https://www.idtechex.com/research/articles/china-tower-can-absorb-2-million-retired-electric-vehicle-batteries-00015460.asp
China Tower can 'absorb' 2 million retired electric vehicle batteries
Sep 27, 2018  Dr Na Jiao

[image  /  China Tower
https://idtxs3.imgix.net/si/40000/1E/66.png
]

The Ministry of Industry and Information Technology of China has recently
announced the pilot program of recycling and second use of retired electric
vehicle batteries in 17 major regions and cities. China Tower, the world's
biggest operator of telecommunication towers, is included as the only
company in the pilot program to develop key technologies, explore business
models and help establish standards related to second-life batteries.

The Ministry of Industry and Information Technology (MIIT) of China has
recently announced the pilot program of recycling and second use of retired
electric vehicle batteries in 17 major regions and cities. China Tower, the
world's biggest operator of telecommunication towers, is included as the
only company in the pilot program to develop key technologies, explore
business models and help establish standards related to second-life
batteries. China has a strong momentum on developing solutions and standards
for retired batteries from electric and hybrid electric vehicles which are
expected to grow explosively over the next ten years, hitting over 100GWh
per year by 2029. For more information, please see IDTechEx's latest report
on Second-life Electric Vehicle Batteries.

Back to January 2018, China Tower announced partnerships with more than 16
major Chinese EV and battery manufacturers including BYD, Guoxuan High Tech,
and YinLong New Energy on second-life electric vehicle batteries. China
Tower has close to 2 million telecom towers across China, with around 54GWh
battery storage demand for back-up power for their telecom base stations.
One single tower needs about 30kWh back-up battery (equivalent to one
electric vehicle battery pack) which means in the future the storage demand
from the telecom base station back-up only could absorb up to 2 million
retired electric vehicle batteries. Currently, there are only 2% Li-ion
batteries deployed in China Tower - the majority of the storage batteries
are still lead-acid batteries. It is estimated that China Tower spends
around CNY20 billion on the back-up lead-acid batteries. 

China Tower has been testing second-life electric vehicle batteries as
replacement of lead-acid batteries in their telecom base stations across
China since 2015. Although somewhat degraded, second-life batteries could
still perform better in terms of lifetime degradation and energy density
than lead-acid batteries, and they are much cheaper than new Li-ion
batteries. In China, currently second-life batteries are priced at the same
level as lead-acid batteries (around $100/kWh). China Tower claimed that
since 2018 they are not going to purchase lead-acid batteries anymore and
all the old lead-acid batteries will be replaced by second-life batteries in
the future.

China Tower has long-term steady demand for second-life batteries on a
large-scale and the support of the government as the 'demonstration
corporation' which makes them the biggest customer of second-life batteries.
They are definitely a 'winner' in this business because they get batteries
that have better lifetime performance but at the same price as lead-acid
batteries. It is not clear whether in the future they are still able to
obtain second-life batteries at such a low price. With the volume of
second-life batteries as well as the storage demand increases, China Tower
is expected to face more and more market competition and the pricing
mechanism will change accordingly. More detailed analysis of the cost and
pricing of second-life batteries is included in IDTechEx's latest report on
Second-life Electric Vehicle Batteries.

If you want to learn more about second-life electric vehicle batteries, be
sure not to miss the second-life battery session in our next leading event
on the topic: Electric Vehicles: Everything is Changing, USA 2018 on 14-15
Nov 2018 at Santa Clara Convention Center, CA, USA hosted by IDTechEx.
[© idtechex.com]


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