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Samsung has reportedly had a major breakthrough in their research of solid state batteries and the latest success is a silver solid state battery. This breakthrough could massively increase the demand for silver and the send the price considerably higher.

Specifically, Samsung has explored the use of silver-carbon (Ag-C) composite anodes in its all-solid-state batteries.

Key Features and Benefits

• Range and Lifespan: Samsung’s solid-state batteries promise an impressive 600-mile range on a single charge and a lifespan of 20 years.
• Charging Time: These batteries can charge in just nine minutes, addressing one of the major hurdles in EV adoption.
• Energy Density: With an energy density of 500 Wh/kg, these batteries are nearly twice as dense as current mainstream EV batteries, allowing for longer travel distances in a smaller, lighter package.
• Safety: The use of a solid electrolyte instead of a liquid one reduces the risk of fires, making these batteries safer than traditional options

Impact on the Silver Market

The introduction of Samsung’s solid-state batteries could have a substantial impact on the silver market. It is estimated that each battery cell may require up to 5 grams of silver, leading to a potential demand of 1 kg of silver per vehicle for a 100 kWh capacity battery pack. If 20% of the global car production (approximately 16 million vehicles) adopts this technology, the annual silver demand could reach 16,000 metric tons.

This would represent a significant portion (64%) of the current global silver production, which is approximately 25,000 metric tons annually, highlighting the substantial impact on the silver market. If this new silver solid state battery technology gains traction and just 32% of global car production were to use it over time, that would require ALL of the current silver production to meet this demand!

This comes at a time when silver is already in a deficit with industrial demand from the solar industry pushing total yearly consumption ahead of supply. Economics 101 teaches that with demand rising much faster than supply, prices are likely to move significantly higher. And the silver price has some catching up to do. While gold has been making a series of new record highs recently, silver is still trading 40% below record highs and needs to climb roughly 68% to return to prior record prices at $50 per ounce. And this is just the nominal price record. When adjusted for inflation, the price of silver needs to climb toward $200/oz to reach an equivalent price level as the 2011 high of $50.

Put simply, there is massive upside potential and very little downside risk to the silver price. These are precisely the types of asymmetric trades that investor dream of identifying. The chart also looks very bullish with a series of higher lows since 2020 and a recent breakout to a higher high above strong resistance.

Key Findings

1. Ag-C Composite Anode: Samsung’s researchers proposed using a silver-carbon (Ag-C) composite layer as the anode in all-solid-state batteries. This innovation aims to overcome the issues of dendrite growth and low Coulombic efficiency, which impede the practical application of lithium metal anodes.
2. High-Performance Prototype: A study published in “Nature Energy” in 2020 reported an exceptional high-performance prototype solid-state pouch cell made with a sulfide electrolyte, a high-Ni layered oxide cathode, and an Ag-C composite anode with no excess Li.
3. Potential Impact: The use of Ag-C composite anodes in Samsung’s solid-state batteries could lead to safer, high-performance batteries with improved lifespan and reduced risk of thermal runaway.

According to a report written by Enrico Punsalang at Ride Apart, Samsung is already working with big automakers to incorporate its SS battery tech into EVs in development. The firm has signed an agreement with Toyota to begin mass production of SS batteries in 2027, with Lexus vehicles scheduled to be among the first to integrate the new technology.

This technological breakthrough in the battery and electric vehicle market is likely to have a significant bullish impact on the silver market and the electrification of vehicles. While we may not see production vehicles with these new solid state silver batteries for a few years, battery makers that understand the significance of this breakthrough are likely to start accumulating and stockpiling silver at the currently low prices before others start doing the same.

We have been bullish on silver for a long time, but this latest revelation makes the case for a much higher silver price even stronger. We advocate for holding some physical silver in your possession, some in the form of a silver ETF, and for leveraged gain, silver mining stocks that are undervalued relative to their peers and relative to the ounces they have in the ground. Holding a combination of physical silver, ETF silver, and silver mining stocks should be a recipe for outsized gains over the next 5 years.

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