Battery pack firm Elentec has started its heated e-cigarette original design manufacturing (ODM) business, TheElec has learned.
The company is hoping that the new venture will become one of its new growth engines alongside e-scooter battery packs.
Elentec has supplied South Korean cigarette firm KT&G with its lil SOLID 2.0 heated e-cigarette.
The circular battery, battery protective circuit and main boards are made in China and assembled in Malaysia, before being shipped to South Korea, people familiar with the matter said.
The new e-cigarette business will likely contribute a little over 2 billion won in sales this year. The business marked 1.6 billion won in accumulated sales as of the third quarter.
Elentec posted 729 billion won in sales last year, so its e-cigarette business is just starting.
The son of CEO and chairman Lee Se-yong, Lee Hae-sung, is stressing the importance of the new business to employees, the people said.
The e-cigarette uses 18650 batteries. Minus the area where the cigarette is attached, the structure of the device is made in a similar manner to battery packs.
Battery output needs to boosted at once to heat the cigarette and safety is important for the device.
Lil SOLID 2.0 is designed to support various puffs, just like a real cigarette.
Battery protective circuit firm ITM Semiconductor is also entering the batter pack and e-cigarette ODM businesses.