The automobile industry is increasingly relying on silver, making it a critical component in modern vehicles. From traditional wiring to advanced electric vehicle (EV) systems like batteries, ECU, ABS, and infotainment, silver ensures efficient conductivity and reliability.
Automotive Sector Sees Silver as Key Metal for Electric Vehicle Growth
New Delhi: Silver prices have been rising for the past year, driven primarily by increasing industrial use, not just jewelry. Silver's use in mobile phones, solar panels, and electric vehicles (EVs) is steadily increasing. This metal has now become the backbone of technological change in the auto industry.
The use of silver in cars is not new. It has been used in lights, reflectors, and other electronic components for over 100 years. However, with the advent of electric and hybrid cars after 2010, its use has increased rapidly. While petrol-diesel cars typically use 15-20 grams of silver, EVs use 25-50 grams.
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According to brokerage firms, electric vehicles use 67% to 79% more silver than petrol-diesel cars. Experts believe that by 2027, EVs could become the largest driver of silver consumption in the auto sector.
Infotainment Systems
ABS and Airbag Systems
ECU (Engine Control Unit)
Power Windows and Central Locking
Battery Management Systems
Power Electronics
Charging Systems
High-Voltage Connections
Silver is used not just for hobby purposes, but also for its high electrical conductivity and durability. It is used in wiring, switches, electrical contacts, and circuits to ensure quick and uninterrupted signal transmission.
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According to Oxford Economics, global silver demand in the automobile industry will grow by an average of 3.4% annually from 2025 to 2031. It is estimated that it could reach 3,000 tons per year by 2031. Currently, the global auto industry uses approximately 1,700-2,500 tons of silver annually. The growing number of electric vehicles will further boost this demand.
As cars become more high-tech and electric, the demand for silver is also increasing. Its prominent role in EVs makes it a vital part of the future auto sector. Automobile and technological advancements have made silver not just a jewelry item but an essential metal in modern vehicles.
