Battery price war intensify
The two major rechargeable batteries makers, Panasonic and Samsung may deepen price cut this year due to over produced of Lithium-ion battery.
The Lithium-ion batteries may tumble 19% in 2010; this will be the bigger drop in price in the recent five years. The price may even drop down further to as much as 25% if the productions continue over supply.
According to reliable source, the South Korean battery makers may better cope with lower prices than the Japanese battery makers, because the South Korean purchased the raw material from China mainland which is cheaper and faster lead time turn over. The strengthen Yen will also make Korean products more competitive.
Samsung, based in Yongin will likely overtake Panasonic in Japan as the world top producer of lithium-ion batteries this year.
The Japanese battery makers anticipate a difficult environment for the battery business because of competition and price declines.
The Japanese and Korean makers are playing an endurance game which is eroding in profitability. This is good for the consumers.
Cheaper batteries are a good thing. I just can’t believe they would produce so much excess.