The Omission of Silver from Critical Materials Lists: A Call for Reassessment

Despite its pivotal role in military, industrial, and technological applications, silver has been notably absent from the U.S. Department of Energy (DOE) and U.S. Geological Survey (USGS) 2022 critical materials lists. These lists are designed to identify minerals that are essential to the U.S. economy, national security, and technological advancements. The exclusion of silver, alongside gold, raises significant questions, especially in light of the growing demand for silver across various sectors.

Understanding the Critical Materials Lists

The critical materials lists comprise 50 minerals deemed vital for the U.S. economy and security. These include aluminum, cobalt, lithium, and rare earth elements, among others. However, silver, a metal with extensive applications in electronics, renewable energy, and defense, was conspicuously left out. This omission prompts a deeper examination of the factors influencing such decisions and the implications for future policy.

Why Were Silver and Gold Omitted?

Historical Overreliance on Reserves

One possible explanation for the exclusion of silver and gold is the historical overreliance on domestic reserves and foreign sources. The U.S. has traditionally had access to ample silver reserves, which may have led to a perception that the metal is not "critical" enough to warrant inclusion on current assessments. This historical context could have contributed to a complacent attitude toward silver’s strategic importance.

Classification and Strategic Secrecy

Silver’s critical role in military applications, such as missile guidance systems and defense electronics, may also play a part in its omission. The full extent of military demand for silver is likely classified, which could prevent its inclusion on public lists. This secrecy is intended to protect sensitive information about stockpiles and strategic uses, thereby keeping silver off the radar in critical materials assessments.

Focus on Emerging Technologies

The critical materials lists tend to emphasize elements essential for emerging technologies, particularly those vital to renewable energy and advanced electronics. While silver is integral to these sectors, the focus may have shifted toward less traditional materials that are more immediately relevant to cutting-edge developments. This shift in focus could explain why silver has not been prioritized in recent assessments.

Economic Factors

Another factor influencing the omission of silver is its relatively lower price compared to many of the critical minerals included on the list. Decision-makers may have prioritized more expensive and rarer materials, which are perceived as having a more significant economic impact. This economic lens could lead to a misjudgment of silver’s strategic importance.

Data Limitations

Data limitations may also contribute to silver’s exclusion. The diverse applications of silver across various industries, coupled with the challenges of tracking its use—especially in classified military projects—could hinder its inclusion on the lists. In contrast, many materials on the list have clearer, more direct applications in specific technologies, making them easier to assess.

The Case for Silver’s Inclusion

Despite its omission, silver remains a critical component in numerous sectors:

Military Applications

Silver is indispensable in defense technologies, including missile systems, night vision equipment, and high-end electronics. Its unique properties make it a vital resource for military applications, underscoring the need for its recognition as a critical mineral.

Industrial Demand

The industrial demand for silver is also significant. In 2023, 12% of silver demand came from the solar industry, according to the Silver Institute. This figure is expected to rise as the global push for renewable energy continues. Silver’s role in electronics, medical applications, and other industries further solidifies its importance.

The Need for Reassessment

Given silver’s strategic importance in defense and emerging technologies, its exclusion from the critical materials list warrants reevaluation. With increasing demand and dwindling inventories at major exchanges like the LBMA and COMEX, silver’s role in industrial applications may soon shift its perception from "non-critical" to essential.

Moreover, silver’s price volatility and potential supply disruptions could necessitate further consideration. As the metal plays a crucial role in the clean energy transition and advanced medical technologies, its strategic importance to U.S. national security and economic resilience cannot be overstated.

Push for Silver’s Inclusion by Top Producers

In recent months, several of the world’s leading silver producers have intensified efforts to have silver recognized as a critical mineral in both the United States and Canada. As global demand for silver continues to rise—driven by its essential role in industries such as solar power, electric vehicles, and nuclear energy—key players in the mining industry argue that silver deserves a spot on the critical minerals list.

In a joint letter sent to Canadian Minister of Energy and Natural Resources Jonathan Wilkinson, the CEOs of 19 major mining companies, including Coeur Mining, Hecla Mining, and First Majestic Silver, made a compelling case for silver’s inclusion. Their argument highlights silver’s unmatched properties, including its status as the best electrical conductor, thermal conductor, and reflective material among metals.

Conclusion

The omission of silver from the U.S. critical materials lists is perplexing, especially given its essential role in numerous high-demand sectors. Policymakers should consider reassessing silver’s status to ensure that the United States secures sufficient supplies to meet future needs. A thorough examination of supply chain vulnerabilities, demand trends, and potential geopolitical risks could be instrumental in shaping future policy decisions regarding silver.

As the world moves toward cleaner energy and more technologically advanced defense systems, silver’s strategic importance will only grow. This underscores the need for proactive measures to secure this precious resource, ensuring that it is recognized for its critical role in the economy and national security.

For ongoing updates and insights into precious metals, follow us on X at @JPost_Metals.