 12% two months earlier and about 3% in 2023. Late last month, prices briefly topped $84 an ounce.
Other Chinese manufacturers are taking similar steps. Jinko Solar Co. said in December it could achieve large-scale production this year of panels using base metals such as copper, while Shanghai Aiko Solar Energy Co. has already launched silver-free solar cells with initial capacity of 6.5 gigawatts.
China Dominates Solar Silver
Having gotten somewhat of a handle on Silver supply, the purpose of this piece is to break down China’s Solar Supply-Chain to better understand where demand trends. In doing so we will also answer a question surrounding trends in China’s import/export matrix. Part 1 was entitled Not All Silver is the Same.
BloombergNEF said progress across the industry has been slowed by higher assembly costs and reliability concerns linked to alternative materials, particularly for TOPCon technology. The research firm estimates silver demand from the solar sector will fall 7% in 2025, despite a projected 15% rise in global solar installations.
Of course this will lead to pressure downwards on silver--along with the asteroid that we will be mining AND at the same time as fusion reactors will be introduced to lead to oil obsolescence. Funny how these things come out when commodities are pulling at their bits.
After some research this A.M. and questioning of AI... I decided to keep a tight hold on my Ag... See two final and concluding Q&A below.
Question:
Impact of copper substitution on silver demand in solar industry.
If there is an 80% drop in silver usage, in solar panel design, how does that affect silver demand?
Answer:
An 80% reduction in silver usage by the solar industry would significantly reduce demand pressure, but
global silver prices may not drop proportionally due to structural market dynamics.
The solar industry accounts for ~19% of global silver demand (6,577 tons in 2024), making it the
largest industrial consumer.
An 80% drop would reduce solar silver demand by ~5,260 tons annually, creating a major surplus in the industrial segment.
Question:
By how much would silver demand go up in the industry, worldwide, with the adoption of the silver carbon based batteries design in electric vehicles and electronic devices?
Answer:
If Samsung’s silver-based solid-state batteries are adopted across EVs and consumer electronics,
global silver demand could increase by 16,000 to over 60,000 metric tons annually, depending on
adoption rates.
Each 100 kWh EV battery uses ~1 kg of silver, compared to 25–50 grams in current EVs.
At 20% EV adoption (16 million vehicles/year), demand rises by 16,000 metric tons—64% of current global mine production (~25,000 tons).
At 80% adoption, demand could reach 64,000 tons, exceeding total supply.
Expansion into smartphones, laptops, and wearables would further increase demand, though exact figures depend on device size and battery capacity.
This surge would create a structural deficit, as silver supply grows slowly and recycling remains
limited.