SS1 eyes US$60m credit for silver paste facility

Sun Silver applies for US$60m tax credit to establish silver paste production facility
Facility to be located near the company’s Maverick Springs silver project
Silver paste makes up 23% of the material cost of a solar cell
Additional grant opportunities sought for the project

Special Report: Sun Silver is looking to tap into the US preference for domestic supply chains by applying for a US$60m ($90.4m) government credit to establish a silver paste production facility.

The proposed facility near its Maverick Springs silver project in Nevada will produce high-quality silver paste – critical for improving the efficiency and sustainability of solar photovoltaic cells – that will be supplied to solar cell manufacturers in the US.

This is in line with efforts in the US to reduce dependence on China and bolster domestic supply chains, which has seen President Joe Biden approving an increase in tariffs on Chinese solar imports from 25% to 50% to encourage further onshoring of manufacturing.

Sun Silver’s (ASX:SS1) Maverick Springs project sits within Nevada’s prolific Carlin Trend and is surrounded by world-class gold and silver mining operations like Kinross’ 3.7Moz Bald Mountain gold mine.

Historical exploration – including ~200 holes totalling ~60,000m – by previous operators that covered some 20% of the project has defined a resource of 292Moz silver equivalent (AgEq) ounces at an average grade of 72.4g/t AqEq within a large continuous body 2.4km long, up to 1.2km wide, and between 30-110m thick.

The deposit remains open along strike and at depth while the company’s comprehensive review of historical drill material and data assessment defining new high grade target zones on the northwest boundary of Maverick Springs.

While traditionally seen as a precious metal with some industrial uses, silver is increasingly valued for its use in the construction of solar panels.

Silver paste accounts for up to 23% of the material cost of a PV cell and is crucial for creating electrical contacts essential in converting sunlight into electricity.

Solar commitments are targeted to reach 30% of the US energy requirements by 2030, up from 3% in 2022, a strong hint that a stable and efficient supply of silver paste will become increasingly crucial.

Tax credit application

SS1 has submitted the Section 48C application, which offers a 30% investment tax credit to support advanced energy manufacturing projects and enhancing US competitiveness in clean energy, for its proposed silver paste plant.

The proposed plant, which will be near the Maverick Springs deposit to minimise transport costs and facilitate the sharing of resources, materials, and equipment, will support the growing demand for renewable energy in the US as well as contribute to job creation and economic growth in the sector.

The company adds that Section 48C is just one of several funding and grant avenues available from the Department of Energy.

It continues to actively explore for additional grant opportunities within the department as it advances the Maverick Springs project and silver paste production facility.

“We are excited to pursue our Section 48C application with the US Department of Energy for our silver paste production facility,” executive director Sun Silver Gerard O’Donovan said.

“Locally produced silver paste is crucial for supporting America’s ambitious solar energy targets. This initiative aligns with our commitment to advancing sustainable energy solutions, running in parallel to the development of our globally significant Maverick Springs silver asset.”

This article was developed in collaboration with Sun Silver, 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.