Executive Briefings

Samsung Supplies Controversial Lithium-Ion Batteries for Many Manufacturers of Portable Devices

After selling 2.5 million Galaxy Note 7 phablets in just two weeks, Samsung has issued a worldwide recall and temporary hold on sales because of battery overheating issues and danger of explosion. Since two-thirds of those batteries are manufactured by Samsung SDI, a supplier to many of the top brands of portable computing devices, this development could disrupt the supply chain for new devices for the rest of the year. Samsung SDI is one of the suppliers listed by Apple in their 2016 Supplier List, published in February.

Samsung Supplies Controversial Lithium-Ion Batteries for Many Manufacturers of Portable Devices

"Today, with the context and reality of globalization, organizations are finding that the supply chain is infinitely more complex than it was twenty or thirty years ago," Jason Dea, director of product marketing at environmental health and safety service provider Intelex, said. "Components and parts are coming from all over the world and from multiple vendors and third-party contractors from each domain. By nature, it is a system that is very stressed."

Since Sony released the first commercial lithium-ion battery in 1991 this technology has become the standard for most portable electronic devices, especially laptops, digital cameras, and smartphones.

Twenty years later, in 2011, lithium-ion batteries represented two-thirds of all portable rechargeable battery sales in Japan. According to a recent report by IDtechEX, the lithium-ion battery sector will be a $160bn market by 2025.

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"Today, with the context and reality of globalization, organizations are finding that the supply chain is infinitely more complex than it was twenty or thirty years ago," Jason Dea, director of product marketing at environmental health and safety service provider Intelex, said. "Components and parts are coming from all over the world and from multiple vendors and third-party contractors from each domain. By nature, it is a system that is very stressed."

Since Sony released the first commercial lithium-ion battery in 1991 this technology has become the standard for most portable electronic devices, especially laptops, digital cameras, and smartphones.

Twenty years later, in 2011, lithium-ion batteries represented two-thirds of all portable rechargeable battery sales in Japan. According to a recent report by IDtechEX, the lithium-ion battery sector will be a $160bn market by 2025.

Read Full Article

Samsung Supplies Controversial Lithium-Ion Batteries for Many Manufacturers of Portable Devices