Chinese 5G rollout lifts lithium battery demand

Spanish Market: Metals
19/03/20

The rollout of fifth-generation (5G) telecom networks is not only driving demand for electronic metals in network equipment, but increasing demand for lithium batteries to provide back-up power for base stations.

Lithium-iron phosphate (LFP) batteries are increasingly replacing lead-acid batteries in telecom networks as they provide higher energy density. And with the signal ranges in 5G networks running shorter than those in 4G networks, the rollout will require more base stations to provide coverage, particularly in cities, in turn requiring more back-up power.

Consequently, power consumption from the telecom industry is set to climb with the installation of 5G base stations. Typical power demand from 4G base stations is 780-930MW, while 5G base stations consume 3.4-3.7GW, according to investment bank Guotai Junan Securities. The bank expects demand for lithium batteries from the 5G sector to jump to 13.3GWh this year from 2.7GWh last year, rising further to 14.5GWh in 2021 and to 16GWh in 2022.

State-owned telecom service provider China Mobile and telecom infrastructure firm China Tower have recently issued tenders for 2GWh of LFP batteries for their 5G networks. China Tower has switched from using lead-acid batteries to procuring recycled LFP batteries from electric vehicles.

China Tower added a net 69,000 new network sites last year, bringing its total to 1.994mn, it said today, and expects it tower business to continue growing with the expansion of 5G. The company is expanding its energy business in tandem, with a portfolio of power back-up and generation, charging and battery exchange in line with growing demand for 5G base station co-location.

The Chinese government is set to release investment funds to accelerate the construction of new infrastructure, including 5G networks and data centres, according to the government's National Development and Reform Commission (NDRC). The installation of network equipment such as base stations and data servers is expected to raise demand for minor metals, including gallium, indium and silicon.

The NDRC approved 15.3bn yuan of investment in 19 projects in the first two months of this year, primarily in the transportation and technology industries.

The Chinese government has put forward plans to stimulate the economy by investing in seven areas — 5G networks, the industrial Internet of Things (IoT), transportation systems, data centres, artificial intelligence, ultra-high-voltage networks and electric vehicle charging stations. The NDRC is moving ahead with investments and working with provincial and municipal governments to reform the project management process for foreign investment.

China is expected to account for 70pc of global 5G connections in 2020, according to telecom industry body the GSM Association. Chinese telecom operators are expected to invest more than $180bn in 2020-25 in mobile capital expenditure, about 90pc of which will be on 5G networks.

By Nicole Willing

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08/05/25

India-UK FTA cuts tariffs on Indian auto imports

Mumbai, 8 May (Argus) — The free trade agreement (FTA) finalised between India and the UK early on 6 May will cut tariffs on cars imported from the UK to 10pc from over 100pc earlier under a quota. The landmark FTA follows several rounds of negotiations between India and the UK that were first launched in January 2022. The import duty cuts are expected to make UK-manufactured cars more affordable for Indian consumers. Cosmetics, whisky and gin exports from the UK will also benefit from tariff reduction, the UK government said. Tariffs will also be eliminated on 99pc of Indian goods imported into the UK. This is likely to boost exports of auto parts and other goods such as textiles, footwear and gems and jewellery to the UK, according to the Indian government. Indian exported $21.2bn worth of auto components in the April 2023-March 2024 fiscal year, 32pc of which went to Europe, government data show. "The FTA will be integral in opening new growth avenues and enhancing export potential for auto component and electric vehicle (EV) materials manufacturers," Indian firm Epsilon Carbon managing director Vikram Handa said. Total trade in goods and services between India and the UK stood at £42.6bn ($56.7bn) in 2024. After the FTA, bilateral trade is expected to increase by £25.5bn each year, according to the UK government. Non-ferrous metals, metal ores and scrap and mechanical power generators were among the top exported goods from the UK to India last year. For India, refined oil, clothing and telecoms and pharmaceutical products accounted for a major share of exports to the UK. Exports of iron and steel products from India to the UK rose by nearly 70pc on the year to £489.2mn in 2024, UK government data show. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Fed holds rate, awaits 'clarity' on tariffs: Update

07/05/25

US Fed holds rate, awaits 'clarity' on tariffs: Update

Adds Powell comments, CME, GDP data. Houston, 7 May (Argus) — US Federal Reserve policymakers kept their target interest rate flat today for a third time this year, noting that economic "uncertainty" has increased, while signaling they would continue to monitor the impacts of the new US administration's policies before adjusting monetary policy. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc. The Fed has held the target rate unchanged this year after three rate cuts late last year lowered the target rate by 100 basis points from a two-decade high of 5.25-5.5pc after the Fed sharply hiked rates from near zero to battle inflation that topped 9pc in 2022 during the overheated recovery from the Covid-19 slump. "If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment," Fed chair Jerome Powell told reporters after the decision. "All of these policies are still evolving however, and their effects on the economy remain highly uncertain." Powell also noted that "we are entering a new phase where the administration is entering into beginning talks with a number of our important trading partners and that has the potential to change the picture materially." US economic growth contracted by an annual 0.3pc in the first quarter of 2025 following 2.4pc growth in the fourth quarter. It was the first quarter of negative growth in three years and raised concerns that the US may be entering a recession amid a raft of poor consumer and business confidence surveys. But Powell pointed out that the driver of the first-quarter contraction was a "distortion" caused by a spike in imports, which subtracts from GDP growth, as businesses stocked up on inventory from abroad to get ahead of the tariff impacts. Overall, he said, "the economy is growing at a solid pace, the labor market appears to be solid. Inflation is running a bit above 2pc. So it's an economy that's been resilient and in good shape." The Fed earlier penciled in two likely quarter point rate cuts this year, but the administration of President Donald Trump's chaotic rolling out of tariff and federal spending policies has continued to push back the likelihood of cuts to the federal funds rate, as measured by the CME's FedWatch tool, to the back half of the year. FedWatch, after Wednesday's decision, sees a 23.3pc probability of a quarter point cut at the June Fed meeting, down from 30.5pc Tuesday. Odds of a quarter point cut in July were little changed at 57pc from the prior day. "Ultimately we think our policy rate is in a good place to stay as we await further clarity on tariffs and ultimately their implications for the economy," Powell said. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Fed holds rate steady, keeping eye on tariffs

07/05/25

US Fed holds rate steady, keeping eye on tariffs

Houston, 7 May (Argus) — US Federal Reserve policymakers kept their target interest rate flat today for a third time this year, noting that economic "uncertainty" has increased while signaling they would continue to monitor the impacts of the new US administration's tariffs and other policies before adjusting monetary policy. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc. The Fed has held the target rate unchanged this year after three rate cuts late last year lowered the target rate by 100 basis points from a two-decade high of 5.25-5.5pc. "Uncertainty about the economic outlook has increased further," the FOMC said in its statement. Policymakers "will carefully assess incoming data, the evolving outlook, and the balance of risks" in considering additional adjustments to the target rate, the statement said, echoing language from prior statements. Fed funds futures markets early Wednesday gave a 73pc probability the Fed's first rate cut of 2025 would be at the July meeting. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

High sulphur prices pressure Indonesian buyers

07/05/25

High sulphur prices pressure Indonesian buyers

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Trump unlikely to lift tariffs on Canada

06/05/25

Trump unlikely to lift tariffs on Canada

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