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Factory Fire Sparks a Worldwide Laptop Battery Shortage

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Joseph LopezFriday, April 18, 2008



Last month, LG Chem's Ochang plant experienced a fire that caused them to halt production of their much needed battery packs for Dell, HP, and Asustek. All three companies have since then raised the prices on their battery packs and are expected to raise the prices even more until the plant gets back on track. As many of us look on, desperate consumers for Dell, HP, and Asustek battery packs strive to find alternative solutions.

"We sell battery packs. The prices of those battery packs for people ordering extra batteries have gone up," Dell spokesman Jess Blackburn said, declining to say by how much.

He added that Dell is "not commenting on what impact, if any, that this is having on the prices of our products," referring to notebook PCs.

"The industry is experiencing battery supply constraints because of these problems," Blackburn added. "Therefore, pricing is being impacted by current availability. But we are working with our partners throughout our supply chain to reduce the impact on our customers.

LG Chem is the second largest South Korean battery manufacturer. The fire contributed to a worldwide battery shortage that could affect up to 40 percent of second-quarter shipments at Asustek Computer, Taiwans No. 2 PC maker, an Asustek executive told Reuters.

The exact cause of the fire is unknown; however, it is most likely linked to lithium’s explosive reaction to air. LG Chem is expected to make a comeback in May, but don't count on it as anything could happen. At the moment, prices of OEM battery packs for Dell, HP, and Asustek have increased everywhere, including here at AtBatt.com. As supply diminishes, many consumers might have trouble finding available battery packs at this time. The question is: Buy the battery packs now?, or buy them later and risk having the prices jump even more...

After last year's long string of battery re-calls, this may be the first time the batteries catch on fire before they are put into their laptops.
 
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