Lithium iron phosphate welcomes new opportunities for development
The "big fever" of the energy storage industry has also increased the demand for lithium iron phosphate batteries, the main force in the field of energy storage batteries, and has become more and more popular.
On May 6, China Mobile announced on its procurement and bidding website a bidding announcement for the centralized procurement of lithium iron phosphate battery products for communications from 2021 to 2022. According to this announcement, China Mobile plans to bid for a total of 923 million Ah of 3.2V energy storage lithium iron phosphate batteries, equivalent to 2.95GWh, and the maximum bid price is 2.367 billion yuan (excluding tax). It is reported that this is the first bidding purchase order for lithium iron phosphate batteries for communications this year.
In fact, this is not the first time that China Mobile has issued a communication bidding announcement. As early as March last year, China Mobile issued a bidding announcement for the "Concentrated Procurement of Lithium Iron Phosphate Battery Products for Communication in 2020". At that time, 8 companies including Yiwei Lithium Energy, Shuangdeng Group, and Narada Power successfully won the bid.
It is worth noting that not only China Mobile, but also operators such as China Telecom, China Unicom, China Tower, and Huawei are also making efforts in the communications market. "The background of enterprises' active participation in the communications field is that the current construction of 5G communication base stations has become the top priority of China's'new infrastructure'. It is expected that in 2021-2023, the country will usher in the peak period of 5G base station construction." Industry insiders pointed out that driven by this, the demand for energy storage batteries will also usher in explosive growth.
It is predicted that by 2025, China's energy storage lithium battery shipments will reach 60GWh, and the market size will exceed 55 billion yuan. This is undoubtedly a huge benefit for lithium iron phosphate batteries, which currently account for more than 90% of the domestic energy storage market.
Of course, you need to harden yourself. Behind the strong demand for lithium iron phosphate, it is naturally inseparable from its many advantages that are compatible with the energy storage industry.
From the application side, energy storage and new energy vehicles have very different battery performance requirements. Energy storage batteries require lower cost, longer life and safer, while automotive power batteries require volume on the basis of safety. Smaller, higher energy density, better power characteristics. In terms of battery types, lithium iron phosphate batteries with mature technology and outstanding advantages in safety, service life, cost and other aspects have naturally become the preferred battery in the current energy storage industry.
Generally speaking, lithium batteries used in the field of energy storage require more than 3,500 cycles (that is, the service life needs to be more than 10 years). The cycle number of lithium iron phosphate batteries is much higher than that of lead-acid batteries and ternary batteries, reaching more than 7000 times. In terms of cost, although the price of raw materials for lithium iron phosphate batteries has risen to a certain extent, its cost is still lower than that of ternary batteries, and it is expected to continue to become the main battery supply direction in the energy storage field in the future.
It is worth mentioning that, by virtue of its low-cost advantages, lithium iron phosphate batteries may usher in a huge opportunity to accelerate "penetration" into the foreign energy storage market.
According to foreign media reports, in order to ease the tight supply of nickel demand and further reduce the cost of energy storage products, Tesla has recently changed its Megapack energy storage products with a maximum battery capacity of 3MWh per unit to lithium iron phosphate batteries.
It is worth mentioning that it is precisely by virtue of the popularization of the star energy storage product Megapack that Tesla's total installed capacity of energy storage batteries in 2020 has achieved a year-on-year growth of 83%, reaching 3.02GWh.
"With the low-cost support of lithium iron phosphate batteries, Megapack's competitive advantage will be more obvious, and Tesla's energy storage business sales and gross profit are also expected to be further improved." An industry insider analyzed that in the long run, Under the demonstration effect of Tesla, a leader in the new energy industry, lithium iron phosphate batteries may have the opportunity to break the overseas energy storage market pattern that has been dominated by ternary batteries in the past.
In the domestic market, driven by multiple factors such as the "dual-carbon" strategic goal, the continued decline in lithium battery costs, the steady improvement of technology, and the continuous expansion of application scenarios, the energy storage market is rapidly opening up; in foreign markets, Tesla Energy Storage Driven by the demonstration of product switching of lithium iron phosphate, as well as the efforts of many domestic energy storage battery companies to "go overseas", lithium iron phosphate batteries may gradually become "favored" in the international energy storage market and move towards a broader stage.