By Meg Flippin, Benzinga

DETROIT, MICHIGAN - September 17, 2026 (NEWMEDIAWIRE) - Thanks to electric vehicles, AI data centers and green energy, demand for silver continues to outstrip supply. So much so that 2025 marked the fifth consecutive year in which a supply/demand imbalance existed. For 2026, the Silver Institute expects global mine production to remain flat, with the structural deficit widening. The situation is getting so dire that some governments, including the U.S., have classified silver as a critical mineral.  

There are several reasons for the shortages. For starters, silver is used in everything from EVs to data centers, with the growth of both driving demand for the metal. At the same time, the number of new silver mines coming online is not very large, with many miners bogged down by long permitting times and dwindling ore grades. It doesn’t help that most silver is mined as a byproduct of copper and zinc, which means production can’t easily be amped up just because prices for silver are soaring.  

Bringing More Silver Online With New Pacific Metals 

But without a stable supply of silver, the green revolution and tech transformation could face an expensive problem that forces manufacturers to absorb soaring material costs, delay rollouts of new technology or develop cheaper workarounds. It’s something that countries and industries around the world generally don’t want to see happen, and what New Pacific Metals Corp. (TSX.NUAG) (NYSE-A: NEWP), the Vancouver, British Columbia, mining exploration and development company, is working hard to prevent. 

The company reports it owns two of the world’s largest undeveloped open-pit silver projects, Silver Sand and Carangas, which have the potential to produce nearly 23 million ounces of silver annually.

Silver Sand, located in Bolivia’s Potosí department, has a mineral resource containing over 200 million ounces of silver. Its pre-feasibility study projects an estimated production of 12 million ounces of silver annually. The project is currently advancing through the permitting stage. Meanwhile, the company reports Carangas has a mineral resource containing over 200 million ounces of silver and an estimated production of 15.5 million ounces of silver annually. The project is advancing through permitting and technical work with New Pacific Metals hoping it becomes an important source of global silver as the world looks for the next generation of production. 

Late last month, New Pacific Metals signed the Administrative Mining Contracts for its Carangas Silver-Gold Project, giving it a 30-year fixed term and representing a key milestone in advancing the mine from exploration to production. New Pacific said the signed AMCs will be submitted for ratification and approval, representing the next key step toward formally obtaining the mining tenure. Following legislative approval, the company expects to advance the Carangas project’s remaining permitting and technical work, including the environmental categorization and subsequent Environmental Impact Assessment process. 

Drilling To Commence 

At the same time, New Pacific Metals said drilling at the site is kicking off in the first half of September, with about 25,000 metres of the 30,000 metres of drilling to upgrade mineral resources in both the silver zone and the gold zone, and the balance focused on step-out drilling for potential extensions and testing new targets. The drill campaign strengthens the path toward development and puts Carangas in a small group of potential future silver producers that have the capability to scale and make a meaningful contribution to the global market, noted the company. 

What makes Carangas stand out isn't just its size but how efficient the company says it can be. It’s planned as an open-pit mine, making it generally cheaper and safer to operate. During its first eight years, the company expects it will cost about $12 to produce each ounce of silver after selling off byproduct gold and base metals to cover costs. Meanwhile, prices hit an all-time high early this year, and J.P. Morgan predicts that silver prices will reach $63 per ounce in Q4 2026, averaging $70/oz for the year and $63/oz in 2027. The project is expected to pay back its setup costs in less than two and a half years, with enough resources in the ground to keep operating for nearly two decades. 

If the mine meets its targets and can produce more than 15 million ounces of silver a year during the first eight years, New Pacific Metals said it alone would represent about 1.8% of 2025’s global mine production. If production increases to 25 million ounces a year, the company said its contribution on the world stage gets even more impressive, to around 3%. How’s that for becoming a meaningful player at a time when silver is in demand? To learn more about New Pacific Metals and the Carangas silver project, click here. 

Featured image from Shutterstock.

This content was originally published on Benzinga. Read further disclosures here.

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