The Inflation Reduction Act, Clean Energy and the Demand for Silver.
The Inflation Reduction Act (IRA) will invest $370 billion in clean energy and the infrastructure, industries and jobs that come with it.
The Inflation Reduction Act is a potential game changer for the clean energy industry. The IRA includes tax credits to make electric vehicles more affordable, incentives to install rooftop solar and invests in EV charging infrastructure and the domestic mining of materials needed to make solar panels, wind energy and batteries.
Precious metal sputtering targets and precious metals in general will be essential in a growing number of clean energy applications supported by the Inflation Reduction Act. One of the metals that will be in high demand for the expansion of clean energy infrastructure is silver.
Silver drives electric vehicles, solar panels and battery-powered devices.
The conductivity and corrosion resistance of silver makes it an important component for electrodes and conductors. In fact, according to Forbes, silver is an ideal material for manufacturing EVs – the auto industry already uses more than 55 million ounces of silver every year and almost every electrical connection in EVs uses silver.
As adoption of electric vehicles increases, there will be an increasing need to build out a clean energy infrastructure to power these vehicles. This means more installations of silver intensive solar panels. Energy from the sun and wind is not as predictable as energy created by fossil fuels. More clean energy production will require more storage in the form of batteries. More batteries will mean more electrical connections and a higher demand for silver.
As the automotive industry shifts to 100% electric vehicles, other industries will likely follow. Formerly gas-powered devices like lawn mowers and pressure washers may also move to electricity-only. They will also require more silver.
Could silver rise like palladium?
Less than 20 years ago, palladium was seen as a fairly inexpensive byproduct of copper and nickel mining – and the perfect substitute for more expensive platinum in catalytic converters. Today, the demand for catalytic converters to reduce smog in China, the Russia-Ukraine war and other factors have increased the price of palladium more than 1900%. While silver is far more abundant than palladium, a restructuring of our energy supply could have the potential to disrupt silver markets.
New energy, new opportunities.
This is an exciting time. New technologies are being rolled out on a global scale. Creating a clean energy infrastructure will require partnerships across industries and companies in all areas of the economy. At DHF Technical Products, our specialty is helping sputtering target customers secure a steady, high-quality supply of critical materials during turbulent metal markets. If your manufacturing process depends on precious metal sputtering targets, now is a good time to reevaluate your future needs. Or, as we like to say, “Let’s talk targets.”
