Due to the scale of advanced technology being used in electric vehicles, the demand for silver in the automobile industry is going to increase rapidly in the coming years. This simply means that investing in silver as an asset class can provide excellent returns.
The global consultancy firm Silver Institute has recently released a report titled ‘Silvers Growing Role in the Automobile Industry’. It has a deep analysis of the new trends in the automobile industry, including battery-powered electric and hybrid vehicles. According to this, roughly 15-28 grams of silver is currently used in every light vehicle. About 20 percent more is used in mild-hybrid vehicles and even more (35 percent silver is used in full hybrid vehicles), so the use of silver per light vehicle has gone up to 18-34 grams.
The report shows a particular trend, which is a direct indication that the demand for silver in the automobile industry will increase in a phased manner from year to year in the coming years. In comparison to ICE vehicles, silver is used more in hybrid vehicles. Then there is a greater need for silver in battery-powered electric vehicles than hybrid vehicles, and self-driving cars have the highest consumption of silver.