'Silver' Subject to Export Controls Like Rare Earths in China... Elon Musk Also Concerned

Silver Included in Export Controls Starting on the 1st

Export licenses granted to only 44 companies over two years

Musk: "Silver is needed in many industrial processes"

China's newly introduced silver export control measures have come into effect. China, one of the world's largest silver producers, has applied strict export controls to silver at a level comparable to rare earths. Experts predict increased price volatility due to concerns about supply shortages for the time being.

On the 1st, according to Hong Kong's South China Morning Post (SCMP), U.S. CNBC, the U.K.'s BBC, China's Securities Times and others, China's Ministry of Commerce announced the 'List of Goods Subject to Export License Management for 2026' the day before, including silver.

The Ministry of Commerce had earlier, in October last year, indicated plans to limit silver exports alongside tungsten and antimony, which had already been subject to export control. On the 30th of last month, under the new measure, it finalized and announced the list of 44 companies authorized to export silver for the two years 2026–2027.

The newly introduced silver export control replaces the quota system that had been in place since 2000. SCMP reported that companies granted export licenses had to meet strict criteria, such as proving they had exported silver each year from 2022 to 2024.

Chinese authorities said they are implementing silver export controls for "resource and environmental protection," but did not provide detailed explanations about the methods or scope.

However, Securities Times, affiliated with the Chinese Communist Party organ People's Daily, quoted an anonymous industry source on the 30th of last month saying, "The new silver export control policy means that silver has officially been included in the national strategic resources list, elevating its status from a 'general commodity' to a 'strategic material.' Silver export management is at the same level as rare earths."

China is one of the world's largest silver producers with strong refining and processing capabilities. Its reserves are also among the world's largest. From January to November last year, China's silver exports amounted to 4600t, while silver imports in the same period were 220t.

Silver is a precious metal widely used as an industrial material in electronic circuits, batteries, solar panels, and medical devices. Last November, the United States added silver to its list of "critical minerals" deemed essential to the U.S. economy and national security, alongside copper and uranium.

Related foreign companies expect to be hit by China's new silver export controls. CNBC reported that the European Chamber of Commerce in China said, based on a survey of members conducted in November last year, that the majority of respondents said they were already affected or would be affected by China's export controls.

Elon Musk, CEO of Tesla, also wrote on X on the 27th of last month, "This is not good. Silver is needed in many industrial processes."

SCMP noted that silver prices have been on a tear this year, rising by more than 150%, and with China implementing silver export controls, market concerns about supply shortages are growing.

Joseph Darie, Group Director at brokerage Tickmill, said the silver export licensing system is not a blanket export ban but that "with only 44 companies obtaining export qualifications, export rights will be concentrated and frictions in the approval process will increase," adding, "This approach will help secure silver within China but will affect companies and investors outside China in accessing silver."

Experts predict continued volatility in silver prices for the time being. Spot silver prices briefly surpassed $80 per ounce last month before easing back to trade in the $70s per ounce.

Alicia García-Herrero of French investment bank Natixis said the export control measures are aimed at meeting domestic demand for solar and electric vehicle-related needs and told SCMP that if China applies export license requirements "very strictly," silver prices could reach $100 per ounce.

Park Su-bin, Hankyung.com reporter waterbean@hankyung.com