Solar Panel Silver Squeeze Worsens as Demand Outstrips Supply

The solar panel industry is facing a silver squeeze as it consumes nearly a quarter of the world's mined silver, up from 24 percent in the previous year. This trend has been ongoing for years, with the amount of silver used in each panel decreasing, but not enough to offset the growing demand.

Silver is a crucial component in solar panels, as it conducts electricity better than any other metal and can be printed onto cells using a thin layer of paste. However, this comes at a cost, as the industry consumes an estimated 197.6 million ounces of silver in 2024, up from 192.7 million the year before.

The issue is not just about demand, but also supply. Only 28 percent of silver comes from mines specifically dug for silver, while the rest is a byproduct of lead, zinc, copper, and gold operations. This means that even with high prices, it's difficult to bring new silver supply forward.