China's ATL now fulltime Samsung battery supplier

Writer and Social entrepreneur.

According to a Reuters report,Samsung Electronics will stop sourcing Galaxy Note 7 batteries from Samsung SDI and make a full switch to Chinese company Amperex Technology Ltd. According to knowledgeable analysts, Samsung SDI used to be busy with producing 70% of the batteries for global versions of the Galaxy Note 7, with ATL handling the remaining 30% for handsets mainly distributed in China.

China's ATL now fulltime Samsung battery supplier
China’s ATL now fulltime Samsung battery supplier

However, Samsung SDI’s batteries proved faulty as reports of the Note 7 catching fire during charging started spreading and led to the smartphone’s global recall. Very few have originated from China, however, and the country hasn’t been part of the recall to the same degree, which means ATL batteries are harmless and good to go.

As an industry leader, Samsung SDI has tried to dominate the market. They released a European home product in 2014 which is briskly sold in the European market through their partnerships with Hanwha Q-Cell and Sharp, etc. And they have also made large-scale supply to the demonstration project for frequency regulation(F/R) done by KEPCO. However, they are not complacent about these achievements but still making efforts to intensify our marketing to exploit a new market. For instance, in 2015, they signed a MOU with ABB, a global strategic installation company for developing micro grid ESS business, gaining a foothold for a new ESS market. Another example is an establishment of a joint venture in 2014 with Sungrow, China’s largest PV inverter manufacturer, for business cooperation, laying a foundation for penetrating into the Chinese ESS market.

Reports has it that ATL will, therefore, take over the rest of the Note 7’s battery supply for the next quarter or two. The head of the company further confirmed that ATL received a “significant increase” in business this month, without referring to Samsung or other clients specifically. ATL is a supplier for Apple as well. The information from Reuters has been repeated by the official China Daily newspaper, as well as South Korea’s Yonhap news agency. Thus, it’s highly likely that all Galaxy Note 7 units sold (or replaced) this and next quarter will operate with ATL-supplied batteries.

I really commend Samsung for this, but who would want to go out of business because of an ‘exploding battery’.