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Byproduct supplyAnode slime routeParkes processSintered die-attachSolar competition

Roughly three-quarters of the world’s silver is produced by mines that are not looking for silver. It comes out alongside lead, zinc, copper and gold, and that single fact breaks the normal economics of the metal.

4.1Where silver actually comes from

Lead–zinc mines31 %Primary silver mines27 %Copper mines24 %Gold mines14 %Other4 %≈ 73 % of world silver is produced by mines that are not looking for silverConsequence: if the silver price doubles, a lead–zinc mine does not mine more. Supply is largelyprice-inelastic, so demand shocks clear through price and inventory instead of new production.
Figure 4.1Approximate shares of roughly 25,000 tonnes of annual mine supply. KGHM in Poland is one of the world's largest silver producers and is a copper company. Mexico, Peru and China lead; Chile and Poland follow.

KGHM in Poland is one of the world’s largest silver producers and is a copper company. Mexico, Peru and China lead; Chile and Poland follow.

4.2Supply that ignores price

In plain English

If the silver price doubles, a lead-zinc mine does not mine more, because its economics are set by lead and zinc. Only about a quarter of supply comes from primary silver mines that respond to the silver price at all.

Supply is largely price-inelastic, so demand shocks resolve through price and inventory rather than through new production — the opposite of how most commodity markets are taught.

4.3The technical route — out of copper’s anode slime

  • 1 · Anode slime collection. Copper electrorefining leaves 2–10 kg of slime per tonne of copper, containing Ag, Au, Pt, Pd, Se, Te and Cu.
  • 2 · Decopperising leach. Slime leached with H₂SO₄ and air to remove residual copper.
  • 3 · Selenium removal. Ag₂Se + O₂ → 2 Ag + SeO₂↑. Selenium volatilises and is captured; it is itself a valuable byproduct.
  • 4 · Smelting to doré. Residue smelted to a doré bar — a rough Ag-Au alloy, typically 90–95 % silver.
  • 5 · Electrolytic refining. Moebius or Thum Balbach cell, AgNO₃/HNO₃ electrolyte → 99.9–99.99 % silver crystal. Gold does not dissolve and drops out as slime — again.

4.3.1The older route, from lead

From lead smelting the route is different and older: the Parkes process adds zinc to molten lead, silver preferentially dissolves into the zinc, the zinc-silver crust is skimmed and the zinc distilled off. What remains is refined by cupellation — oxidising the lead away in a porous vessel, a technique in continuous use since the Bronze Age.

4.4Where it goes in a vehicle

Important

Only 25 to 50 grams per car, but in places with no substitute: sintered silver die-attach under SiC power modules, where silver’s thermal conductivity and its ability to sinter below its melting point make it the only practical bond for a device that cycles hard and runs hot. Plus relay and connector contacts, and conductive pastes.

The larger story is next door. Solar cell metallisation consumes a large and growing share of world silver, and it competes for the same metal — against a supply that, as established above, does not answer the price.

Quick check: test yourself

1.A shortage develops in silver. How does the market clear it?

Show answer
Through price and inventory rather than new mine supply. About 73 per cent of silver comes from mines whose economics are set by lead, zinc, copper or gold, so those operations do not respond to the silver price. Only the quarter that is primary silver responds at all.

2.Why is sintered silver used under SiC power modules rather than solder?

Show answer
Because it sinters below its melting point and has exceptional thermal conductivity, which makes it the only practical bond for a device that cycles hard thermally and runs hot. The quantity is tiny — 25 to 50 grams per vehicle — but there is no substitute in that role.

3.Where does silver appear in the copper chain, and where does it not?

Show answer
It appears in anode slime from electrorefining, which is the largest single source on earth. It does not appear in the SX-EW route at all, because leaching, solvent extraction and electrowinning never produce an anode and therefore never produce slime.

Chapter summary

Frequently asked questions

Why does the silver price not bring new silver supply?+

Because roughly 73 per cent of world silver is produced by mines whose economics are set by another metal entirely — lead, zinc, copper or gold. If the silver price doubles, a lead-zinc mine does not mine more. Only about a quarter of supply comes from primary silver mines that respond to the silver price at all, so supply is largely price-inelastic and demand shocks clear through price and inventory instead.

How is silver actually extracted?+

Most commonly out of copper anode slime: the slime is leached to remove residual copper, roasted to volatilise selenium as SeO₂, smelted to a doré bar of 90 to 95 per cent silver, then electrolytically refined in a Moebius or Thum Balbach cell with a silver nitrate electrolyte to 99.9 to 99.99 per cent — with gold dropping out as slime again. From lead smelting the route is older: the Parkes process adds zinc to molten lead, silver preferentially dissolves into the zinc, the crust is skimmed and the zinc distilled off, and cupellation oxidises the remaining lead away.

What is silver doing in an electric vehicle?+

Only 25 to 50 grams, but in places with no substitute. The critical one is sintered silver die-attach under SiC power modules, where silver’s thermal conductivity and its ability to sinter below its melting point make it the only practical bond for a device that cycles hard and runs hot. Plus relay and connector contacts and conductive pastes. The larger competition is next door: solar cell metallisation consumes a large and growing share of world silver.

Reviewed by

SG

Sahil Goyal

Co-founder, Wingzman

LinkedIn
SG

Sourabh Goyal

Co-founder, Wingzman

LinkedIn

Ore to Vehicle is an original educational series on the battery and EV materials supply chain. Country shares, grades, prices and policy status are approximate, drawn from public reporting as of mid-2026, and move year to year — treat them as orders of magnitude rather than as a ledger, and verify before relying on them commercially.