(Kitco News) - While silver is favored due to more photovoltaicsand an uptrend in precious metals in light of currency worries, the Silver Institute said the electric vehicle sector is also going to need more Ag.
In a study published Tuesday, the institute said that increasing vehicle complexity will drive silver demand higher.
"Automakers today are increasingly relying on silver to enable the vast technological advances incorporated into modern vehicles. This has resulted in another powerful demand center for silver, with projections of nearly 90 million ounces (Moz) of silver absorbed annually in the automotive industry by 2025. Notably, by that time, this will rival silver consumption in the photovoltaic industry, forecasted to be 98 Moz this year, and currently the largest application of global industrial silver demand," writes the institute's authors.