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LG Chem fire will force major laptop suppliers to switch to Chinese batteries

According to one source, Dell has reported a shortage of laptop batteries caused by a fire at one of the largest manufacturers of this type of product.

We are talking about the Korean LG Chem, damaged by fire at the beginning of the month. A scarcity instantly pushed the prices of Dell batteries sold separately from laptops. The company is currently in talks to buy batteries from other suppliers to avoid higher laptop prices. However, the source notes, it is possible to compensate for the increase in battery prices by using other components, for example, memory.

The consequences of a fire could be significant: for example, the second largest Taiwanese laptop manufacturer, ASUSTeK Computer, may lose up to 40% of ordered batteries in the second quarter.

Another large company, Hewlett-Packard (HP), also suffers from battery shortages. Her spokesman confirmed that the company is looking for alternative suppliers. Moreover, according to the latest information, an alternative has already been found. According to a source citing the Commercial Times, first-tier laptop makers are looking to buy batteries from China. HP has allegedly already made a decision to buy Chinese batteries; ASUSTeK Computer expects to start certification soon. However, even if the certification is successful, the batteries will begin to arrive no earlier than in the second half of the year.

Currently, more than 90% of all laptop batteries are manufactured by five companies: Sanyo, Sony, Matsushita, Samsung and LG.

Sources: Reuters, DigiTimes, DailyTech

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