Electric vehicles are known for their innovation, advanced technology, and materials used for their making. Amongst them are precious metals such as silver. Silver plays a vital role in many systems that make electric cars work.
So, how much silver is used to produce an electric car? In each EV, depending on the model, there are between 25 and 50 grams of silver. That is little more than in hybrid vehicles, which are used between 18 and 34 grams of silver.
But we just started! Why does EV need silver? What is it used for? Is there enough silver for the ever-growing market of the automotive sector? We will answer this and many more just below. Stay with us!
Statistics of Silver in Electric Cars
There are a lot of statistics that can show how silver impacts the production of electric vehicles and why that is the main reason for the rise in silver demand.
- The automotive industry uses 55 million ounces of silver annually, which is expected to rise to 90 million ounces in 2025.
- 56% of all silver consumption is used on green technologies, including electric cars and solar panels
- 25-50 grams of silver is used to produce each electric vehicle.
Is There Silver In Electric Car Batteries?
Yes, there is. Silver is a precious metal known for its electrical and thermal conductivity, making it a perfect material and a component of a car battery. Silver is also non-toxic and hypoallergenic, which makes it perfect for use in green industries.
What Is Silver Used For In Electric Cars?
Several systems in EVs require silver to work as it should. Some of them are:
- Infotainment systems
- Navigation systems
- Electric power steering
- Automatic braking
- Much of the alert systems
- Systems for the deployment of airbags
Silver Supply & Demand
Silver Institute reports that the silver supply is steadily rising. For the last three years, there has been an increase in quantities of mined silver, as well as recycled ones. Last year’s production was estimated to be 843.2 million ounces, while recycled silver weighed 180.8 million ounces.
Demand for silver is ever high at last year’s figures, going to almost 540 million ounces of silver only on industrial demand. Next is the electronic sector, which used 353 million ounces of silver, jewelry used 201 million, and bars and coins produced almost 280 million ounces.
The silver market will continue its expansion mostly because there is an increased need for it in the automotive industry and for producing renewable energy. Electric cars and solar panels will be massive users of silver in the future.
Is Silver A Good Investment Due To Electric Cars?
Several governments, including the USA, have set plans for a significant increase in EV cars to share in the automotive market. Several precious metals, such as silver and gold, increased their value because they are used to produce electric cars.
The demand for silver is on the rise, and it will continue to rise because there will be more electric vehicles on the road. All that will increase silver demand, and with it, the price will rise.
Key Takeaway: Investing in silver sounds like a good idea because the price will need to increase if this trend continues.
Market demand for more silver because of the forecasted rise of EV production will affect silver prices and other metals, such as gold.
Check Out the Future for Silver: Why Tesla & Solar Could Lead to Supply Shock:
FAQs
Is There Any Silver in Tesla Vehicles?
Yes, there is silver in them. All electric cars use silver to produce some components, and Tesla is no different.
What Metal Is Most Commonly Used in Electric Vehicles?
It all depends on the model, but the most used metal is graphite, with an average use of 66.3 kilos per vehicle. It is followed by copper, and it’s 117 lbs per vehicle. Nickel (87.9 lbs per vehicle) and manganese (54 lbs per vehicle) are worth mentioning.
Is Silver a Renewable Resource?
Renewable resources are those that can be replaced by nature and its cycles. Some of the renewable resources are water, trees, and wind. Once depleted, Resources found in the ground cannot be replaced.
Among nonrenewable resources are minerals, metals, and fossil fuels. Silver is a metal, and it can be recycled, but it cannot be renewed.
Is There Any Silver in Solar Panels?
Silver is essential for producing solar panels; around 20 grams of silver are in each. Its electrical conductivity proportions help in maximizing the power output of the panel.
When Will the Cost of Silver Increase?
High demand for silver should already have impacted a significant price rise. The problem with the usage of silver is that there are shortages of other materials that hold down the industry and its need for silver. The silver demand will rise once the problem with materials such as lithium is resolved.
Final Considerations
Advanced technology, such as electric car production, demands a lot of different, expensive, and rare materials. Silver, with its features, showed that it is a great choice for use in different aspects of EV production.
The rise in silver demand will follow renewable energy development, including the production of EV cars and increased solar panel production. Silver has many other uses in producing and storing electricity, and it will significantly increase its price. Silver could be an excellent alternative to other investments, but it still needs time.
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