Elon Musk has raised concerns over tightening global silver supplies after China signalled plans to restrict silver exports, warning of potential knock-on effects for industrial users.
The comments come as silver prices have surged in 2025, with the metal more than doubling from January levels amid strong demand and limited new supply.
Market data shows silver prices in Shanghai and on the Comex exchange have climbed to multi-year highs, reflecting growing strain across physical markets.
Musk reacted publicly to reports of Chinese export controls by highlighting silver’s essential role in modern industrial production.
He warned that constraints on silver availability could pose challenges for manufacturers reliant on the metal.
Industries most exposed include battery producers, renewable energy firms and automotive companies.
Analysts note that electric vehicle manufacturers, including Tesla, rely heavily on silver for battery components and electronic systems.
China plays a central role in the global silver supply chain, making any state-imposed restrictions highly influential for international markets.
The proposed export measures are expected to take effect in 2026, adding uncertainty to long-term supply forecasts.
Rising industrial demand has already placed pressure on inventories, according to commodities analysts.
At the same time, global silver production has struggled to expand meaningfully due to higher costs and limited new mining projects.
In November, the US Geological Survey added silver to its list of critical minerals, underlining its strategic importance.
The designation reflects silver’s role in supporting economic growth, clean energy technologies and advanced manufacturing.
Observers say the move could encourage policy discussions around domestic supply security.
Market participants are watching closely to see whether the Trump administration responds with measures to safeguard access to silver.
Analysts suggest this could include incentives for domestic production or strategic stockpiling.
Musk’s comments have added to broader debate around resource security and industrial resilience.
Investors note that supply risks may continue to support elevated silver prices.
The situation underscores the growing intersection between geopolitics, commodities and advanced technology.