The impact of lithium iron phosphate batteries replacing lead-acid batteries on the industry

The impact of lithium iron phosphate batteries replacing lead-acid batteries on the industry. Due to the strong support of national policies, the talk of “lithium batteries replacing lead-acid batteries” has continued to heat up and escalate, especially the rapid construction of 5G base stations, which has led to a sharp increase in the demand for lithium iron phosphate batteries. Various phenomena indicate that the lead-acid battery industry may be replaced by the lithium iron phosphate battery industry.

China’s lead-acid battery technology is mature. It is also the world’s largest lead-acid battery producer and lead-acid battery consumer, with a wide range of battery materials and low cost. Its disadvantage is that the number of cycles is small, the service life is short, and improper handling in the production and recycling process can easily cause environmental pollution.

Compared with electrochemical energy storage of different technical routes, lithium battery energy storage technology has the advantages of large scale, high efficiency, long life, low cost, and no pollution, and is currently the most feasible technical route. Almost all energy storage batteries used in the domestic market are lithium iron phosphate batteries.

What impact will lithium iron phosphate batteries replace lead-acid batteries have on the industry?

In fact, the replacement of lead-acid batteries by lithium batteries will have the following impacts in the industry:

1. In order to reduce manufacturing costs, lithium battery manufacturers are developing environmentally friendly lithium iron phosphate batteries that are more cost-effective than lead-acid batteries.

2. With the intensification of competition in the energy storage lithium battery industry, mergers and acquisitions among large enterprises and capital operations have become increasingly frequent, excellent energy storage lithium battery companies at home and abroad are paying more and more attention to the analysis and research of the industry market, especially for the current market In-depth research on changes in the environment and customer demand trends, so as to occupy the market in advance and gain a first-mover advantage.

3. If the price difference between lithium iron phosphate batteries and lead-acid batteries is not very large, enterprises will definitely use lithium batteries in large quantities, and the proportion of lead-acid batteries will decrease.

4. Under the background of UPS lithium electrification and multi-station integration, overall, the layout of lithium batteries in UPS power supplies is gradually increasing. At the same time, many companies and investors have introduced the use of lithium batteries in data centers. The lithium battery UPS power system will change the dominance of lead-acid batteries.

From the perspective of price management mechanism and policy, when the cost of lithium iron phosphate batteries is low enough, it can replace most of the lead-acid battery market. Various reasons and development forms are paving the way for the arrival of the lithium battery era. Standing at the moment when the industry is changing, Whoever grasps the opportunity will grasp the lifeblood of development.

Lithium electrification is still the clearest trend in the energy storage industry, and the lithium battery industry will usher in another golden period of development in 2023. The market penetration rate of lithium iron phosphate batteries in the field of UPS energy storage is gradually increasing, which will further promote the application market scale accordingly.

Post time: Mar-13-2023