'Not Good:' Elon Musk Weighs in on Upcoming Silver Supply Chain Issues
Musk reacted to the upcoming restrictions that the Chinese state will impose on silver exports by highlighting the relevance of the precious metal in the industrial world. Silver has performed superbly this year, more than doubling its January prices.
Elon Musk Laments China’s Silver Export Restrictions
The silver market continues to thrive, and industry giants are weighing in on the upcoming restrictions that China will exert on its exports.
Elon Musk, CEO of Tesla and SpaceX, two industry giants, has recently referred to the impact that these restrictions will have on the industrial world.
Commenting on a post that detailed this situation, Musk stated:
This is not good. Silver is needed in many industrial processes.
China will begin exerting these controls on January 1, and companies will have to obtain licenses and state approval to conduct these activities.
China is the country with the second-largest silver output, only second to Mexico. According to numbers from The Silver Institute, China produced 110.1 million ounces of silver in 2024.
This, combined with a projected demand increase and a stagnating supply, resulted in an exacerbation of market prices in Shanghai and Comex markets, with silver rising to historic levels.
Musk’s worries highlight the challenges that industries requiring silver for their operation, including battery and automotive companies like Tesla, might face in 2026 as the supply gets constrained by state-imposed limitations.
In November, the U.S. Geological Survey (USGS) included silver in its list of critical minerals, underscoring this metal’s significance to the country’s economic growth and technological leadership.
It remains to be seen if the Trump Administration will make a move towards securing silver for the country’s industries, supported by this acknowledgement of silver’s importance.
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