Samsung is planning to use batteries made by LG Energy Solution for its Galaxy A and M series of smartphones, TheElec has learned.
The South Korean tech giant has been using batteries made by its compatriot since 2019.
It used them for the now discontinued Galaxy Note series and currently uses them for the flagship Galaxy S series as well as the Galaxy Z series of foldable phones.
But it hasn’t used them for its mid-tier Galaxy A and M series up to now.
Samsung mostly used batteries made by Amperex Technology Limited (ATL) and BYD of China as well as from a joint venture between ATL and Japan’s TDK.
However, due to the Covid-19 pandemic and lockdown measures in China, Samsung is in need to add more suppliers for a stable supply chain, sources said.
Adding LG Energy Solution as a supplier will also increase competition between battery suppliers to drive unit prices down, they added.
Meanwhile, ITM Semiconductor handled the packaging for Samsung for batteries used in the Galaxy A and M series.
It will likely continue to do so for LG Energy Solution’s batteries made in Nanjing, which will be delivered to ITM Semiconductor’s factory in Vietnam, where Samsung has its largest smartphone factory.
The addition of LG Energy Solution in Samsung’s supply chain for mid-tier phones will also likely pressure Samsung SDI to lower its unit prices.
Samsung SDI, as a Samsung affiliate, usually handled the initial batches of batteries used in Samsung devices.
