Kathmandu. Demand for electric vehicles (EVs), solar power, data centers, and artificial intelligence (AI) is growing rapidly in the global market. The demand for EVs, solar power, data centers and AI has increased due to which the price of silver has been affected.

As the demand for EVs, solar power, data centers and AI is increasing in the global market, the price of silver is increasing in proportion. For the past half a decade, the demand for EVs, solar power, data centers and AI has been increasing in the global market.

Industries are embracing digital innovation and promoting clean energy use. As a result, the demand for silver is expected to be high. A joint study by The Silver Institute in the US and London-based Oxford Economics has concluded that the use of silver and its role in modern technology is becoming decisive. The study described silver as a “next-generation metal” due to its high electrical efficiency, excellent heat, and corrosion resistance.

According to the study, the mentioned sectors will make significant strides in the next 5 years. This will increase the demand for silver worldwide.

Electric vehicles becoming the new center of silver consumption

Battery-powered electric vehicles (EVs) consume 67 to 79 per cent more silver on average than fuel-powered vehicles, according to the study.

According to the study, the average silver fuel per vehicle is 15 to 28 grams, hybrid vehicles 18 to 34 grams and electric vehicles 25 to 50 grams.

The amount of silver used in hybrids is more than fuel, and in EVs, almost twice as much as in hybrids.

The main reasons for the increase in the consumption of silver in electric vehicles are battery management systems, increasing electric connections, inverters, inverters, charging modules, and power electronics systems that require high efficiency. High use of silver reduces energy loss and allows for faster charge. According to the study, the use of silver is also high.

By 2027, electric vehicles will be the main source of demand for silver in the automotive sector. By 2031, its share is expected to reach 59 percent. At the same time, the use of silver in charging infrastructure has also increased rapidly. Silver coating is mandatory at charging cables, connects and charging points. Due to this, the use of silver is increasing tremendously.

With the increase in sophisticated electronic components such as sensors, rearview cameras, smart displays, security systems, etc. in electric vehicles, the consumption of silver has increased even more. The demand for silver is structurally increasing as electric vehicles are not only changing the engine but also becoming a fully digital platform. Due to which the demand for silver and the market price are also skyrocketing.

Demand for silver in the automotive industry is expected to grow at the rate of 3.4 percent annually in the next five years. EVs are expected to account for 59 percent of the total silver demand by 2031.

Demand for silver in solar energy is increasing

Global photovoltaic (PV) capacity has increased more than 10-fold in the last decade. At the same time, the demand for silver used in solar panels has increased three-fold. The demand for silver was 11 percent in 2014. Solar energy accounted for 29 percent of the total share in 2024.

Solar energy is expected to become the world’s leading renewable energy source by 2030. Its capacity is projected to increase by 17 percent annually. This is likely to increase the long-term demand for silver. The European Union aims to provide at least 700 GW of solar capacity by 2030. This will increase the consumption of silver even more.

Demand for silver in data centers and AI is high

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Today, data centers and AI are considered the backbone of the digital economy. Data centers and AI hardware have increased the demand for silver exponentially.

Between 2000 and 2025, global IT power capacity increased 53-fold to about 50 GW. This means that the use of silver in additional servers, circuits, connected and cooling systems will inevitably increase.

According to the study, data centers need high reliability and low energy loss to maintain 99.999% uptime. Silver is also widely used in the internal connection and packaging of high-performance semiconductors such as GPU, TPU, NPU, NPU, which is essential for AI. Between 2010 and 2024, the amount of computing required to train AI models increased 4-5 times annually.

According to the study, global industrial silver demand in 2024 is set to reach a record 680.5 million ounces. Electronics and hardware are key in AI. In the United States alone, data center construction is expected to increase by 57 percent in the next 10 years.

Today, data center computing capabilities are focused on three areas. Data centers in the north, the Americas, Western Europe, and East and Southeast Asia account for 88 percent of global computing capacity. The demand for digital services is increasing in new regions, including Latin America and South Asia.

The use of silver is increasing in the world, from solar panels to electric vehicles, charging stations and AI chips.

Price increase in international markets in 5 years

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In the international market, the price of silver has increased by 267 percent in the last five years. The price of silver has increased by 66.44 per ounce in five years. In the past one year, the price of silver has increased by $ 60.57 per ounce. The price of silver has increased by 196.49 percent in a year. In the international market, silver has increased by 141.44 percent.

The price of silver has increased by $ 24.77 in the last one month. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price of silver has increased by Rs 1,300 per tola in the last one month. KATHMANDU: Price of silver has reached all-time high in Nepal along with the rise in the price of silver in the international market.

There is no production and mining of silver in Nepal. Nepal imports silver from the international market. Silver is produced and mined in China, Mexico, Peru, Russia, Australia and other countries.

Electric car hub

China is the largest producer of electric vehicles in the world. In China, many big, world-famous companies including BYD, SAIC Motor, Geely Automobile, Neo, Xpeng are producing electric vehicles on a large scale.

The United States is the second largest producer of EVs after China. In the US, many big companies including Tesla, Ford, General Motors are making electric vehicles. Germany is also considered to be the leader in the production of electric vehicles.

In Germany, electric vehicles are produced by companies such as Volkswagen, BMW and Mercedes-Benz. Toyota and Nissan in Japan and Hyundai and Kia in South Korea are developing electric vehicles.

India is also ramping up electric vehicle production in South Asia. Tata Motors, Mahindra and Maruti Suzuki are among the major manufacturers in India.

Electric vehicles are also being produced in countries such as Britain, France, Italy, Mexico and Thailand.

Which country is the most used electric vehicle?

According to the latest statistics, China has become the world’s largest consumer of electric vehicles. China leads the world in the production, sales and use of electric vehicles. The United States is the second largest market for electric vehicles after China. Electric vehicles are widely consumed in countries such as Germany, France, Norway and Belgium. Such vehicles are also consumed on a large scale in countries like Japan and South Korea. Countries including India have also been giving special priority to the use of EVs in recent years.

Countries that increase the production and consumption of EVs, AI, data centers, and solar energy will become increasingly powerful in the global economy. Studies have shown that such countries are gradually increasing the consumption of silver. According to various studies, the price of silver is expected to rise further.