Gold is famous the world over as a key commodity when it comes to things like jewellery, currencies, and federal reserves – however, this most sought-after precious metal is also playing a role in the green energy transition.
Perhaps what is not as well known is that of all the minerals mined from the Earth, none are more useful than gold. Its benefits are derived from a diversity of special properties. Gold conducts electricity, does not tarnish, is very easy to work with, can be drawn into wire, can be hammered into thin sheets, alloys with many other metals, can be melted and cast into highly detailed shapes, has a wonderful colour, and a brilliant lustre.
According to the World Gold Council (WGC), gold can be used as an industrial metal in a very broad range of applications, but the latest surge in demand is being driven by the electronics sector, which accounts for ~80% of gold used in technology.
The WGC says the precious metal is ubiquitous in most consumer electronics and automotive applications, where its chemical and physical properties combine to make it irreplaceable in many high-end devices. The trend of electrification is providing support for gold demand in the sector, with most types of semiconductor chips using the metal either as a coating, or in the form of thin bonding wires.
Gold is well-known as a highly efficient conductor that can carry currents and remain free of corrosion. Electronic components made with gold are highly reliable. Gold is used in connectors, switch and relay contacts, soldered joints, connecting wires, and connection strips. Most of the ways that gold is used today have been developed only during the last two or three decades. This trend will likely continue as society requires more sophisticated and reliable materials. This combination of growing demand, few substitutes, and limited supply, will cause the value and importance of gold to increase steadily over time. It is truly a metal of today and the future.
Electric vehicle (EV) use
More recently gold is a metal that has been used in batteries for EVs. While gold is not the most abundant metal on earth, it is one of the most conductive and this makes it an ideal material for use in EV batteries, as it helps to ensure that electricity can flow freely and efficiently throughout the battery.
Gold is also non-reactive, meaning it won’t rust or degrade over time, making it a perfect material for long-term use in EVs. The most common use of gold in EVs is in the electrical wiring due to its excellent conductivity.
Furthermore, gold is a natural antibacterial agent that is ideal for cars that are frequently exposed to bacteria on a regular basis.
“Responsible gold mining supports sustained socio-economic development in countries and communities that host gold mining operations”
Other modern uses
Gold is an essential part of the technologies that shape our lives and our future. Although it’s a heavy metal, gold is used as the coating on the windscreen of airplanes that reflects infra-red radiation.
Gold nanoparticles improve the efficiency of solar cells. The main reason that ISS solar panels are gold is because they are more efficient than blue or black solar panels. Gold is more malleable and ductile than a semiconductor, and it has great efficiency in terms of conductivity of electricity, which is highly imperative for solar energy conversion into electricity.
Additionally, it produces no contamination of the semiconductor. Gold, as a metal that is corrosion-resistant, is an excellent choice for solar panels. While all metals can be affected by this process, gold is corrosion-resistant under normal conditions. Steel and iron can rust due to oxidation. If the metals are exposed to harsh conditions, such as the sun, they may develop rust. Gold is not susceptible to rust. The same can be said for copper. In a solar panel, the metal must be coated with a protective layer.
Gold is also a highly efficient substance that can absorb light energy. When used in solar panels, gold can produce a high-quality photovoltaic cell. However, its efficiency depends on other factors as well. Gold has superior conductivity and malleability compared to semiconductors, which make it a perfect choice for solar panels. The solar arrays on the International Space Station power the entire station, including life support and control systems.
A gold Schottky barrier solar cell contains two layers of gold, each covering a microscopic semiconductor. The gold films act as mirrors, absorbing light eleven times better than silicon solar cells. The thin film of gold is applied over a freshly etched n-type semiconductor and is coated on its front surface. This prevents light reflection and increases the efficiency of the solar cell. It also protects exposed mesh spaces.
Social benefits
The WGC says that while gold is unlikely to ever top lists of important net-zero metals, it is still relevant to the energy transition and climate change. The metal benefits communities that depend on mining operations, which are often in remote areas where job opportunities can be slim, gold executives said.
The gold sector also has broader benefits for people that depend on the industry, such as those living near mines in poorer regions. Papua New Guinea is a prime example of where gold mines have played a critical role in bringing health, education, training, and employment benefits to remote areas where government support has historically been lacking.
The WGC has long believed that responsible gold mining supports sustained socio-economic development in countries and communities that host gold mining operations, through its contribution to jobs, tax revenue, and investment in local communities. It says that the gold industry makes a meaningful contribution to the UN’s Sustainable Development Goals.
Gold itself also plays a critical role in supporting societies’ needs and is considered important across cultures globally. It is deeply understood and recognized as a source of financial security and is critical to numerous technological and healthcare applications.
However, S&P Global says the gold sector must look to further promote the yellow metal’s merits as a climate change-related safe-haven asset and point to the broader benefits its mines can have on nearby communities.
But with investors and consumers focused on decarbonization and environmental sustainability, gold must create its own climate narrative.
