Mei Ri Jing Ji Xin Wen·2026-02-11 11:00Core Viewpoint - The Chinese photovoltaic industry is facing significant cost pressures due to soaring silver prices, which have become a critical material for battery metallization, impacting profit margins and pricing strategies across the supply chain [1][2]. Group 1: Silver Price Impact - Silver prices have been on the rise, with futures reaching 32,400 yuan per kilogram and spot prices hitting $121.64 per ounce by the end of January [1]. - The demand for silver in the photovoltaic sector has surged, consuming over 6,000 tons annually since 2020, accounting for nearly 20% of total silver demand [1]. - The cost of silver paste has increased, raising the complete cost of battery cells to over 0.5 yuan/W, while module costs have surpassed 0.9 yuan/W [2]. Group 2: Cost Transmission and Market Dynamics - The increase in silver prices has led to a "scissors gap" between raw material costs and end product prices, squeezing profit margins for manufacturers [3]. - As of early February, silver prices experienced volatility, with futures dropping to 20,600 yuan per kilogram, leading to a decrease in battery and module prices [3]. - The domestic market is witnessing a decline in project order execution, with new orders showing limited visibility, while overseas markets are expected to dominate shipments in the first quarter [4]. Group 3: Technological Responses and Innovations - Companies are pursuing technological upgrades to mitigate cost pressures, with Longi Green Energy planning to scale up "cheap metallization" technology by Q2 [5]. - Aiko Solar has implemented a silver-free coating technology, significantly reducing silver usage and costs, while other firms are optimizing silver consumption through various techniques [5][6]. - The future outlook for silver prices suggests a sustained high level due to increased industrial demand and a widening supply-demand gap [6]. Group 4: Market Outlook and Demand Projections - The global demand for silver in photovoltaic applications is projected to decrease by 10% in 2026 compared to 2025, estimated at around 6,500 tons [6]. - The "space photovoltaic" concept, while gaining attention, is still in the ground verification stage and is not expected to significantly impact silver demand in the near term [6].