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| Seen are Samsung SDI's small-sized lithium ion batteries. / Courtesy of Samsung SDI |
By Baek Byung-yeul
Samsung SDI, the battery-making affiliate of Samsung Group, has been increasing its focus on the small-sized lithium-ion battery sector as the category is gaining popularity thanks to growing demand from cordless power tools and electric bikes.
The small-sized lithium-ion battery market is comprised of cylindrical batteries and polymer batteries. While polymer batteries are used for IT devices such as smartphones and notebook PCs, the cylindrical batteries are used for cordless power tools that require high-power and high-value batteries.
Among the small batteries, the cylindrical batteries is especially gaining popularity as more products go cordless. Thanks to the growing demand for the cylindrical batteries, Samsung SDI, the world's No.1 player in the sector, is expected to earn more than 400 billion won ($359 million) in operating profit this year, according to reports from Samsung Securities and Mirae Asset Daewoo.
According to market researcher B3, the shipments of small batteries had grown from 4.7 billion in 2014 to 6.9 billion in 2017. More than 7.9 billion batteries are expected to be sold this year.
The researcher said cylindrical batteries account for more than 50 percent in the entire small battery market. The demand for cylindrical batteries last year was 3.75 billion, accounting for 55 percent of the entire small battery market, and the figure is expected to surpass 4.6 billion this year.
Samsung SDI struggled when the company first entered the rechargeable lithium-ion battery business in 2000, but now it has maintained its No. 1 position since 2010.
The company especially has been a leading player in batteries for the power tool market since 2011 and has been taking a global market share of more than 50 percent since 2013.
Samsung SDI has developed leading technologies in the cylindrical battery market as it began mass producing of "21700" cylindrical battery last year.
Known as next-generation battery technology, the "21700" battery is 21 millimeters in diameter and 70 millimeters in height with capacity that is 50 percent larger than 18650 battery technology. The 21700 battery is expected to be used as a standard for applications in energy storage system (ESS), electric power tools and electric vehicles.
