(TDK Corp), a Japanese TDK group, says it wants to double its revenue from its lithium battery business over the next five years, and its use will not be limited to smartphones and personal computers. This is the first time that an executive of the company has revealed its ambitious goals. The Tokyo-based parts maker is an important supplier to many of the world's top smartphone, tablet and game console brands and has benefited from the surge in sales triggered by the epidemic. Shigenao Ishiguro, the company's president, said that as that demand began to fade, the company hoped to maintain sales growth by expanding its product lineup to larger battery packs for electric scooters, residential systems and cellular base stations.
Half of TDK's revenue comes from its Amperex Technology Limited (ATL) battery business. In fiscal year 2021, ATL realized revenue of 740 billion yen ($6.4 billion). Hong Kong-based ATL formed a joint venture with Ningde Times in April last year to develop medium-sized battery packs for electric scooters, industrial and residential applications.
"We are going to be a challenger to the medium-sized battery market, and I believe we can quickly become a major player in this area," said Ishiguro, 64. "over the next five to six years, these new areas will generate as much revenue as we currently get from small devices."
Ishiguro said it would not enter the new battery market at the expense of TDK's existing small device market. He believes that this scale upgrade is necessary to seize the fastest-growing opportunities in the rechargeable battery market, such as medium-sized batteries and electric cars. He added that not expanding its product range would pose greater risks, even though the company already enjoys a strong position in the small equipment supply market.
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