LG Chem’s batteries have been chosen for Samsung Electronics’ Galaxy Note 10. It is unusual to see LG Chem’s batteries being used for Samsung Electronics’ strategic Smartphones.
According to industries, it is understood that LG Chem is supplying its batteries for Samsung Electronics’ Galaxy Note 10 that is expected to go on sale on the 23rd. Along with Samsung SDI, LG Chem is a battery supplier for Galaxy Note 10.
Samsung SDI is a subsidiary of Samsung Group that specializes in secondary batteries such as lithium-ion battery. Because it had supplied most of batteries that went into Samsung Electronics’ past Smartphones, it was expected that it would supply most of batteries for Galaxy Note 10 again. However, it is unusual to see LG Chem included as a battery supplier for Galaxy Note 10.
LG Chem is a subsidiary of LG Group that specializes in batteries. Samsung and LG compete against each other in many areas such as Smartphone, home appliance, battery, display, and electronic part. As a result, it is rare to see any form of transaction or collaboration between the two.
In addition, it is also interesting to note that LG Chem is supplying its batteries for Samsung Electronics’ flagship Smartphone. According to the industry, LG Chem had been supplying its batteries to Samsung Electronics for many years. However, most of these batteries were used for economic and medium-end Smartphones. Fact that its batteries are now being used for Galaxy Note 10 indicates that its status has changed.
Flagship product indicates a product that represents a company and it is made up of best available parts and it is based on latest technologies. Fact that LG Chem’s battery is used for Galaxy Note 10 means a lot to LG Chem and it is an opportunity that will have LG Chem’s technical skills and qualities recognized by surrounding markets.
It is not confirmed why Samsung Electronics is using LG Chem’s battery for Galaxy Note 10.
“We cannot disclose any information regarding parts that go into our products.” said a representative for Samsung Electronics. LG Chem also stated that it cannot mention any information regarding its customers.
However, it seems that there was a mutual interest between Samsung Electronics that has been pushing to diversify its suppliers and LG Chem that has been looking for new customers.
Samsung Electronics is the world’s largest Smartphone manufacturer that manufactures more than 300 million Smartphones and tens of millions of flagship models annually. As a result, it needs to have stable partners that can supply large quantity of batteries.
Samsung Electronics had been mostly receiving its batteries from Samsung SDI, ATL from China, and Murata from Japan.
Fact that ATL has been removed from Samsung Electronics’ list of battery suppliers for its flagship models since 2017 and that Murata is taking quite sometime to stabilize its business after acquiring SONY’s battery business at the end of 2017 points to few of the reasons why LG Chem has been chosen as Samsung Electronics’ battery supplier for Galaxy Note 10.
It is likely that LG Chem also made efforts to supply its batteries to Samsung Electronics as Smartphone business of its major customer LG Electronics was struggling.
LG Chem supplying its batteries to Samsung Electronics for Galaxy Note 10 draws eyes from the fact that it is a cooperation between two businesses that represent South Korea’s electronic industry. Previously, LG Display also supplied its LCD panels to Samsung Electronics and it will be interesting to see if there will be another cooperation between the two in the near future.
Staff Reporter Yun, Geonil | benyun@etnews.com & Staff Reporter Jung, Hyeonjung | iam@etnews.com