Precious metals are not just a safe haven for investors, they are the indispensable lifeblood of modern industry. From automobiles and electronics to medical devices, their presence is ubiquitous.
However, with the volatility of global supply chains and a growing environmental consciousness, the efficient use and recycling of these valuable resources have become an urgent priority for the industry.
Navigating Price Surges
Over the past few years, precious metal prices have experienced sharp increases, with gold and silver seeing significant gains. Following the COVID-19 pandemic, central banks worldwide implemented extensive monetary easing policies. This, combined with escalating geopolitical tensions and trade conflicts, led to the strong need for safe-haven assets. Gold prices first surpassed US$2,000/oz in 2020. After a period of consolidation, the bullish trend resumed in 2023, with prices surpassing the US$3,000/oz mark this year and setting a new all-time high of over US$3,500/oz in April.
Similarly, silver has followed this upward trajectory, with its recent performance being even stronger. In July, silver prices hit a 14-year high, closing at US$37.01/oz – more than double the metal’s 2019 price. This dramatic increase in silver’s price has placed considerable pressure on the cost-sensitive electronics industry, forcing manufacturers to accelerate the implementation of thrifting and substitution measures to mitigate the impact on profit margins.
In response to rising costs, the electronics industry has made significant strides in optimising its use of precious metals. The photovoltaic (PV) industry stands out for its silver-saving initiatives. As the largest single industrial application for silver, accounting for over 30% of industrial offtake, the PV sector has a profound influence on the global supply chain. Despite record high solar installations last year, which pushed the industry’s silver demand to over 6,000 tons, the sector is actively reducing its per-unit silver consumption through continuous technological advancements and cost-saving efforts.
Solar Innovation
Since 2010, the solar industry has drastically reduced its average unit silver loadings by over 90%, with manufacturers continuously pushing for greater technology and efficiency. For example, when TOPCon cells – now a market mainstream – were first introduced in 2019, they required more than 25mg of silver per watt. By the end of last year, that figure had plummeted to just 9mg/W, with similar advancements seen in other solar cell technologies.
This remarkable progress is the direct result of several key innovations:
- Zero Busbar (0BB) Technology: The evolution from SMBB (Super Multi-Busbar) to 0BB design optimises the cell structure, reducing silver paste consumption and increasing the light-receiving area.
- Refinements of Printing Techniques: The adoption of LECO (Laser Enhanced Contact Optimisation) and other process upgrades allows for finer lines and more precise printing.
- Silver-Coated Copper Paste Formulations: The use of lower-cost silvercoated copper paste effectively substitutes pure silver paste while maintaining high conductivity and performance.
Through aggressive thrifting and substitution, the PV industry has significantly enhanced its silver-use efficiency, with an estimated 600 to 900 tons of silver projected to be saved in 2025. This will help balance the supply deficit in the global silver market. In the long run, this will not only lower production costs but also provide the electronics industry with more resilient production strategies to manage price volatility.
Over the past few years, precious metal prices have experienced sharp increases, with gold and silver seeing significant gains.
Recycling: Turning Old Tech into New Opportunity
The recycling sector for silver has also benefitted from the metal’s sustained price increase. Industrial silver scrap has shown consistent growth, rising from 2,942 tons in 2019 to 3,452 tons in 2024. The recovery of spent ethylene oxide catalysts has been a primary driver of this steady expansion in industrial recycled silver.
However, as the solar industry grows rapidly, a massive number of solar panels will be decommissioned over the next few decades, creating a substantial market for recycling. While PV recycling currently faces technical and cost challenges – with specialised methods for efficiently separating valuable metals such as silver and copper from materials such as glass and plastics not yet fully commercialised – it undeniably represents a critical emerging source of silver supply.
Given ongoing trade disputes and tariff challenges, competition among countries to secure key raw materials and advanced technologies is likely to intensify, leading to greater price volatility for precious metals. In response, the industry is proactively leveraging technological innovation to achieve resource conservation and recycling. This is not merely a strategy to manage cost pressures but a crucial step toward promoting sustainable development. This ‘thrifting, substitution and recycle’ movement will have a profound and lasting impact on the future of the precious metals supply chain.
