Page 23 - Bullion World Issue 01 Volume 06 January_2026

Bullion World | Volume 6 | Issue 01 | January 2026
Silver, the Next

Generation Metal:

How Solar, EVs and AI

Are Reshaping Industrial

Demand

more silver per unit than internal combustion engine
cars, reflecting the heavier load of power electronics,
battery management and sensor systems, and global
EV production is projected to grow at a 13% CAGR
between 2025 and 2031. Oxford Economics forecasts
that automotive silver demand will rise at a 3.4%
CAGR over 2025–2031 to about 94 million ounces,
with EVs overtaking ICEs as the main automotive silver
Silver is emerging as a pivotal “next generation metal” consumer by 2027 and reaching 59% of automotive
at the intersection of the green energy transition and silver use by 2031, augmented by silver used in EV
the accelerating digital economy, according to the charging infrastructure.
December 2025 report “Silver, The Next Generation
Metal” produced by Oxford Economics for The Silver The third pillar is data centres and artificial
Institute. The study examines how silver’s unique intelligence, where silver is embedded in connectors,
combination of highest in class electrical conductivity, semiconductors, cooling solutions and high reliability
strong thermal conductivity and corrosion resistance contacts. The global stock of data centres has grown
is embedding the metal ever deeper into three growth around elevenfold since 2000, but total IT power
industries: solar photovoltaics, automotive and electric capacity has surged about 53 fold to nearly 50 GW
vehicles, and data centres/AI.
by 2025, indicating a shift toward fewer, much larger
facilities packed with silver bearing electronics. With
In solar, the report notes that installed PV capacity has North America, Western Europe and East/Southeast
increased more than tenfold over the past decade, with Asia currently hosting 88% of IT power, the report
China accounting for just over half of that growth, while expects future capacity – and thus silver demand –
silver demand from PVs has tripled over the same to grow fastest in under served regions as AI, cloud
period. Although technological “thrifting” has reduced services and latency sensitive applications expand,
silver use per cell, next generation cell architectures supported by proactive government policies in the US,
such as TOPCon and SHJ are more silver intensive EU, UK, China and others to classify data centres as
than today’s PERC cells, and by 2030 solar is forecast strategic infrastructure.
by the IEA to be the dominant renewable power source
globally with around 17% CAGR in added capacity, Overall, the report concludes that while thrifting,
underpinning robust silver demand. Policy support substitution and recycling will influence intensity of use,
in regions such as the EU and India, combined with structural growth in solar, EVs and digital infrastructure
falling levelised costs of solar electricity, offsets some cements silver’s role as a foundational industrial metal
headwinds from US and EU trade actions and subsidy in the coming decade.
cuts.

Source: “Silver, The Next Generation Metal”, Oxford
In transport, the report highlights silver’s growing role Economics for The Silver Institute, December 2025.
as vehicles electrify and become more electronics rich. To read the report in full, please refer directly to the
Battery electric vehicles are estimated to use 67–79%
original publication.

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