Most of silver's 2026 story has been told from the supply side: a sixth straight year of structural deficit and a record price near $121 in January. Less examined is where the next leg of industrial demand actually comes from. With solar, silver's largest industrial use, now facing thrifting and substitution, the Silver Institute points to a quieter end-use picking up the slack: the automotive sector. A December 2025 study from Oxford Economics and the Silver Institute quantifies that shift, and the engine behind it is the electric vehicle.
The Per-Vehicle Math
The reason electrification moves the needle comes down to silver content per vehicle. According to the Oxford Economics and Silver Institute report, an ICE vehicle contains an estimated 15 to 28 grams of silver, a full hybrid 18 to 34 grams, and a battery electric vehicle 25 to 50 grams. At the lower bound, BEVs consume 67% more silver than ICE vehicles, rising to 79% at the upper bound, reflecting silver's role across battery management systems, inverters, and charging modules. The Silver Institute estimates over 60 million ounces of silver are used annually in motor vehicles today.
2027: The Crossover Year
The forecast's central milestone is a reversal of ranking. In 2024, ICE vehicles accounted for 55% of automotive silver demand, with EVs second at 30%. Because BEVs are both more silver-intensive and the fastest-growing segment, the report forecasts EVs will overtake ICE vehicles by 2027 and reach 59% of the total by 2031. That rests on global EV production rising at a 13% compound annual rate through 2031, after EVs grew to 21% of light-vehicle production in 2024 from just 3% in 2019. The aggregate result is automotive silver demand reaching roughly 94 million ounces by 2031.
Charging Stations, Sensors, and the Headwinds
Two secondary trends add to the picture. The report notes that charging stations rely on silver contacts and silver-plated cables, with the global stock of public charging points up 33% in 2024. It also links rising silver use to growing electronic complexity, from driver-assistance sensors to a possible move toward autonomous driving, a theme that extends into the battery cell itself in our coverage of Samsung's silver-carbon solid-state battery.
The report does not present a one-way trajectory. In the US, the $7,500 new and $4,000 used EV tax credits ended on September 30, 2025, and the EU imposed tariffs of 17.8% to 45.3% on Chinese BEV imports. Automakers are also consolidating electronic control units, which could reduce per-vehicle loadings. The authors conclude these factors slow, but are not expected to reverse, electrification.
A Third Demand Pillar
At roughly 94 million ounces by 2031, autos would remain smaller than solar or broader electronics. The report's projection is for automotive demand to grow steadily over the forecast period, and to do so increasingly through EVs, which carry more silver per unit than the ICE vehicles they replace. The report does not quantify what this means for the overall supply-demand balance, and the per-vehicle estimates carry wide bands.
