I don't think a silver based battery electrode will become the dominant chemistry in the transition to BEV and energy storage, and I wouldn't be buying MYL on that hypothesis.
There are players that have been putting serious R&D effort into increasing energy density of existing lithium based battery chemistry for the past 10+ years.
You have nickel based lithium battery chemistry (NMC, NCA) that are on accelerating reducing cost curves. Industry leaders are currently outputting 220 - 250wH/kg energy densities. Dry electrode processing, which from my research has been recently solved and is scaling up into large manufacturing capacity is now outputting 300wH/kg with pathway to 500wH/kg+.
Replacing liquid/gel electrolyte with solid material in this sense is an incremental improvement to lithium based chemistries. Requirements for cobalt are being progressively removed from the chemistry make up and soon won't be required. This is all helping, along with installation and cooling methods, reduce thermal runaway which is the cause of battery fires, as well as bring the cost down.
The world is going to need several terrawatts hours of batteries produced per annumn for BEVs and storage. Silver prices and the availability of the resource won't support this level of scale and the cost of kwH will increase, not decrease (as is required). It becomes a non-starter.
On the back of this, the leading buyer of lithium cells in the world has openly stated to the industry of the dramatic increase in Ni supply required. Heresay maybe, but I'm taking that as a leading indicator for big announcements to be made later this year in this space. Yes I'm talking about Tesla.
In short, I wouldn't be looking at high density battery manufacturers as a buyer of silver. But I do see silver having continued and increasing demand for electronics. Also, I see BEVs still using deep cycle lead acid batteries for the 12v systems, small scale storage (UPS, off-grid/grid support etc) - its cost per khW is great when the end use is wisely considered.
MYL Price at posting:
8.2¢ Sentiment: Buy Disclosure: Held
