Elentec said on Thursday that it will supply battery packs for LG Electronics’ energy storage systems (ESS) launching next year,
The company will be an original development manufacturer (ODM) for the packs used by LG’s ESS launching for the home next year.
The deal is Elentec’s second ODM deal after its one to contract produce KT&G’s electronic cigarette.
Elentec will be designing the wiring hraness and battery manage system of the ESS as well.
The company’s ODM business accounted for 1.9% of its sales during the second quarter.
This exceeds the sales from its notebook battery pack business, which accounted for 1.2% of its sales during the quarter.
The ODM business for electronic cigarette posted 25.4 billion won in sales during the first half of the year,
This is more than double the sales of 8 billion the business posted last year.
Elentec had previously supplied components to Samsung for handset cases, chargers, battery packs and TV touch panels.
But this business saw lowered sales due to the pandemic.
The company had been looking to expand its battery pack business to offset this decline.
It is supplying battery packs to Honda’s e-scooters.
Elentec recorded 625.6 billion won in sales and 14.9 billion won in operating income last year.