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Home > News > Will 5G infrastructure lead to a new blue ocean of lithium batteries?China mobile, China tower intensive order

Will 5G infrastructure lead to a new blue ocean of lithium batteries?China mobile, China tower intensive order

2020-05-29
China mobile has completed the bidding of the world's largest wireless network master device and SA core network equipment for phase ii of 5G, so as to ensure that all cities at and above the prefecture level will provide 5G commercial services within the year.
5G has been formally commercialized since 2019, and now the pace of construction is further accelerating.
Behind the acceleration of 5G construction, Lithium Battery may become a new blue sea.
Recently, China mobile announced the winning result of the centralized procurement of lithium iron phosphate battery in 2020, and eight enterprises won the bidding.
"The batteries for 5G base stations used to be lead-acid batteries. In 5G construction, they will be replaced by lithium iron phosphate batteries.
"The three major carriers have placed orders for lithium batteries for 5G construction, and the volume is large."
A battery manufacturer told the 21st century business herald.
China mobile confirmed to 21st century business herald that the lithium battery procurement bidding project launched in March this year and announced recently is mainly used in the transmission aggregation room and 5G base station.
In addition, a person in charge of China mobile's bidding told 21st century business herald that the project will be able to meet China mobile's 5G base station construction this year.
Over 1.3 billion yuan purchase order
With new infrastructure proposed, operators are gearing up to build 5G base stations this year, and raw "ammunition" is indispensable.
In march this year, China mobile issued the tender announcement for the centralized procurement of lithium iron phosphate batteries in 2020.
The total amount of tongxin lithium iron phosphate battery was 610.2 million Ah (specification 3.2v), and the purchase demand was satisfied for one year.
Among them, jiangsu zhongtian technology co., ltd. bid 1.292 billion yuan, winning 18.85% of the bid.
Jiangsu hai sida power supply co., ltd. bid 1.3286 trillion yuan, 15.94% of the bid;
Shuang deng group co., ltd. bid 1.422 billion yuan, winning 14.49% of the bid;
EVE Energy Co., Ltd bid about 1.373 billion yuan, winning 13.04% of the bid.
The tender price of Zhejiang Narada Power Source Co., Ltd is about 1.359 billion yuan, with the winning share of 11.59%;
Shenzhen xiongtao power supply co., ltd. put in the bid price of 1.4098 trillion yuan, with the winning share of 10.14%;
Harbin guangyu power supply co., ltd. bid 1.397 billion yuan, winning the bidding share of 8.70%;
Dongguan lilang battery technology co., ltd. bid about 1.454 billion yuan, winning 7.25% of the bid.
Of the eight lithium battery manufacturers, Zhejiang Narada Power Source Co., ltd. announced the winning bid.
"Nandu power is one of the winning bidders for the project," it said. "the bid price is 1.359 billion yuan (excluding tax), and the winning share is 11.59%. The winning amount is about 158 million yuan (excluding tax)."
Based on this calculation, the total amount of China mobile's centralized lithium battery procurement project is about 1.359 billion yuan.
"It is not clear whether there will be a new bidding for lithium batteries, depending on the demand for the procurement, which in principle is once a year."
A China mobile bidding source told the 21st century business herald that the current target has basically met the requirements for China mobile's 5G base station construction this year.
According to the data, China mobile has built and activated 140,000 5G base stations so far, including in 286 key areas for epidemic prevention and control.
China mobile's respect toward the 21st century economic report reporter pointed out that at present China mobile has completed 5 g phase ii of the world's biggest wireless webmaster equipment and SA core network equipment tendering, fully restored 5 g construction, go all out to seize the construction period, strive to ahead of schedule in 2020 built 5 g base station number 300000 target, ensure the years in all above ground level cities in China with 5 g commercial service.
Intensive procurement of lithium batteries
In addition to China mobile began to purchase large orders, the recent communications industry lithium battery procurement orders.
On March 11, China iron tower co., LTD. (hereinafter referred to as "China iron tower") issued the procurement announcement of intensive e-commerce procurement project of lithium iron phosphate battery group products for standby power in 2020, inviting tenders to purchase 2GWh lithium iron phosphate battery group products.
Afterwards, according to the reporter of 21st century business herald, China iron tower in anhui, jiangxi, guangdong, xiamen, chengdu and other places branches have issued the election announcement.
By early may, China tower had issued 38 bids for the purchase of lithium batteries this year, with an estimated purchase amount of more than 1.5 billion yuan.
It needs to be noted that the purchase of China tower has been foreshadowed for a long time.
As early as 2018, China iron tower has issued the "notice on stopping the procurement and replacement of lead-acid batteries", requiring it to stop the procurement of lead-acid batteries according to the six-year replacement cycle of stock stock, and to replace the newly added and replaced batteries with on-board cascade batteries or brand-new lithium iron phosphate batteries.
China unicom and China telecom also announced this year that they will jointly acquire no less than 250,000 5G base stations, and plan to complete all of them in the first three quarters of this year.
Based on the base station construction scale of China mobile and the purchase order, the lithium battery purchase scale of China unicom and China telecom is estimated to exceed 1.1 billion yuan.
In fact, due to the significant increase in power consumption of 5G base stations, it will become the standard function of 5G base stations to use the standby power to cut peak and fill valley, so as to reduce the electricity cost.
Compared with the traditional lead-acid battery, lithium iron phosphate battery is a better choice.
Orient securities research team said in a report that the lithium iron phosphate industry chain "as lithium battery costs continue to drop and the market price of energy storage with lithium iron phosphate batteries have down 0.68 yuan/Wh, even if they don't consider peak cut, the effect of lithium iron batteries in 5 g base stations on the whole life cycle cost far more than lead acid battery."
According to the report, after testing, each 5G base station's new lithium iron battery can make a complete pest-flat-valley switch twice a day, saving 10,400 yuan of electricity per year, or 2,554 yuan per year more than lead-acid batteries.
Based on 7.6 million 5G base stations in 2025, an annual saving of 19.4 billion yuan will be achieved.
In addition, some people in the communications industry pointed out that compared with lead-acid batteries, lithium iron phosphate battery life longer.
"Lead-acid batteries have a cycle life of 3-5 years with 500-600 times of charge and discharge, and lithium iron phosphate batteries have a life of more than 10 years with more than 3,000 times of charge and discharge, which means lithium iron phosphate batteries can better cover the full life cycle of 5G base stations."
"It is expected that the construction of 5G base stations will exceed the expectation this year, realizing the construction of 680,000 5G base stations, and the construction of 7.6 million base stations in 2025," the research team of Orient securities pointed out. "the logic of lithium iron recovery has been verified in power batteries, and lithium iron batteries will play a greater role in the energy storage of communication base stations in the 5G era."