China's Solar Industry Drives Silver Demand, Creating Global Mineral Security Concerns

The Chinese solar industry has become a dominant force in the global market, producing 574.5 gigawatts of modules in 2025, roughly 83% of world output.

This concentration of manufacturing power gives China significant influence over silver demand, as it is used to print electrical contacts onto solar cells.

According to the Silver Institute, photovoltaic manufacturing consumed a record 197.6 million ounces of silver in 2024, accounting for 17% of total silver demand and 29% of industrial demand.

The relationship between China's solar industry and silver is one of mutual dependence: China shapes silver demand, while silver availability and price constrain China's industrial ambitions.