November 23, 2024

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[THE INVESTOR] Tech giant Samsung Electronics reportedly plans to deploy batteries built by LG Chem, a battery business arm of LG Group, for its upcoming smartphones, possibly starting with Galaxy Note 8, industry sources said on Dec. 19.

Samsung has been discussing supply deals with battery makers since the recall of the fire-prone Galaxy Note 7 in October. Adding to existing partners Samsung SDI and China’s ATL, the company is said to be in talks with LG Chem.

“The talks have not yet been completed but it seems highly likely for the two firms to sign a deal,” said an industry source on condition of anonymity.

Considering it takes more than six months to design, test and produce batteries for a new smartphone, sources predict the Note 7’s successor, tentatively called Note 8, would become the first Samsung phones to be powered by the LG batteries.

Samsung has rarely used parts from its crosstown rival LG. But after the unexpected discontinuation of the Note phone, the company is said to be seeking to diversify suppliers, including battery makers.

Samsung has also reportedly tapped LG Display, the display-making unit of LG, to secure liquid-crystal displays for TVs after its key supplier Sharp recently notified it would stop supplying the panels from next year.

On the possible supply to Samsung, LG Chem shares increased 3.39 percent to 259,500 won (US$218.50) on the day.

By Kim Young-won (wone0102@heraldcorp.com)