Silver, often overshadowed by gold, could be on the brink of a major breakout, thanks to a new technological development from Samsung. While gold has already surged past $2,500 this year, silver has lagged behind. However, according to retired investment professional Kevin Bambrough, Samsung’s advancement in solid-state battery (SS) technology, which incorporates silver, could soon drive a significant increase in demand for the grey metal.
Samsung has developed a solid-state battery that features a silver-carbon (Ag-C) composite layer in its anode, which is set to revolutionize the electric vehicle (EV) industry. As Bambrough explains, key factors such as range, charge time, battery life, and safety are critical in driving EV adoption. Samsung’s new technology, leveraging silver’s superior electrical conductivity and stability, achieves remarkable benchmarks, including a 600-mile range, a 20-year lifespan, and a 9-minute charge time.
Although official figures are yet to be confirmed, Bambrough estimates that each solid-state battery cell could contain up to five grams of silver. Given that a typical EV battery pack may have around 200 cells, this equates to roughly one kilogram of silver per vehicle. With global car production at around 80 million vehicles annually, even if just 20% of these adopt Samsung’s technology, it could drive an additional demand of 16,000 metric tons of silver per year—significantly impacting the global silver market, which currently produces about 25,000 metric tons annually.
This potential surge in demand from the EV sector, combined with the ongoing deficit driven by the solar industry’s silver consumption, positions silver for a bullish trajectory. Bambrough suggests that silver could even reach its all-time inflation-adjusted high of $200 per ounce within the next 10-15 years, particularly if speculation and hoarding increase due to a perceived shortage.
Samsung is already collaborating with major automakers like Toyota to integrate its SS battery technology into future EV models. However, the widespread adoption of these batteries could be delayed by the need for substantial infrastructure development, such as ultra-fast charging stations capable of delivering the promised nine-minute charge time. Additionally, the high cost of manufacturing solid-state batteries—currently three to four times that of traditional lithium-ion batteries—may initially limit their use to premium vehicles like those from Lexus.
Despite these challenges, analysts see a promising future for silver. Charlie Morris, founder of ByteTree, draws parallels between the current situation and the silver rally of 2010, driven by demand for solar panels. He believes that the growing EV market and the advent of solid-state batteries could trigger a similar surge, potentially outpacing gold in the process.
Moreover, the broader shift towards electric mobility is expected to boost demand for other key metals used in EV infrastructure, such as stainless steel, aluminum, copper, nickel, and titanium. According to a report by Meticulous Research, the global market for EV charging station raw materials, particularly metals and alloys, is projected to grow significantly, with DC fast-charging stations expected to register the highest compound annual growth rate (CAGR) between 2024 and 2031.
As the EV revolution accelerates, silver appears to be on the verge of a significant comeback, driven by technological advancements and the increasing need for robust charging infrastructure.
