LG Energy Solution will supply 'coin cell batteries' to Samsung Electronics. Coin cell batteries are coin-shaped lithium-ion batteries that are applied to wireless earphones. It is the first time that LG Energy Solution mass-produces and supplies coin cell batteries.
According to the industry on the 22nd, LG Energy Solution has decided to supply coin cell batteries to Samsung Electronics for the wireless earphone 'Galaxy Buds series'. It has been identified that the two companies signed a supply contract in July. LG Energy Solution started preparing for coin cell battery production with the goal of mass production in the 4Q quarter of this year.
An industry official familiar with this said, “LG Energy Solution plans to establish a battery production line for wireless earphones at its Ochang plant in North Chungcheong Province. It is for the coin cell line that is different from the existing ultra-small round battery.”
This is the first time that LG Energy Solutionwill mass-produce coin cell batteries. Samsung Electronics became the first customer in the coin cell battery business of LG Energy Solution.
LGEnergy Solution entered the coin cell battery market and secured Samsung Electronics as a customer due to the rapidly increasing demand for coin cell batteries in the wireless earphone market.
LG Energy Solution supplied batteries for Apple's wireless earphone 'AirPods'. The bean sprout-shaped AirPods are equipped with a small round stick-shaped battery.
However, the design trend of wireless earphone market has changed, as wireless earphone manufacturers started making earphones in a circular shape by getting rid of the rod shape. Apple AirPods Pro and Samsung Galaxy Buds are the major round wireless earphones. As the product design changed, the battery also changed, increasing the demand for coin-shaped coin cell batteries instead of thin and long batteries.
LG Energy Solutions has been supplying batteries for Apple AirPods since 2016, but the supply is known to have stopped since this year. Apple increased the supply of coin cell batteries with the success of the AirPods Pro, but it is reported that LG Energy Solution missed the time. The company then spurred the development of coin cell batteries and has even succeeded in supplying it to Samsung Electronics.
Samsung Electronics ranks third in the world after Apple and Xiaomi in the wireless earphone market. According to market research firm Counterpoint Research, Samsung Electronics' wireless earphone sales this year are expected to be 22 million units, an increase by about 6 million units from 16 million units last year. Samsung has used coin cell batteries from Germany's Varta, China's EVE Energy and Samsung SDI for wireless earphones. It is interpreted to have addedLG Energy Solution to the battery supply chain in accordance with the expansion of wireless earphone market and increase in volume.
The battery market for wireless earphones is expected to grow at a CAGR of 26% to 1.2 billion cells in 2025. Competition is fierce among IT companies such as Apple, Xiaomi, and Samsung Electronics, and audio equipment companies such as Bose, B&O, and Sony. LG Energy Solutions is expected to drive the supply of coin cell batteries, starting with Samsung Electronics.
Regarding the supply to Samsung Electronics, an official from LG Energy Solutions said, "We cannot confirm anything related to our customer."
Reporter Ji-woong Kim firstname.lastname@example.org, Reporter Gun-il Yoon email@example.com