CICC: High silver prices are forcing industrial change, ushering in the "copper" era of the photovoltaic metal revolution.

CITIC Securities Research Report states that the recent increase in silicon and silver prices has intensified the pressure on profits for photovoltaic battery and component companies. Since 2019, there has been a supply-demand gap for silver that continues to this day. Considering the rigid supply of silver and the increasing demand for emerging applications that require silver, it is expected that the supply and demand for silver will be in a tight balance in the long term. To control costs and reduce silver consumption has become a top priority for photovoltaic battery and component companies, with copper being the most ideal alternative material. The key issues to be solved are the oxidation and diffusion problems of copper. The PCB, MLCC, and semiconductor industries already have ample experience that can be used as references for the photovoltaic industry. Currently, the silver-plated copper and electroplated copper solutions are advancing relatively quickly in the photovoltaic industry, with pure copper slurry being the ultimate goal but with many issues still needing to be addressed. Assuming that by 2026-2027, the penetration rates of silver-plated copper and copper slurry will reach 17.7% and 43% respectively, corresponding to production volumes of 813 and 2188 tons of slurry, this will bring significant performance elasticity to slurry companies and metal powder companies.