Why is the world running out of silver? (July 11, 2025)

Silver mining output peaked in 2016

Silver mine production peaked in 2016 at 900.1 million ounces (27,996 tonnes), according to data from Metals Focus and the Silver Institute. Since then, mine output has declined, with 2024 production projected at 837.3 million ounces, a 7% drop from the 2016 peak. Due to lower silver prices in the past decade, investments into new silver mines is limited.

An estimated deficit of 858 million troy ounces has occurred in the last five years

Industrial demand, particularly for solar panels, has been a key driver of deficits. In 2024, industrial demand reached a record 680.5 million ounces, with solar energy applications consuming around 16-19% of total silver demand (approximately 193.5 million ounces in 2023). By 2027, solar panel production could require over 20% of annual silver supply, and by 2050, it may consume 85-98% of current global silver reserves if trends continue.

chart displaying increased solar production in MW over years

The world’s above-ground silver is being rapidly depleted by these key industrial applications

Photovoltaics (Solar Panels): ~193.5 million ounces. Silver is critical for conductive paste in solar cells, with demand rising due to global renewable energy adoption.
Electronics: ~200 million ounces. Used in conductive inks, printed circuit boards, and semiconductors for devices like smartphones and computers.
Brazing Alloys and Solders: ~50 million ounces. Employed in manufacturing, automotive, and aerospace for joining metals.
Other Industrial (e.g., batteries, catalysts, medical equipment): ~237 million ounces. Includes silver in water purification, chemical catalysts, and antimicrobial coatings.

Other key silver applications account for about half of 2024’s silver production

Jewelry: ~205 million ounces, ~17% of global demand. Silver’s aesthetic appeal drives demand in fashion and luxury markets, especially in regions like India.

Silverware: ~60 million ounces, ~5% of global demand. Used for decorative items, cutlery, and traditional artifacts, with strong demand in Asia.

Photography: ~30 million ounces, ~2.5% of global demand. Silver halides are used in traditional X-ray films and high-quality photographic prints, though demand has declined due to digital photography.

Investment (Physical Bars and Coins): ~280 million ounces, ~23% of global demand. Driven by investor interest in silver as a store of value, particularly during economic uncertainty.

Other Uses (e.g., mirrors, dental alloys, water purification): ~30 million ounces, ~2.5% of global demand. Includes niche applications like silver-coated mirrors and antimicrobial coatings in medical devices.

Data Source: The Silver Institute’s World Silver Survey 2023 and Global Silver Demand Forecast for 2024 provide these figures. https://silverinstitute.org/

New solid-state batteries in EVs could use 600% more silver than current lithium-ion batteries

Emerging technologies, particularly solid-state batteries for electric vehicles (EVs), are poised to dramatically increase silver demand, potentially reshaping the global silver market. Innovations like Samsung’s solid-state battery, which uses a silver-carbon (Ag-C) composite anode, promise a 600-mile range, 9-minute charging time, and a 20-year lifespan, with each 100 kWh battery pack requiring approximately 1 kilogram (32 ounces) of silver—over 600% more than the 5 grams used in current EV batteries. The lightweight design of these batteries, enabled by their high energy density of 500 Wh/kg (nearly double that of conventional lithium-ion batteries), allows for lighter vehicles, extended range, and reduced costs over time, making EVs more cost-attractive and likely to capture a larger market share. If just 20% of the 80 million vehicles produced annually adopt this technology by 2030, silver demand could surge by 16,000 metric tons—equivalent to 64% of current global silver production (25,660 metric tons). While these advancements could drive silver prices higher, challenges like production costs, charging infrastructure, and potential competing technologies (e.g., graphene batteries) may temper adoption timelines.

Silver Recycling contributes nearly 200M Oz to yearly silver supply

Silver recycling plays a vital role in supplementing the global silver supply, contributing approximately 200 million ounces annually to the market, primarily from industrial scrap, jewelry, and silverware. However, this recycled supply falls short of meeting the rapidly growing demand, which reached 1,195 million ounces in 2023 and is projected to hit 1,302 million ounces in 2024, according to the Silver Institute. The surge in demand, driven largely by industrial applications like solar panels (consuming 193.5 million ounces in 2023) and electronics, has outpaced both mined production (837 million ounces in 2023) and recycling efforts, leading to a structural deficit of 678 million ounces from 2021 to 2024. While recycling mitigates some pressure on dwindling above-ground stocks, it cannot keep up with the accelerating consumption, particularly in green energy sectors, exacerbating concerns about silver scarcity.

