Mobile phone batteries: Li-ion mobile phone batteries form bulk of production

Li-polymer batteries are emerging popular as mobile phones get smaller and lighter, but Li-ion remains the best-seller.

Even as Li-ion models dominate China’s mobile phone battery industry, turnout of Li-polymer versions will gain ground in the coming months. This comes as more compact and multimedia-enriched handsets that can maximize Li-polymer batteries’ light weight, smaller form factor and large capacity enter the market.

Li-polymers accounted for only 17 percent of the country’s output in 2008 as cost-related issues hampered production.

Over the past months, metal and electrolyte costs have increased substantially. Lead and nickel, for example, tripled.

Growing expenditure, particularly for materials, has resulted in the influx of foreign makers of mobile phone batteries into China to control manufacturing costs, giving rise to intense competition. According to some manufacturers, low value is placed on domestic mobile phone batteries when compared with versions from top-tier providers. A Nokia model, for example, can exceed $20 while the OEM cost at the China factory is only $3.50.

In addition, the current economic downturn has resulted in sharp decreases in exports. Small companies have been hit the hardest as sales plunged between 30 and 40 percent in past months. In fact, makers are predicting a series of consolidation with smaller players eventually withdrawing from the industry altogether.

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