FDK CORPORATION

Business Details

The Battery Business manufactures and sells dry batteries and their applied products and rechargeable batteries. Main products include Nickel-Metal Hydride Batteries, Lithium Batteries, Alkaline Batteries, and the Equipment-Related Business. The segment operates across a wide range of markets, including consumer and industrial applications both domestically and overseas, as well as security, smart meters, and residential alarm applications. Manufacturing subsidiaries include BAOTOU FDK CO., LTD. (China) and XIAMEN FDK CORPORATION (China), and the segment sells globally through FDK AMERICA, INC. and FDK ELECTRONICS GMBH (Europe), among others.

Recent Overview

Sales declined but profit increased due to raw materials, foreign exchange, and cost reduction effects; alkaline battery impairment continued

Net sales of the Battery Business in FY2026 (ending March 2026) were ¥48,215 million (down ¥740 million year on year). While the decline in Nickel-Metal Hydride Battery sales for overseas home appliances, the pause in the Equipment-Related Business, and deteriorating consumer behavior for Alkaline Batteries weighed on results, Lithium Battery sales increased due to growth in domestic applications. On the profit side, segment profit improved significantly to ¥1,707 million (up ¥564 million year on year), owing to raw material price fluctuations, cost reductions through technical value engineering, and favorable foreign exchange effects. An impairment loss of ¥322 million related to alkaline batteries was recorded again. New developments also progressed, including the conclusion of a brand license agreement with Energizer Holdings, Inc. and the adoption of Nickel-Zinc Batteries in a solar carport demonstration experiment.

Key Products

Growth Drivers

• Continued increase in demand for Lithium Batteries in domestic security, smart meter, and residential alarm applications
• Improved profitability through cost reduction via technical value engineering and enhanced ability to respond to raw material price fluctuations
• Expansion of the SMD Compact All-Solid-State Battery product lineup (high-energy-density model and constant-voltage-charging-compatible model) and development of new applications
• Deployment of Nickel-Zinc Batteries into new applications such as grid-free solar carports
• Expansion of Alkaline Battery brand recognition and sales through the brand license agreement with Energizer Holdings, Inc.
• Promotion of the "multifaceted expansion of existing businesses" and "diversification of the business portfolio" measures under the next medium-term business plan "R3"
• Development of new markets through next-generation materials such as high-capacity AB2-type hydrogen storage alloy for hydrogen storage tanks

Risks

• Risk of significant fluctuations in raw material prices for nickel, zinc, lithium, and rare earth elements
• Risk of rising procurement costs due to China's rare earth export restrictions
• Impact on business performance from foreign exchange fluctuations, given the high proportion of overseas sales (Europe, Asia, and the Americas combined account for approximately 32% of net sales)
• Risk of continued underperformance in the Alkaline Battery business and additional fixed asset impairment charges (impairment losses exceeding ¥300 million recorded for two consecutive periods)
• Instability in the Equipment-Related Business due to fluctuations in automotive-related equipment demand
• Risk of continued weak demand for Nickel-Metal Hydride Batteries for overseas home appliances
• Impact on import/export costs from U.S. trade policy and tariff developments (not incorporated into earnings forecasts)
• Impact on sales to Asia from the slowdown in the Chinese economy