The rapid commercialization of 5G communication technology is leveraging a new market demand, especially for the long-life and high safety performance of the lithium battery. Recently, “China Tower and China Telecom Lithium Iron Phosphate Battery Products For The Joint Concentrated Bidding” was officially released. The bidding estimate is 2.09 GWH, the bidding estimate of China Tower is 2 GWH, and the bidding estimate of China Telecom is 0.09 GWH.
This is not the first time that China’s Iron Tower has bidding. As early as March 11 this year, China’s iron tower issued the “Procurement announcement for 2020 Intensive e-commerce Procurement Project of Lithium Iron Phosphate battery pack for standby power”, Jilu Tong, chairman of China Iron Tower, said he had built 700,000 5G base station projects over the past year.
The Chinese tower and China Telecom “Joint Action” earlier than this tender. Two months ago, China Tower and China Telecom announced that the two sides will jointly organize the procurement of lithium iron phosphate batteries for standby power. The notice requires the supplier to be the manufacturer of the lithium iron phosphate battery pack product and to have the independent production capacity of 12V 100Ah LFP battery pack and 48V 100Ah LFP battery pack. The detailed rules for the detection of lithium iron phosphate battery require that the detection of 5 groups of batteries, 1 BMS, and 9 single cells of lithium iron phosphate battery can be divided into three parts: system, BMS and platform, in terms of safety performance, the battery should not catch fire or explode under the conditions of anti-overcharge, deep discharge, anti-shock, anti-high temperature, and anti-short circuit.
01 155GWh batteries demand, over 20 billion USD
“Base stations need to be denser because of the high frequency of 5G technology and the greater attenuation in the transmission of signals, ” said industry insiders. 5G uses ultra-high-frequency signals, which are much higher than the existing 4G signals, and the demand for base stations will grow as well. According to China Mobile and China Telecom, 600,000 5G base stations will be opened by the end of this year.
The capacity expansion of the 5G base station will put a huge demand on batteries. From 2020 to 2023,5G base stations will generate 7.6 GWH, 9.7 GWH, 10.8 GWH, and 11.9 GWH. With High Energy Density Lithium Battery, 5G base station energy storage battery application space is extended, storage battery capacity is also higher, in addition to as a backup power supply, but also can be used in time-sharing price “peak load”. Industry analysts pointed out that if the realization of “5G + Energy Storage Peak”, will bring a further significant increase in lithium battery demand.
In the longer term, the industry predicts that China will need at least 14.38 million new base stations in the future, and the 5G base station energy storage market will provide 155GWh of lithium iron phosphate batteries in the future, the corresponding market size will exceed 20 billion USD.
02 “Long Cycle Life/Low Cost/High Safety” Advantages Highlight
According to Professional Lithium Battery Manufacturer internal data, the traditional communication base station is mainly Lead-acid battery, but the battery has short service life, low performance, high requirement for environment and maintenance. The test data show that the power consumption of 5G base station is nearly 2-3 times that of 4G base station, and the high energy, long cycle life, low cost and high security characteristics of Lifepo4 meet this demand.
In fact, as early as 2018, China’s Iron Tower stopped purchasing lead-acid batteries, end uniform use lithium iron phosphate batteries as base station backup power system. By the end of 2018, China’s iron tower had used about 1.5 GWH and replaced about 45,000 tons of lead-acid batteries in about 120,000 base stations in 31 provinces, cities and districts across the country; by 2019, about 5GWh of lithium iron phosphate battery and about 150,000 tons of lead-acid battery have been replaced by lithium iron phosphate battery.
Under the background of lead-acid being replaced gradually around the worldwide, domestic lithium battery manufacturers are also stepping up the layout of communication base stations. In November 2019, Shenzhen SmartPropel Energy Storage Lithium Battery Project launched, the project mainly produce 5G communication power supply for lithium iron phosphate battery. In addition, BYD, YiWei lithium energy and other lithium iron phosphate batteries related to the big players are also active to take part in the industry.
We will continue to increase our share of supply in cooperation with a number of domestic manufacturers of communication equipment, and have achieved success in developing overseas energy storage areas.
At present, there is a consensus in the industry that the large-scale application of 5G technology will necessarily require the construction of a larger number of base stations, together with the upgrading of existing 3G/4G base stations, will provide more space for lithium iron phosphate demand, 5G base station market for lithium battery demand will be sustainable.
SmartPropel Writer: Nancy