In addition to its SDI subsidiary, Samsung sources batteries for its smartphones from a variety of suppliers. The company is now looking to China for the batteries it needs for its next-generation foldable phones. According to The Elec, Samsung is considering using batteries from a Chinese company called ATL (Amperex Technology Limited). ATL is the world's leading lithium-ion battery manufacturer and also supplies batteries to Apple.
Samsung may be considering using ATL batteries for its foldable phones to reduce the unit price from its existing supplier, Samsung SDI. Samsung is rumored to be lowering the prices of its upcoming foldable phones, tentatively named the Galaxy Z Fold 4 and Z Flip 4.
Batteries account for about 4% to 5% of the manufacturing cost of a smartphone. Depending on capacity and other design attributes, a battery costs manufacturers about $4 to $6. The battery is not the most important factor when companies decide the price of a smartphone, but it plays an important role.
Most of the batteries used in the Galaxy Z Flip and Galaxy Z Fold series come from Samsung SDI. Therefore, if the partnership is approved, it will be the first time that Samsung will use ATL's batteries for its Galaxy Z series foldable phones.
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