Silver Demand in EV’s and Solar – India’s Industrial Bet
For decades, silver in India was a symbol: of dowry, adornment, and saving during droughts. But today, it’s being reinvented – quietly, almost invisibly – inside solar panels, electric vehicles, and high-tech circuits.
What was once “common man’s gold” is transforming into an industrial workhorse. And behind that shift lies one of India’s most potent strategic bets: balancing energy transition, import dependence, and industrial ambition.
Using global reports, industry data, and domestic signals, this story traces how silver’s industrial demand is rising, why it matters, and whether India is ready for the surge.
The Industrial Turn: Why Silver Matters in Energy & EVs
Silver is no ordinary metal. Among all conductive metals, it has the highest electrical conductivity. That gives it a special place in electronics, power systems, and solar cells – places where efficiency, reliability, and longevity define performance..
Global industrial consumption is now the driving force in the silver market.
In 2024, industrial demand for silver reached a record 680.5 million ounces (Moz) -up 4% year-on-year – led by renewables, electronics, and EV-related applications.
Global Silver Demand by Segment (2024F)
| Segment | 2024F Demand (Moz) | Share of Total (%) | Key Uses |
|---|---|---|---|
| Industrial Fabrication | 680.5 | 56% | PV, EVs, electronics, catalysts |
| Jewelry | 189.0 | 16% | Consumer adornment |
| Silverware | 38.0 | 3% | Traditional & ceremonial |
| Investment (Bars, Coins, ETFs) | 303.0 | 25% | Retail & institutional holdings |
| Total | 1,210.5 | 100% | — |
Note: One million troy ounces (Moz) of silver equals approximately 31.1 metric tonnes, or 31,103 kilograms.
So, 680.5 Moz of global industrial demand in 2024 equals roughly 21,150 tonnes of silver – illustrating how massive the industrial use of the metal has become.
Quick Reference Conversion Table
| Silver Quantity | Equivalent (metric tonnes) | Equivalent (kilograms) |
|---|---|---|
| 1 Moz | 31.1 t | 31,103 kg |
| 10 Moz | 311 t | 311,000 kg |
| 100 Moz | 3,110 t | 3.11 million kg |
| 680.5 Moz (2024 industrial use) | ≈21,150 t | ≈21.15 million kg |
Industrial Demand Rising Within Total Demand (2016-2024F)
Industrial usage has been expanding steadily within the global silver balance – from under 45% of total demand in 2016 to over 56% by 2024.
The table below shows how industrial applications have become the dominant consumption driver over the past decade.
| Year | Industrial Demand (Moz) | Total Global Demand (Moz) | Industrial Share (%) |
|---|---|---|---|
| 2016 | 489.5 | 1,083.6 | 45% |
| 2017 | 526.4 | 1,013.0 | 52% |
| 2018 | 524.2 | 1,017.6 | 51% |
| 2019 | 523.5 | 978.0 | 54% |
| 2020 | 509.7 | 896.1 | 57% |
| 2021 | 561.3 | 1,032.6 | 54% |
| 2022 | 588.3 | 1,242.4 | 47% |
| 2023 | 654.4 | 1,176.3 | 56% |
| 2024F | 680.5 | 1,210.5 | 56% |
According to Sprott, a global asset management firm specializing in precious metals and energy transition investments, solar PV alone contributed 17 % of global silver demand in 2024, up from just 5.6 % in 2015, compounding at ~12.6 % annually.
Forecasts suggest that by 2030, solar demand alone could account for 29–41% of global silver supply – implying a structural squeeze unless supply keeps pace.
Meanwhile, in the EV sector:
- Analysts project silver’s use in auto-electronics will eventually exceed that in photovoltaics.
- By 2040, automotive silver demand is expected to triple, particularly in powertrain systems, battery connectors, and high-voltage electronics.
These are not speculative dreams. They reflect how the global energy transition is reshaping commodity markets – and how silver has quietly become one of the most strategic metals of the clean-tech era.
India’s Position: Import Dependency Meets Opportunity
India is not a major silver miner. Over 80% of India’s silver is imported.
To meet rising industrial and investment demand, imports have surged, driven by solar, electronics, and jewelry fabrication. But global supply is tightening, leading to temporary shortages and high domestic premiums – especially during festive seasons like Dhanteras.
But imports alone won’t solve the challenge – global supply is tight, and India competes in a global scramble. In 2025, India experienced a silver shortage during the festive season, caused by high premium over international pricing and constrained global shipments.
Meanwhile, India’s solar ambition adds another layer of demand: installed solar capacity has now crossed 100 GW, and every gigawatt added consumes 80–100 tonnes of silver in PV modules, conductors, and connectors.
Thus, each new GW of solar capacity or each EV rollout translates to tons of silver consumed in wires, pastes, connectors, and cells.
India’s Silver Demand and Imports (2018–2024F)
| Year | Total India Silver Demand (Moz) | Silver Imports (Moz) | Key Commentary (from WSS 2024) |
|---|---|---|---|
| 2018 | 77.6 | 37.0 | Demand recovery after demonetization; strong jewelry/silverware consumption. |
| 2019 | 80.5 | 54.0 | Steady fabrication and retail investment. |
| 2020 | 42.6 | 8.7 | COVID lockdown impact; imports and trade collapse. |
| 2021 | 89.8 | 27.6 | Fabrication rebounds; imports normalizing. |
| 2022 | 196.2 | 79.4 | Record imports amid investment and solar growth. |
| 2023 | 160.5 | 111.7 | High inflows; elevated bar & coin demand. |
| 2024F | 170.0 | — | Forecast of steady industrial and jewellery demand. |
Source: The Silver Institute, “World Silver Survey 2024” (Metals Focus, April 2024), pp. 46–48.
