Silver has indeed benefited significantly from the global shift toward green energy, emerging as one of the most important metals in this transition. The demand for silver has surged primarily due to its critical role in renewable energy technologies, especially solar photovoltaic (PV) panels and electric vehicles (EVs). This demand growth has made silver a standout beneficiary in the green energy revolution.
The photovoltaic solar market is the largest driver of silver demand in the green energy sector. Silver is used extensively in solar panels because of its excellent electrical conductivity, which is essential for efficient energy conversion. Global silver demand reached approximately 1.2 billion ounces in 2024, with the solar PV sector accounting for about 14% of this demand, a significant increase from just 5% in 2014. This growth is expected to continue, with projections indicating that by 2030, the PV industry could consume between 10,000 and 14,000 tonnes of silver annually. This would represent roughly 29% to 41% of the total projected global silver supply, highlighting the metal’s critical role in solar energy production[1][4].
Despite ongoing research and development efforts aimed at reducing the amount of silver used per solar cell, the rapid expansion of solar installations worldwide is expected to offset these efficiency gains. Newer solar technologies such as TOPCon and HJT cells, which are more silver-intensive, may further increase silver consumption in the PV industry. This dynamic creates a potential supply-demand imbalance, as global silver supply is estimated to be around 34,000 tonnes per year, while total demand could reach up to 52,000 tonnes by 2030[4][5].
Beyond solar energy, silver’s unmatched electrical conductivity makes it indispensable in other green technologies, particularly in electric vehicles and their charging infrastructure. The automotive sector’s silver use is projected to triple by 2040 due to the growing adoption of EVs. Silver is used in batteries, electrical contacts, switches, and charging stations, all of which are essential components of the electric mobility ecosystem. This sustained demand growth in electronics and automotive applications further strengthens silver’s position as a key metal in the energy transition[1][2].
The surge in silver demand linked to green energy has also influenced silver prices. In 2025, silver prices approached their highest levels since 2011, driven by a combination of Federal Reserve policies, safe-haven investment demand, and booming industrial use in solar and EV sectors. This price increase reflects the market’s recognition of silver’s strategic importance in the global energy transition[3][6].
Silver mining companies are responding to this demand by adopting more sustainable and environmentally friendly practices. Leading producers like Fresnillo plc, Pan American Silver, and First Majestic Silver have committed to reducing their carbon footprints, increasing the use of renewable energy in their operations, and enhancing water recycling and biodiversity protection. These efforts align with broader environmental, social, and governance (ESG) standards, which are increasingly important to investors and stakeholders in the mining industry[3].
The green energy-driven demand for silver also has broader economic and geopolitical implications. The concentration of silver mining in a few key regions creates supply chain vulnerabilities that could be exacerbated by geopolitical tensions or disruptions. This situation may prompt governments and corporations to pursue strategies such as increased domestic mining, recycling initiatives, and strategic stockpiling of silver. Additionally, the demand squeeze on silver could accelerate research into alternative materials or more efficient silver recovery technologies, similar to how past commodity shortages have spurred innovation in other sectors[6].
In summary, silver’s unique properties and its critical applications in solar energy and electric vehicles have positioned it as a major beneficiary of the green energy transition. The metal’s demand is expected to continue growing rapidly, driven by expanding renewable energy installations and the electrification of transportation. This growth is reshaping silver markets, influencing prices, and prompting sustainability efforts within the mining industry, all of which underscore silver’s central role in the global shift toward cleaner energy.