Silver Shortage Looms as Demand Skyrockets in Solar, EVs, and AI

A perfect storm of surging demand and tight supply is driving silver prices higher. Without action, Europe's green and tech sectors could face crippling shortages.

, and Administrator

2026 February 5 . 5:14 AM

1 min read

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Silver Price Rally - What Experts Are Calling For Now - Silver Shortage Looms as Demand Skyrockets in Solar, EVs, and AI

Silver demand is climbing sharply, yet supply struggles to keep up. The metal's role in solar panels, electric vehicles, and artificial intelligence has pushed consumption to record levels. Now, experts argue the EU and Germany must act to secure stable access—before shortages worsen.

Over the past five years, global silver use has exploded. In photovoltaics, demand jumped from around 120 million ounces in 2021 to over 300 million ounces today, driven by surging solar panel production. Electric vehicles now consume roughly 120 million ounces annually, up from 40 million, as batteries and electronics rely more on the metal. Even artificial intelligence has entered the mix, with data centre hardware pushing demand to about 20 million ounces—almost nonexistent just years ago.

China leads as the top importer across all sectors, followed by the US, India, Germany, and Japan. But supply growth remains slow, and geopolitical tensions are tightening the market. China's control over production and the US stockpiling reserves have created bottlenecks, leaving Europe vulnerable.

Industry insiders warn that rising prices and volatility stem from this imbalance. They urge Germany to build a state reserve for critical metals or simplify private investment rules. Proposed solutions include scrapping VAT on silver coins and bars, as well as setting up duty-free storage zones for investment metals. The goal: make it easier to stockpile silver before shortages hit harder.

The EU and Germany face growing pressure to classify silver as a critical raw material. Without intervention, supply risks could disrupt key industries like renewable energy and tech. Policymakers now weigh measures to boost reserves and ease investment—before the gap between demand and supply widens further.