Battery factory fire results in shortage

By Jim Carbone -- Purchasing, 4/2/2008 9:53:00 AM

A fire last month at a LG Chem battery factory has caused a shortage of lithium-ion batteries used in laptop computers resulted in higher battery pack prices. The fire caused the shut down of the facility in Ochang, South Korea. Company officials said the plant could be shut down for two or three months.

LG Chem has two rechargeable battery plants in South Korea. The plant that was shut down has a monthly production capacity of 13.5 million cells. The company's total monthly rechargeable battery production capacity is 23.5 million cells. LG Chem is the second biggest South Korean battery make.

LG Electronics Inc., which is supplied rechargeable batteries from LG Chem for its laptop computers, said the fire won't affect its notebook computer business.

Dell Computer says the computer industry is now experiencing a shortage of laptop batteries due in part to the fire. Dell says it is working with other suppliers to limit any price increases.

Dell, the world's second-largest PC maker, says prices of its separately sold batteries used as replacements, have gone up because of the shortage.

LG Chem competes in the notebook battery business with Samsung and Japan's Sony Corp among others.

Also see:
Nokia to replace batteries