The commercialization of 5G applications is accelerating, and the construction of 5G base stations is driving demand for LiFePO4 batteries to unprecedented levels, with projections exceeding 155GWh. As the industry aligns with new technical standards, it's clear that 5G represents the future of communication.
Recent data reveals that domestic network operation and support costs have risen by over 10% annually over the past three years, with energy consumption comprising around 12% of these expenses. Consequently, the government is prioritizing the reduction of tariffs and operation costs.
In 2018, China Tower made a strategic decision to discontinue the purchase of lead-acid batteries, favoring a unified procurement process for used batteries instead. As the pace of 5G base station construction accelerates, the demand for energy storage LiFePO4 batteries is set to surge.
China Telecom and China Unicom are planning to more than double their 5G base stations compared to their current 4G base stations, while China Mobile aims to quadruple its number. This translates to the construction or modification of at least 14.38 million base stations. Additionally, these base stations will require significant upgrades to their backup energy systems, with a single 5G C-band base station consuming 2700W and necessitating a 4-hour emergency duration. This will drive the market demand to at least 155GWh of battery storage capacity.
LiFePO4 batteries offer clear advantages for 5G communication base stations over traditional lead-acid batteries. They boast longer service life, superior performance, and the absence of heavy metal lead. Although initially more expensive, their longer lifespan and superior charge-discharge cycles make them more cost-effective in the long run.
In 2018, our company stopped purchasing lead-acid battery base station power supplies, shifting to lithium batteries instead. Following Iron Tower Company's plan, we expanded the use of lithium batteries in 2019, replacing 150,000 tons of lead batteries and over 50,000 tons of decommissioned power batteries. With national policies driving a shift towards lithium battery utilization, lead storage batteries at base stations are expected to decline.
In conclusion, as the decommissioning of large-scale lithium-ion batteries progresses, lithium batteries are anticipated to replace lead batteries in low-performance requirement areas like base stations and backup power supplies. The advent of 5G base stations will undoubtedly boost the growth of the LiFePO4 battery energy storage industry, with CTECHI Energy Storage batteries leading the charge in providing reliable, efficient power solutions for the future.