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Fire at LG Chem battery plant means laptop battery shortage, higher prices

lg_chem

As the result of a fire at the LG Chem on March 3rd, the computer industry is experiencing a laptop battery shortage which is already beginning to effect the price of laptop batteries at Dell.

LG Chem is the second largest battery maker in South Korea, and one of the top three in the world along with Samsung SDI and Sony Corp.

The plant is expected to begin production again in two to three months, but until then there will be battery supply constraints that have already caused Dell to increase the price to customers who order additional batteries for their laptops and Asus is saying that this could effect up to 40% of their second-quarter shipments.

HP spokesperson Mike Hockey said that HP is in “regular communication” with LG Chem and that “the full extent of the impact to HP and other OEMs is still being determined.”

Its estimated that the fire end up costing LG Chem up to $85 million in lost revenue.

[Via Yahoo News]

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