Silver Jumps 108% to Hit ₹1.92 Lakh/kg as Demand Booms from EVs, Solar and Data Centres

Silver prices continued to soar in 2025, touching new highs in both global and domestic markets. The metal has doubled this year, rising from $50 to $61 per ounce, and in India from ₹1,58,000 to nearly ₹1,92,000 per kg within just 12 trading sessions. 

Why Silver Is Rising So Fast

Silver’s jump is driven by its increasing use in solar panels, electric vehicles (EVs), charging networks, data centres, and AI-related infrastructure. The Silver Institute said that silver’s excellent electrical and thermal conductivity makes it critical for new-age technologies.

Solar Sector

Solar panels remain one of the biggest consumers of silver. Even though the amount of silver per panel is reducing, overall installation growth is strong enough to keep demand high. Falling subsidies in some countries may slow growth, but many nations are pushing aggressive renewable targets that support demand.

Electric Vehicles

EVs use 67%–79% more silver than petrol or diesel vehicles, mainly in battery systems, power electronics and charging equipment. Each EV needs 25–50 grams of silver. Automotive silver demand is expected to expand steadily till 2031, with EVs becoming the main driver of consumption by 2027.

Data Centres and AI Infrastructure

The rapid growth of data centres and AI computing is another major demand booster. Global IT power capacity has risen from 0.93 GW in 2000 to nearly 50 GW in 2025, a massive jump. Countries like the US, UK, Europe and China are offering incentives to attract more data-centre investments, creating rising demand for silver-intensive hardware.

How Much Has Silver Gained?

• Spot silver has jumped 108% this year.
• In India, prices climbed from ₹85,851/kg last December to ₹1,78,861/kg on December 9.
• Gold has also risen, but silver has far outperformed it.

Silver’s inclusion in the US critical metals list, strong ETF buying, rising central bank purchases, and a persistent supply shortage have all fuelled the rally.

The gold–silver ratio has dropped from 107 in April to 68.66, showing silver’s improving strength.

Read More: Best Gold Mutual Funds in India for Dec 2025!

Conclusion

Silver’s powerful rally in 2025 is driven by real, long-term industrial demand, from EVs to solar power to rapidly expanding data centres. As the world shifts toward cleaner energy and digital infrastructure, silver is set to remain a crucial metal. 

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