By Lee Min-hyung
Samsung SDI is moving to increase its investment in the golf cart industry, which is adopting eco-friendly lithium-ion batteries as a major power source.
The Seoul-based firm said Sunday the golf cart battery market has massive growth potential, driven by the industry-wide movement to scrap the dominant lead-acid batteries and replace them with energy-efficient lithium-ion ones.
The company estimates 65 percent of some 1.1 million golf carts, used at about 34,000 golf courses around the world, have lead-acid batteries. Most of the rest have engines that use fossil fuels. Those with lithium-ion batteries account for less than 1 percent, due the industry’s infancy, according to the battery affiliate of Samsung Group.
“The number of golf carts with lithium-ion batteries will increase steeply, with its share among all the existing golf carts expected to reach 14 percent this year,” a Samsung SDI official said. “An average of 350 to 600 cylindrical batteries are required for a golf cart. This is equal to 400 million battery cells if all the remaining golf carts adopt lithium-ion batteries.”
Lithium-ion batteries are becoming popular because they last twice as long as lead-acid batteries, according to the company. They also do not require extra maintenance and have little chance of corrosion.
Samsung SDI is aiming to tap deeper into this sector as its next core revenue area while battery rivalry intensifies in markets such as electric vehicles (EV) and mobile devices.
Last week, the company signed a cylindrical battery supply contract with the world’s largest golf cart maker, E-Z-GO, based in the United States. At the time, Samsung SDI talked up its battery management system (BMS) that comes bundled with its battery cells. The automated system helps users keep track of information such as the battery’s remaining lifespan, charging status and temperature. The latest deal comes about two years after Samsung SDI clinched a contract with local golf cart maker DY.
The company is optimistic about the industry’s potential, as a wider range of products _ including electric bicycles, EVs and portable IT devices _ are switching to cylindrical batteries because of lifespan, high-power and low-cost maintenance.
“We are going to continue to lead the global lithium-ion batteries industry by signing multiple contracts with other golf cart manufacturers here and abroad, as part of our bid to find new growth areas,” the company official said.