Chinese solar manufacturing giant LONGi is set to remove silver from the production of its back-contact (BC) solar cells. This move exemplifies the growing cost pressures and intensifying competition for critical materials across global clean energy supply chains.
The company has indicated it will begin transitioning to base metals as a substitute from the second quarter of 2026, targeting one of the most expensive inputs in photovoltaic (PV) cell manufacturing.
Silver is widely used in PV cells in the form of conductive paste, forming the fingers, busbars and rear contacts that enable current collection. However, surging silver prices have significantly increased bill-of-materials costs for manufacturers at a time when module prices remain under sustained pressure.
At current prices, silver is trading at around AUD $3.76 per gram – more than double levels seen in mid-2025. With industry estimates suggesting roughly 20 grams of silver is used per panel, the metal now represents a material cost burden that is increasingly difficult to absorb in a market where a standard 440 watts module can retail for around AUD $120.
LONGi says base metals can now deliver comparable performance in its high-performance back-contact (HPBC) cell architecture, allowing the company to reduce costs without compromising output.
Savings impact
On a per-unit basis, the saving appears marginal with around 0.43 Australian cents per watt at current exchange rates. But at scale, the impact is substantial.
In 2024, LONGi shipped more than 17 gigawatts (GW) of HPBC modules. Applied across that volume, the material saving equates to approximately AUD $73 million.
For a sector operating on increasingly thin margins, such efficiencies are becoming critical – particularly as manufacturers compete in a globally oversupplied module market while facing rising input costs across logistics, energy and materials.
Solar’s appetite for silver
The move also reflects broader structural pressures in global silver markets.
According to the International Precious Metals Institute (IPMI), photovoltaic manufacturing consumed around 6,577 tonnes of silver in 2024, accounting for roughly 19 per cent of total global silver demand.
Recent research suggests that by 2030, silver supply may only meet 62-70 per cent of total demand, with total annual demand projected to reach 48,000-54,000 tonnes. The same study forecasts solar as the fastest-growing source of silver demand, potentially reaching 10,000-14,000 tonnes per year (up to 41 per cent of global supply).
While improved materials efficiency, recycling processes and substitution technologies may ease some of this pressure, manufacturers are increasingly seeking to reduce exposure to constrained and volatile commodity markets.
LONGi is not alone in this shift, with multiple major cell producers pursuing copper-based or hybrid metallisation pathways, including AIKO Solar, Tongwei Solar and Risen Energy.
The materials transition comes as LONGi continues to diversify its business and rebalance its geographic focus.
In late 2025, the company entered the energy storage market through the acquisition of Canadian firm PotisEdge, subsequently formalising a strategic collaboration. PotisEdge has deployed more than 12 gigawatt-hours of energy storage and battery systems globally, with a reported record of zero thermal runaway incidents.
PotisEdge already manufactures residential battery systems, including the ALOE Pro, which is approved by the Clean Energy Council for use in Australia.
LONGi has indicated it will prioritise its domestic market alongside Europe, the United States and Australia as it expands its downstream energy solutions portfolio. Between January and September 2025, LONGi shipped 38.15 GW of wafers, 63.43 GW of cells and modules, and 14.48 GW of back-contact modules.