High Demand for Silver Metal Drives Revival in Solar Electricity Sector

Hassouna Al-Tayeb (Abu Dhabi)

The solar electricity sector is seeing a huge revival, which has accelerated the demand for silver metal, which is much needed to make photovoltaic solar panels.
The metal is an essential element in these panels, due to its high electrical conductivity, thermal efficiency, and light appearance, which encouraged mining companies to increase their production rates, at a time when whose prices recorded numbers not seen in several decades.
Global investments in the photovoltaic solar panel industry doubled last year to about $80 billion, accounting for about 40% of global investments in the clean technology industry.
China more than doubled its investments in this area between 2022 and 2023, according to a report issued by the International Energy Agency.
In the past year, global renewable energy capacity registered an increase of 50% to about 510 gigawatts, at the fastest pace in 30 years, of which 45% came from solar photovoltaic energy, according to Wall Street Journal. Demand for silver from solar panel manufacturers for photovoltaic energy is likely to increase by about 170% by 2030, to about 273 million ounces, or 20% of total global demand for the metal.
Spot prices for photovoltaic panels fell by around 50% last year, due to China flooding the markets with the product, according to the group. China’s PV solar capacity last year was almost that achieved worldwide in 2022, according to the International Energy Agency. The group expects the country to maintain a market share of between 80% and 95% of global supply chains and to double its manufacturing capacity again by the end of this year 2024, which will significantly worsen the level of supply.
Chicago-based Coyor Mining Company is looking to capitalize on the high demand for cash, as it recently completed an expansion of its Nevada mine, which is expected to be the largest of its kind in the production of silver in America.
London-based British Hochschild is also planning to increase its production volume, as it hopes to get approval to set up a mine in Peru later this year, which is expected to start production in 2027. adding 50 million ounces to the company’s operations. annual rate of return.
This increase in demand led to a record increase in silver prices last April, reaching $28.84 per ounce, recording the highest level in more than 10 years. Unsurprisingly, company share prices have also seen a rise, as Fresnillo’s share price in London has jumped 17% since metal prices began to rise. He also recorded a significant increase in Hochschild, about 61% since last February, and almost doubled in Coeur.
If silver prices continue to rise, solar photovoltaic panel producers may find themselves raising prices in the final months of this year.