Many button cell makers worldwide are expanding capacity to cash in on the growing TWS (true wireless stereo) headset market, according to industry sources.
According to Strategy Analytics, global shipments of Bluetooth earphones reached over 300 million pairs in 2020, with TWS models experiencing the highest 90% on-year growth in the year.
Despite the staggering sales volumes, only 10% of global consumers are using Bluetooth headsets at the moment, highlighting the sales potential of TWS devices, according to industry sources.
Germany-based Varta, reportedly a primary supplier of battery products for Apple's AirPods devices, recorded growth of 140% to EUR870 million (US$1.034 billion) in 2020.
The company disclosed earlier that it plans to ramp up its annual lithium battery capacity to 80-100 million units to satisfy growing market demand.
China-based Shenzhen Everwin Precision Technology and Chongqing VDL Electronics are also keen on expanding button cell production capacity, the sources indicated.
Taiwan-based lithium-ion battery maker Synergy ScienTech plans to initiate its first-phase expansion project to increase its monthly capacity by 300,000 button cells at the end of second-quarter or early third-quarter 2021. The company currently produces 150,000 button cells of 60mAh energy capacity for TWS devices.
The company said it may launch its second-phase expansion for button cells, depending on clients' demand and market conditions.
The company also plans to boost production capacity for lithium polymer batteries to 4.77 million units a month by the second quarter of 2021, based on clear order visibility extended to the second quarter.
The company has reported revenues of NT$98 million for February, increasing 183.2% from a year earlier.
