China's infrastructure construction and adoption of 5G telecommunications continued growing rapidly in 2023, according to the ministry of industry and information technology (MIIT), in a positive sign for metals demand.
The rollout of 5G telecom networks is driving demand for electronic metals in network equipment and increasing demand for lithium batteries to provide back-up power for base stations in the longer term, according to market participants.
The country built a total of 3.37mn 5G base stations as of the end of 2023, up by 15pc from 2.31mn a year earlier, said MIIT spokesperson Zhao Zhiguo. The government in March last year unveiled a plan to build 600,000 new base stations in 2023, and aims to build more than 10,000 5G factories in the manufacturing industry that are supported by "industrial internet" during the 14th five-year plan (2021-25).
China's 5G mobile phone registered users also rose to 805mn by the end of 2023, up significantly from 561mn a year earlier, Zhao added. 5G applications have been integrated into 71 of the country's economic segments.
Lithium-iron phosphate (LFP) batteries are increasingly replacing lead-acid batteries in telecom networks as they provide higher energy density. This new generation of phones requires high-efficiency power amplifiers that run on gallium arsenide or gallium nitride. Demand for indium phosphide substrate wafers is also expected to remain strong following the roll-out of 5G and its related power applications.
