Samsung sources batteries for its smartphones from multiple suppliers in addition to its SDI subsidiary. It’s now looking to China for the batteries that will go inside its next foldable phones. According to a report by The ELEC, Samsung is considering adopting batteries from a Chinese company called ATL (Amperex Technology Limited). ATL is the world’s leading manufacturer of lithium-ion batteries and also supplies batteries to Apple.
The South Korean tech giant is likely considering using ATL batteries for its foldable phones to cut unit prices down of its existing supplier, Samsung SDI. It is rumored that Samsung will lower the price tags of its forthcoming foldable phones tentatively named the Galaxy Z Fold 4 and Z Flip 4.
Batteries constitute about 4% to 5% of the manufacturing costs of smartphones. A single battery costs the manufacturer around $4 to $6 depending on its capacity and other design attributes. Battery is not the most important element when companies decide the prices of their smartphones but it plays a significant role.
The majority of the batteries used in the Galaxy Z Flip and Galaxy Z Fold series were sourced from Samsung SDI. So if the partnership gets approved, it will be the first time that Samsung will use batteries from ATL for its Galaxy Z series of foldable phones.
Samsung is also reviewing batteries from LG Energy Solution on its latest foldable phones which shows that the company is trying to expand its sources and eliminate expensive suppliers in the chain.
It is worth mentioning that ATL once lost Samsung as customer due to the Galaxy Note 7 fiasco, however, the partnership between the two companies got reinstated and ATL started supplying batteries for the Galaxy A and M series of smartphones. The Chinese battery manufacturer started providing batteries for flagship phones again with the Galaxy S21.
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