From Numbers to Reality: How Much Silver Does Solar & EV’s Use?
By 2030, the global photovoltaic (PV) industry is expected to consume 10,000–14,000 metric tonnes of silver each year – roughly 320–450 million ounces – accounting for 29–41 % of total silver demand. That’s a structural load on supply unlike anything seen before in the metals market.
In 2024, global industrial silver demand already stands at a record 680.5 million ounces, and analysts project that automotive and EV applications will eventually overtake photovoltaics in silver usage. Every step of electrification – from battery connectors to inverters and charging systems – is pulling silver deeper into the industrial chain.
China’s solar-cell exports have surged nearly 70 % in early 2025, amplifying global consumption – and the ripple inevitably reaches India, where domestic solar manufacturing and EV assembly are accelerating in tandem.
In short: every new gigawatt of solar power or million EVs sold now embeds kilograms of silver – turning an ancient ornamental metal into a modern industrial necessity.
IndiaGraphs Insight: Why This Changes the Silver Paradigm
1. Industrial demand is no longer niche.
Before, silver’s value lay mostly in jewellery, coins, and savings. Now, the engines of demand are PV modules, EV systems, IoT, semiconductors – all growth sectors in India’s industrial push.
2. Deficit is likely structural.
When industrial demand is rising steadily, and silver supply is constrained (much is produced as a byproduct of mining for other metals), deficits could persist.
3. Rupee and imports amplify the effects.
Because India imports the metal, any rupee weakness magnifies local costs – making industrial silver more expensive domestically.
4. A new category: Strategic metal + investment asset
Previously, silver’s investment demand was separate from industrial demand. Now, the two are merging. Buyers are not just investors or hobbyists – manufacturers, tech firms, and solar project developers are buyers too.
What India Should Watch – Risks, Catalysts & Scenarios
Risk Factors
- Supply constraints & mining limitations – Much of the world’s silver is mined as a byproduct of other metals, so expanding supply quickly is difficult.
- Technological substitution or “thrifting” – Manufacturers are finding ways to reduce silver content in solar cells or replace it with cheaper materials.
- Policy distortions & trade barriers – Export restrictions, tariffs, or supply-chain disruptions could limit India’s access to imported silver.
- Over-optimistic forecasts – Demand growth might slow if new technologies reduce silver usage per unit of output.
Catalysts to watch
- Green Push & Target Renewables – India’s policy focus on solar, EVs, and hydrogen enhances demand.
- Structural supply deficit:The Silver Institute expects the global silver market to remain in deficit for several years – supporting higher prices.
- Auto and EV expansion domestically – Every EV built in India may contain grams of silver in wiring, sensors, battery connectors, etc.
- Manufacturing localization – As India develops solar and EV component factories, it transitions from being a consumer of silver to a user and value creator.
IndiaGraphs Projection: Silver Demand 2030 Scenario
Looking ahead, IndiaGraphs models three possible demand outcomes based on current industrial growth trends.
If industrial demand in solar and EVs grows at 10–12% annually (in line with 2024–25 trends) and technological substitution remains modest, India could be entering a new phase of structural demand.
- PV demand alone could reach 10,000–14,000 tonnes annually by 2030.
- EV and electronics consumption may match or surpass PV demand, as electrification deepens.
- Domestic silver use could triple, turning silver from a complementary metal into a strategic industrial input.
- Rising imports might pressure India’s trade balance or raise project costs in renewables and mobility.
If these trends persist, silver could transition from a co-material to a core material in India’s energy and manufacturing economy.
Final Thought
Silver isn’t just shining now – it’s working.
Its journey from temple decoration to wiring in electric cars mirrors India’s own transition from tradition to technology.
For India, investing in silver demand through EVs and solar isn’t a passing trend – it’s a strategic lever driving the nation’s industrial and energy ambitions.
If you build 100 GW more solar or 50 million EVs, you also build tons of silver consumption. The metal’s future isn’t just financial – it’s foundational.
Silver’s evolution from ornament to engine captures the essence of India’s economic transformation – where tradition fuels technology.
Source: The Silver Institute, World Silver Survey 2024
FAQs on Silver Demand, Supply & India’s Industrial Shift
Why is silver demand rising globally?
Global silver demand is being driven by the energy transition – especially solar photovoltaics (PV), electric vehicles (EVs), and electronics.
Silver’s unmatched electrical and thermal conductivity make it essential for solar cells, battery connectors, and semiconductors
How much silver does India consume?
India’s total silver demand has more than doubled since 2018, reaching around 170 Moz in 2024F.
India now makes up 14% of global silver demand, driven by solar installations, jewelry, and investment bars.
How dependent is India on silver imports?
India imports over 80% of its silver needs, as domestic mining is limited.
In 2023, imports crossed 110 Moz, one of the highest levels on record. Rising industrial demand in solar and EV sectors is likely to push imports even higher in coming years.
How much silver is used in solar and EVs?
Each gigawatt of solar capacity requires roughly 80–100 tonnes of silver, while every EV uses 20–50 grams in wiring, sensors, and battery connectors.
Globally, solar PV already consumes about 17% of all silver, and by 2030, it could reach 30–40% of total supply.
What does the future of silver look like for India?
If industrial silver demand grows by 10–12% annually, India could see domestic silver use triple by 2030, making it a strategic industrial metal rather than just an ornamental one.
However, supply constraints and import dependence remain major challenges.
