Lithium Universe targets silver in first phase of solar panel recycling

• LU7 is focusing its first phase of solar panel recycling extraction on silver
• Silver demand is projected to reach a record 680Moz in 2025
• The second phase will involve the extraction of other valuable metals including silicon, gallium and indium

Special report: With silver demand forecast to reach a record 680Moz in 2025, Lithium Universe has chosen to prioritise silver recovery using its recently acquired solar panel recycling technology.

Lithium Universe (ASX:LU7) acquired rights to a patented photovoltaic solar panel recycling tech last month that addresses the issue of waste from spent solar panels.

As part of the deal, the company is set to take over Australian-based New Age Minerals to obtain exclusive licensing rights to Macquarie University’s Microwave Joule Heating Technology.

The tech uses microwave technology to selectively heat silicon to soften the EVA encapsulant in solar panels, enabling easy delamination and potential recovery of valuable materials at room temperature.

This means it avoids the extreme heat generation (up to 1400 degrees Celsius) that’s typically required to separate materials like glass and silicon as well as the use of costly hazardous chemicals such as nitric acid, sulphuric acid and hydrogen fluoride used in traditional processes.

Separate silver extraction tech

LU7, with Dr Binesh Puthen Veetti and his team at Macquarie University have decided the first phase of critical metals extraction from the solar panel recycling technology will focus on silver metal.

The team at Macquarie have developed a complementary silver extraction technology for delaminated silicon wafers from the microwave delamination process.

The technology is currently in the patent submission stage, and the licence will be made available to LU7 once it is ready.

It has not yet evaluated the proposed technology, but LU7 has already begun independent research and patent searches to identify the most effective methods for extracting silver from discarded PV solar panels.

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Silver deficit on the cards for 2025

Silver is primarily used in photovoltaic (PV) solar cells as a key material for the electrical contacts that allow the flow of electricity generated by the solar panel.

The average solar panel contains around 20 grams (0.7 oz) of silver, worth about A$36 per panel at today’s silver prices.

Silver’s demand is on the rise, driven by the global expansion of solar panel installations.

In Australia, the goal of achieving 82% renewable energy by 2030 and a 43% reduction in carbon emissions is fuelling the growth of solar panel installations.

The critical mineral is both expensive and relatively scarce, with its extraction involving mining ores such as argentite, which are then processed through smelting or chemical methods.

The ongoing imbalance between silver supply and demand is expected to result in a market deficit of around 117.6Moz in 2025.

Critical minerals next

LU7 believes the recycling and extraction of silver from solar panels presents a lucrative business opportunity due to the substantial amount of silver in each panel.

With the growing volume of solar panel waste – set to reach 8Mt by 2030 – the company reckons this offers a readily available cheap feedstock for recycling.

As demand for silver increases, especially in industries like electronics and renewable energy, recovering silver from end-of-life panels can become a valuable and sustainable revenue stream, it says.

As part of the second phase, LU7 will be investigating the extraction of other valuable metals in discarded PV solar panels such as silicon, gallium and indium.

These materials are not only essential to the clean energy transition but are also critical inputs in the semiconductor industry, where they are used in advanced electronics, power devices and high-efficiency photovoltaic cells.

While the metals are crucial for high-tech applications, their supply chains are concentrated in a few countries, especially China, making them vulnerable to supply disruptions.

Silver extraction takes priority

LU7 executive chairman Iggy Tan said while solar panels contain many critical metals and minerals the follow up extraction of these materials needs to be prioritised.

“Due to the large volume of residual material, rising prices, and supply shortages, the company plans to focus on silver extraction as the first phase,” he said.

“Once we address silver extraction, we can then explore the extraction and recovery of other critical metals like silicon, indium, and gallium—critical in advanced semiconductor and solar energy technologies.”

This article was developed in collaboration with Lithium Universe, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.