ITM to make batteries for new LG smartphone

ITM Semiconductor will manufacturer the batteries that will be used in LG Electronics’ new smartphone launching next year, TheElec has learned.

ITM Semiconductor has previously mostly assembled battery packs for Samsung’s mobile division. It also supplied Samsung with its battery protection circuits. Last year, it won Apple, Huawei, Xiaomi and Vivo and customers.

The volume for LG’s order isn’t large but winning the deal means ITM Semiconductor have now secured all major smartphone makers as its customers.

LG Energy Solution will be supplying the cells. ITM will package these cells at its factory in Vietnam. It will apply protection module package, which integrates MOSFET and the circuit board, for the cells.

This is ITM’s first deal with LG Electronics. ITM have previously assembled LG Energy Solution’s cells to supply battery pack for Samsung Electronics’ Galaxy S11.

Samsung and LG are expanding the use of original design manufacturers in their smartphone businesses. Chinese battery makers ATL and BYD supply batteries for smartphones of both Korean companies.

ITM’s main revenue comes from protection circuit and battery packs for small batteries used in smartphones, tablets and wireless earphones. 

It is planning to expand to electric vehicles, e-scooters and energy storage systems. It is also contract producing e-cigarettes for KT&G and Philip Morris.

LG Energy Solution played a key role in ITM supplying batteries to LG Electronics, people familiar with the matter said. The pair will likely collaborate in other projects besides smartphones in the future, they said.

ITM is planning to construct is fifth factory in Vietnam. Its fourth factory was completed three months prior to the announcement. ITM will spend 54.8 billion won for the new factory.