5Gcommercialization is getting closer and closer, and base station constructionwill drive demand for LiFePO4 batteries above 155GWh. 5G commercialization isgetting closer and closer, and the entire industry chain is actively operatingto meet new technical standards. The data show that in the past three years,the domestic network operation and support costs have increased by an averageannual rate of more than 10%, of which energy consumption accounts for about12%.
Inthe case of such a large increase in operation and maintenance costs, the staterequires reduction of capital charges, so operation and maintenance costs havebecome a key development point. In 2018, China Tower has stopped theprocurement of lead-acid batteries, and unified procurement of grade-utilizedbatteries. As the construction of 5G base stations accelerates, the demand forenergy storage LiFePO4 batteries will increase significantly.
Accordingto the plan, China Telecom and China Unicom's 5G base stations will be morethan twice the current number of 4G base stations, and China Mobile will bemore than 4 times the current number. According to the 2018 annual reports ofvarious operators, it is estimated that a total of at least 14.38 million basestations in China need to be built or rebuilt.
Inaddition, as the energy consumption of 5G base stations has increasedsignificantly, it means that 14.38 million sets of backup energy systems needto be improved. According to the calculation of 5GC-band single station powerconsumption of 2700W and emergency 4h, the market has at least 155GWh batteryaccommodation space. In order to ensure the stable use of 5G communicationequipment, the macro base station reserves 3-4h of energy storage power, andthe power supply voltage is 48V. Large-scale construction has directly driventhe demand for energy storage batteries. Compared with lead-acid batteries, itcan be seen that the advantages of LiFePO4 batteries in 5G communication basestations are more obvious, and the future application prospects are broader.
Comparedwith ladder LiFePO4 batteries, lead batteries have the disadvantages of shortservice life, low performance, and heavy lead contained in heavy metals.Although the current price of LiFePO4 batteries is still higher than that oflead batteries, its charge and discharge times, service life, and volume andweight advantages can make up for the shortcomings of high prices, and thecomprehensive use cost is better than lead batteries.
Iron Tower has stoppedpurchasing lead-acid battery base station power supplies in 2018 and has insteaduniformly purchased ladder LiFePO4 batteries. According to the plan of theTower Company, in 2019 it will continue to expand the scale of the use of LiFePO4batteries. It is expected to replace 150,000 tons of lead batteries and digestmore than 50,000 tons of decommissioned power batteries. Although the basestation power supply field is the demand side of traditional lead-acidbatteries, due to the directional change of national policies, the growth ratein this field will shift to the use of lithium elevators. Although the basestation power supply data will accelerate with 5G investment, the statisticalcaliber cannot distinguish between lead storage batteries and lithiumelevators. It is expected that with the gradual expansion of ladder-type LiFePO4batteries and the requirements for environmentally friendly battery harmlesstreatment, the application of lead batteries in base stations will continue toshrink.
Inshort, it is expected that with the retirement of large-scale lithium electricpower batteries and the accumulation of experience, ladder lithium batterieswill completely replace lead storage batteries in areas such as base stationsand backup power sources that require lower battery performance. 5Gcommunication base stations will drive the growth of LiFePO4 battery energystorage industry!