Electric Vehicles Like Tesla’s Cybertruck Could Increase Demand for Silver
New technology is increasing demand for silver.
Like, for instance, the electrification of the vehicles.
In order to electrify cards and trucks, including the new Tesla Cybertruck, manufacturers need silver.
Electric vehicles will only demand more precious metals.
Tesla’s new Cybertruck was announced last week. Its design was inspired by Mars rover.
Ford announced an all-electric F-150, which has been America’s best-selling vehicle of all time.
The electrification of these vehicles will increase demand for silver.
Silver has long had industrial uses, such as photography. Silver was needed to develop the photos.
Photography accounted for roughly 49% of world silver. Now its just 4%, dropping from over 4,500 tonnes to 1,325 tonnes.
The rise of digital cameras changed this. The demand for silver from this segment decreased.
Silver is needed to electrify cards and trucks. Its already used in car electrical systems.
Electric vehicles (EVs) like the Tesla Cybertruck will demand even more silver.
Silver demand from the auto industry is forecast to triple by 2040, representing 15% of the predicted supply.
The auto industry could acccount for almost 2,200 tonnes of silver.
The auto sector currently accounts for about 1,610 tonnes of silver demand.
The industry could be absorbing more than 4,500 tonnes of silver annually, an increase of 3,000 tonnes against today’s levels.
That’s a gain of less than 10% of current global demand.
Currently, silver is priced at just $16.00.