Silver Institute: 'Green Technologies' To Require More Silver
(Kitco News)- So-called “greentechnologies,” meant to better protect the environment while meeting the demandsof consumers, should boost silver demand in the future, says a report from theSilver Institute.
In particular, the reportcited an expectation for exponential growth of new-energy vehicles (NEVs) andcontinued investment in solar photovoltaic energy. The combined demand fromthese two sources will exceed 1.5 million ounces by 2030, the report estimated.
The Silver Institute is anindustry association based in Washington D.C., with members consisting ofsilver producers, refiners, manufacturers and dealers. The report, titled “TheRole of Silver in the Green Revolution,” was prepared for the institute by CRU,a commodities consultancy.
The report pointed outthat the cost of solar photovoltaic systems has fallen rapidly relative toother electrical sources over the past two decades. Silver is used to conductelectricity.
“This is expected tocontinue over the medium term, leading to an ever-increasing share in renewableenergy generation and investment for PV, led by both macroeconomic/costconsiderations and public policy,” the Silver Institute said.
The report estimated thatroughly some 820 million ounces of silver will be used by global solar energyapplications through 2030.
Meanwhile,in an attempt to curb pollution, many governments have provided financialincentives and passes new regulations favoring the development of electric andhybrid vehicles, the Silver Institute said. In fact, China, the largest carmarket in the world, is gradually moving from incentives for buying electricvehicles to actually penalizing manufacturers who fail to offer NEV models, theSilver Institute said.
“Spurredon by this policy support, as well as falling costs, new energy vehicles suchas battery electric vehicles and plug-in hybrids will account for anever-increasing proportion of global vehicle sales,” the Silver Institute said.“A potential game changer for transportation is the use of inductively coupledpower transfer technology to wirelessly charge vehicles using silver-platedinduction coils. Though current market penetration remains low,improvements in performance and cost can open significant opportunities forwireless charger adoption in the coming years.”
Theseefforts are forecast to require approximately 725 million ounces of silverthrough 2030, the report said.
Further,the Siler Institute pointed out that silver is also used in the generation ofnuclear energy. Silver is used with other metals to produce the reactors’control rods. One of the most common materials used is an alloy that is80% silver, 15% indium and 5% cadmium.
“Thoughsmall in terms of expected offtake at 19 million ounces of total silver demandthrough 2030, demand for silver in this area could rise with future growth ofnuclear reactors globally,” the Silver Institute said.
By Allen SykoraFor Kitco News
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