A collection of vintage computer components stacked together

The global silver market has faced a persistent structural deficit, averaging approximately 135.6 million ounces per year over the past five years (with a projected 117.6 million ounce deficit in 2025), according to the Silver Institute’s World Silver Survey 2025. This shortfall is driven by soaring demand, particularly from solar panel production (193.5 million ounces in 2023) and the electrifying wave of technologies like solid-state batteries, which could consume significant silver quantities as electric vehicles gain market share. With industrial demand projected to grow further—potentially exceeding 20% of annual silver supply for photovoltaics alone by 2027—these deficits are set to widen. Compounding this, Keith Neumeyer, CEO of First Majestic Silver, recently noted in an interview that bringing a new silver mine online in North America takes 18 years due to regulatory and logistical hurdles, making significant supply increases unlikely in the near term. As above-ground silver stocks dwindle, with a reported 5% inventory decline in 2023, the market faces mounting pressure.

Stay tuned for our next article, where we’ll explore the timelines for when above-ground silver supplies may reach critical stress points under this relentless demand and how long these reserves might last. “When Will the Silver Deficit Deplete Above-Ground Stocks“

Sources:

The Silver Institute. (2023). World Silver Survey 2023. Retrieved July 13, 2025, from https://www.silverinstitute.org

Provides comprehensive data on 2022 silver supply, demand, and market deficit, including historical context for production and industrial demand.

The Silver Institute. (2024). Global Silver Demand Forecast for 2024. Retrieved July 13, 2025, from https://www.silverinstitute.org

Forecasts 2024 silver demand at 1.2 billion ounces, highlighting industrial demand growth, particularly in photovoltaics, and the fourth consecutive year of market deficit.

The Silver Institute. (2025). World Silver Survey 2025. Retrieved July 13, 2025, from https://www.silverinstitute.org

Details 2024 supply and demand dynamics, including a 148.9 million ounce deficit, record industrial demand of 680.5 million ounces, and projections for a 117.6 million ounce deficit in 2025.

The Silver Institute. (2025). Global Silver Market Forecast for 2025. Retrieved July 13, 2025, from https://www.silverinstitute.org

Projects a fifth consecutive year of silver market deficit in 2025 (149 million ounces), driven by industrial demand and limited supply growth, with recycling increasing to 200 million ounces.

MINING.COM. (2023, April 24). Silver market fundamentals strong as it enters a new era of supply deficits. Retrieved July 13, 2025, from https://www.mining.com

Reports a 237.7 million ounce deficit in 2022 and cites Keith Neumeyer’s views on potential triple-digit silver prices due to supply constraints.

MINING.COM. (2024, April 17). Global silver deficit to rise in 2024. Retrieved July 13, 2025, from https://www.mining.com

Notes a projected 215.3 million ounce deficit in 2024, driven by 2% demand growth and a 1% supply decline, with insights from Metals Focus.

MINING.COM. (2025, April 16). Lower silver demand and higher supply to reduce global deficit by 21% in 2025. Retrieved July 13, 2025, from https://www.mining.com

Projects a 117.6 million ounce deficit in 2025, with steady industrial demand and a 2% supply increase, including recycling growth.

MoneyMetals.com. (2024, October 4). Silver miners struggle to keep up with demand. Retrieved July 13, 2025, from https://www.moneymetals.com

Discusses the 2016 silver production peak (900.1 million ounces) and ongoing deficits, with a 7% production decline by 2024.

MoneyMetals.com. (2025, April 17). Silver Market Records Fourth Straight Supply Deficit. Retrieved July 13, 2025, from https://www.moneymetals.com

Summarizes 2024’s 148.9 million ounce deficit and record industrial demand, with a cumulative 678 million ounce shortfall from 2021–2024.

MoneyMetals.com. (2025, April 25). Keith Neumeyer: Silver’s Supply Crisis and the Coming Price Surge. Retrieved July 13, 2025, from https://www.moneymetals.com

Features an interview with First Majestic Silver CEO Keith Neumeyer, discussing the 18-year timeline for new mine development in North America and underreported deficits.

MoneyMetals.com. (2025, May 13). Review: World Silver Survey 2025. Retrieved July 13, 2025, from https://www.moneymetals.com

Summarizes key trends from the 2025 World Silver Survey, including a 6% rise in recycling to 193.9 million ounces in 2024 and flat mine production.