“Samsung is considering buying batteries from LG”
Samsung is reportedly in talks with LG Chem for the supply of batteries that will then be included in the successor to the recalled Galaxy Note 7. The manufacturer would negotiate with its rival to be less dependent on a few providers.
Samsung would sit around the table with the Chinese company ATL for the supply of batteries. The Korean electronics company already sought refuge with ATL for the supply of batteries for the Note 7, after it turned out that the batteries of that device could catch fire. Those original batteries came from Samsung’s own battery division, Samsung SDI. The ATL batteries of revised Note 7’s were also found to be able to explode.
There is a good chance that Samsung will conclude an agreement with both LG and ATL about the supply of batteries, according to sources from the Korean The Investor. It is unusual for Samsung to purchase products from its major domestic competitor. However, after Samsung had to hastily look for alternative suppliers of Note 7 parts, it wants to be able to spread its supply.
Samsung would also be in talks with LG’s display division about purchasing LCDs. Sharp recently announced that it would no longer supply LCDs to Samsung from next year. The joint venture that Sharp forms with Foxconn in the LCD field, Sakai Display Products, has decided to do this because it wants to compete with Samsung in the TV market.