The market for silver conductive inks will almost triple during the next eight years to reach $2.4 billion by 2015 claim industry experts. Any reduction in the price of silver can lead to substantial savings for a high volume manufacturer so the recent fall in the price of sliver of over 50% to under $10/oz will be good news for the printed electronics industry. However, with the global markets so volatile several factors come into play when looking at the possible future price of silver and its impact on the industry.
Source: Kitco
Silver production
According to leading experts before the global economy started to slump, world silver production was expected to grow by 6.5% in 2008, faster than last year's increase of between 3.6% and 4.1%.
Global silver mine production rose by 4 percent in 2007, with particularly solid gains from Chile, China and Mexico. Total silver mine production reached 670.6 million ounces last year. Peru was the world's biggest silver mining country in 2007, followed in the rankings by Mexico, China, Chile and Australia. Last year, silver generated at primary mines drove global totals higher, increasing by 11 percent to account for 30 percent of all silver mined. Cash costs at primary silver mines rose to a weighted average of US$1.52 per ounce, driven by a combination of labor, consumables and energy cost rises.
Source: The Silver Institute
Two-thirds of the world's silver is produced as a by product of other metals, but now, because of the slowing global economy, several zinc mines, which produced silver as a by-product, have closed already. Oz Minerals is cutting zinc production at its Golden Grove Mine Australia by 35%. Some of the larger mining companies are also cutting back on capital expenditure. Although Hochschild have completed expansions which will increase the group's plant capacity by 29%, they are also putting several long-term projects on hold so as the global economy worsens, we're likely to see silver production decrease.
Silver demand
The Institute of Silver claim that the demand for silver last year grew by 7% in the industrial sector - A key factor behind the increase was the more than 6 percent rise in the electrical and electronics sector. IDTechEx believe that in these uncertain times Printed Electronic companies will accelerate their move into the future with the rush of giant companies like BASF which will continue the growth in demand for silver. Overall demand for silver is affected by other sectors as seen in the graph below:
India, China and the United States accounted for 70 percent of the world rise in all industrial uses, while Germany, Italy and France also posted gains. Total industrial demand reached 54 percent of total global silver fabrication demand in 2007.
Silver inks and its applications
Silver is highly conductive and functions better than other metals under oxidative conditions.
Silver inks are increasingly being used for membrane switches, electrical circuits in printed electronics and printed RFID antennas. For example conductive inks can be used for connections on smart blister packs which record when a pill is popped (because a circuit is broken) and for tamper evidence packs which work on a similar principle. Tens of millions of printed battery testers have been sold based on conductive inks. Now we also see companies like Bayer MaterialScience who have developed silver inks designed for the new generation of ink-jet printers which are particularly useful for printed electronics applications such as sensors, actuators and RFID systems.
One start-up company NanoMas Inc who develops inks containing silver nanoparticles has received $3.2 million funding from BASF Venture Capital GmbH, Ludwigshafen and other investors including Earthrise Capital Partners, LLC and NanoMaterials Investors, LLC. NanoMas will use the funds to expand its nanoparticle production capacity, invest further in research and development, and to support the marketing of its silver inks.
The US startup's silver nanoparticles are suitable for use in transistors, conductors and semiconductors. The NanoMas chemical process enables the silver nanoparticles to be processed at low temperatures, thereby increasing efficiency and lowering cost. The process is also ideal for printing electronics on temperature-sensitive materials such as paper and plastics.
Revenues from silver inks for RFID antennas alone are predicted to exceed $880 million by 2015 say one source.
ASK of France is a manufacturer of contactless microprocessor smart cards, contactless cards and paper tickets and RFID smart paper labels. They use conductive silver inks for printing antennas on paper to produce high volumes of cards and tickets based on traditional printing techniques at a significantly lower cost than any other technology available while providing better mechanical performance and thus greater reliability of the card at the same time. This technology is used for all types of cards from high-end to low-end.
Silver and the environment
Another cost that needs to be addressed is the impact of silver on the environment.
A recent study by University of Missouri has shown that silver nanoparticles destroy benign bacteria employed across the US to remove ammonia from the wastewater treatment system.
Zhiqiang Hu, an MU civil and environmental engineering assistant professor has found that silver nanoparticles are extremely toxic. He says that nanosilver particles generate more unique chemicals - known as highly reactive oxygen species - than do larger forms of silver. Those chemicals likely inhibit bacterial growth.
Regulatory bodies so far have not felt the need to regulate the use of silver nanotechnologies but this could all change. A report released earlier this month "Silver Nanotechnologies and The Environment," argues that workers, consumers, lakes and streams are being exposed to nanosilver which includes silver nanoparticles. The report suggests mandating that manufacturers test their nanoproducts for health and environmental effects although it also states that there are no examples of adverse effects from nanosilver technologies occurring in the environment at the present.
In a major reversal, the U.S Environmental Protection Agency has determined that clothes washing machines that use silver ions as a disinfectant will have to be registered as a pesticide. Until now, the agency has not regulated nanomaterials, including silver ions, made of a bioaccumulating, persistent, and toxic metal. Yet EPA's decision may be meaningless, critics point out, because if the company deletes from its advertising the assertion that silver can kill bacteria, it won't have to register the washer.
At the moment there is no legislation or regulatory body in the US for products using silver nanoparticles but companies need to be aware that this may change in the near future with ongoing research.
For more attend Printed Electronics USA 2008 and Printed Electronics Europe 2009.
