A current excess of battery cells that has driven prices down is expected to end after the second quarter of this year.
According to Digitimes, the supply of battery cells is around 10-15 per cent higher than market demand as a result of aggressive capacity expansion by Japanese and Korean manufacturers.
This has led to manufacturing costs dropping by around five per cent and if demand continues to remain low could fall by a further five per cent.
However, Asian manufacturers are anticipating strong demand for notebook PCs in 2010, as well as demand for electric tools and cars, which means that supply could return to previous levels or even be outstripped.
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