Samsung SDI Ramps Up Fundraising for Battery Capacity Expansion How Will Silver Demand Fare for Super-Gap Solid-State Batteries? [SMM Analysis]

Published: Mar 20, 2025 21:21

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[SMM Analysis: Samsung SDI Ramps Up Fundraising for Battery Capacity Expansion How Will Silver Demand Be Affected by Super-Gap Solid-State Batteries?] On March 14, SAMSUNG SDI announced that the company would start a rights issue to raise an estimated 200 billion won ($1.38 billion) in capital for its future competitiveness and medium and long-term growth. As the Super-Gap solid-state battery uses a silver-carbon composite material as the anode, it can effectively regulate lithium deposition without the need for excess lithium metal. The entry of this technology into mass production is expected to bring new growth in silver consumption, which is one of the supporting views for a bullish outlook on silver prices in the medium and long term.

On March 14, SAMSUNG SDI announced that the company would start a rights issue to raise an estimated 200 billion won (1.38 billion US dollars) in capital for its future competitiveness and medium and long-term growth. As the Super-Gap solid-state battery uses a silver-carbon composite as the anode, effectively regulating lithium deposition without the need for excess lithium metal, the technology's entry into mass production may bring new expectations for increased silver consumption, supporting a bullish view on silver prices in the medium and long term.

SMM has compiled and traced the development and planning of SAMSUNG SDI's Super-Gap solid-state battery. In terms of silver consumption, although Samsung has not released official data, experts estimate that this type of solid-state battery may require 5 grams of silver per unit, with a typical EV battery pack needing 200 cells, amounting to 1 kilogram of silver. With silver prices at record highs, this could mean that the cost of silver alone in a car battery pack exceeds 1,000 US dollars.

Technically, the battery uses argyrodite, a sulphide solid electrolyte, solving issues of lithium dendrite growth and low coulombic efficiency, achieving true long cycle life. However, the use of argyrodite, a scarce resource, means that the mass production of this battery will face relatively high and more volatile raw material costs. According to conservative estimates by Samsung SDI, the market size for all-solid-state batteries may reach 40 GWh by 2030, with SMM estimating that it could lead to over 500 mt of refined silver consumption in the all-solid-state battery sector. Although there is no officially announced selling price for all-solid-state batteries yet, it is expected that initially they will remain expensive, likely used only by a few luxury brands or car models. Additionally, the infrastructure required for fast charging and the burden of production costs may also be obstacles limiting their mass production in the short term.

The rise of the Super-Gap solid-state battery is one of the bullish stories for a medium and long-term surge in silver prices, but its impact on traders in the short term is limited. Moreover, as various anode materials are currently under development, whether the silver-carbon composite anode becomes mainstream still needs a longer time for validation. Only when silver is proven to be the most efficient material in solid-state batteries and achieves mass production, might we see a faster increase in silver consumption.

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