The recent surge in gold prices above $2,500 has highlighted a stark contrast with silver, which has struggled to keep pace.
However, this dynamic might change due to a technological development from Samsung that could significantly increase silver demand.
According to retired financial analyst Kevin Bambrough post on X.com, Samsung’s new solid-state (SS) battery technology, which incorporates a silver-carbon (Ag-C) composite layer in its anode, could be a game-changer for the silver market, particularly as demand for electric vehicles (EVs) grows.
This innovation enhances battery performance, offering a 600-mile range, 20-year lifespan, and a rapid 9-minute charge time.
Each EV battery pack, containing around 200 cells, could require an estimated 1 kilo of silver each. The solid state battery is expected to have offer a 20 year life span, a range of up to 600 miles and can be charged in as little as nine minutes. Has a 20 year life span
If just 20% of global vehicle production (approximately 16 million EVs) were to adopt these batteries, it could increase annual silver demand by 16,000 metric tons, a substantial portion of the current global production of about 25,000 metric tons.
The potential increase in silver demand from the automotive sector, combined with existing demand from the solar industry, suggests a bullish outlook for silver prices. Bambrough even speculates that price of silver could reach its inflation-adjusted high of $200/oz within the next 10-15 years.
Currently, solid-state batteries are more expensive to manufacture than traditional lithium-ion batteries, potentially limiting their immediate adoption to higher-end vehicles like Lexus.
The roll-out of solid-state batteries will require significant investment in ultra-fast charging infrastructure, which could slow the adoption rate.
The demand for metals and alloys used in EV charging stations is also expected to grow, particularly for materials like stainless steel, aluminum, copper, nickel, and titanium.
This development underscores the potential for significant shifts in the silver market driven by technological advancements in the automotive industry, particularly with the growing focus on electric vehicles. As the market adapts to these innovations, silver may see increased demand, leading to potential price increases in the coming years.