Samsung to use LG and TDK batteries in smartphones

In recent developments, the news is Samsung is expected to use LG Energy Solutions batteries in the entry to mid-level forthcoming Galaxy M and Galaxy A series smartphones. It is also expected that the clamshell foldable Galaxy Z series and Galaxy S series will follow.

Samsung mobile manufacturing business MX(mobile experience) division is considering using third-party ODM’s (original device manufacturers) batteries in their smartphones. SDI(Samsung Digital Interface) has been supplying the batteries to Samsung phones, the flagship Galaxy Z series has mostly used SDI batteries, but now Samsung is considering LG. LG has been working with Samsung since 2019 on this matter.

ATL(Amperex technology limited) is the Chinese subsidiary and acquisition of TDK, a Japanese multinational electronics corporation. Navitas System, a joint venture between ATL and TDK in India, and BYD, a Chinese conglomerate, has been approached to provide Galaxy M and Galaxy A series batteries.

Samsung first used ATL’s services in 2017 but stopped after the infamous Galaxy Note 7 incident, i.e., smartphones catching fire incidents, has started resupplying batteries even for premium phones, also provided Galaxy S21 with batteries, now is in consideration for entry-level Galaxy M and Galaxy A series for batteries.

ITM Semiconductor is a subsidiary of NICE( National Information & Credit Evaluation), Korea, which will oversee the packaging and transportation of batteries after the cells have been manufactured by LG energy Solutions, Nanjing plant at the local plant in Vietnam for protection circuits installment and then resupplied to Samsung Electronics’ smartphone plant.

As SDI is an initial supplier and needed to come up with a solution to reduce cost, therefore the Samsung MX division took this decision to reduce the cost and diversify their investment in multiple ODMs and procurement of resources; this will also result in competition among the other third party suppliers hence cutting the cost ultimately.

Samsung is most likely to consider LG and other ODMs because it not only reduces the cost of R&D and testing but also the ODM’s have better expertise in the area, and it will give some extra time and profits which Samsung can cover in the net profits from their sale in the end.

Because of the lousy demand in the smartphone markets since SARS COVID 19 and the semiconductor equipment/parts shortage (read more here), this could be good news for some who want to buy the upcoming smartphone from Samsung; it would probably be a bit lighter on your wallet.

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