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Commercial Terms

ODM (Original Design Manufacturer)

A supplier that designs as well as builds the product, in contrast to an OEM arrangement where the buyer brings the design.

Engineering drawings beside a prototype battery pack on a design bench
Who owns what on this bench should be settled before tooling is cut, not afterwards.

The distinction, and why it is muddled

The terms are used loosely across this industry, so it is worth stating what they mean when they are used carefully.

OEM — the buyer owns the design and the supplier manufactures to it. The buyer supplies drawings, specifications, and often the bill of materials.

ODM — the supplier designs the product, and the buyer commissions and brands it. The buyer specifies requirements — voltage, capacity, form factor, markets — and the design work is done by the supplier.

In practice most battery programs sit between the two. A buyer arrives with a frame constraint and a target specification, and the supplier designs the pack that satisfies it. That is closer to ODM, though almost everyone calls it OEM.

What actually matters: who owns what

The label is less important than four questions that should be settled in writing before tooling is cut.

Design ownership. If the supplier designs the enclosure, who owns that design? Can it be sold to a competitor?

Tooling ownership. Tooling is often the largest single cost. Who holds it, and can it move to another factory?

Exclusivity. Is the design exclusive to you, in which territories, and for how long?

Confidentiality. Mutual NDA before technical detail is exchanged, not after.

Ambiguity here is the most expensive thing in a sourcing relationship, and it surfaces only when you want to leave — at which point the leverage has already been decided.

How we work

Our OEM program is built for brands that need full design ownership: mutual NDA before technical exchange, CAD files and BOM available on request, BMS programmable with your own protocol, and regional exclusivity available against volume commitments.

Where you want us to do the design work, we will — and we will still tell you what you own at the end of it. The supplier selection guide covers the questions worth asking every candidate on this, not only us.

The four ownership questions behind an OEM or ODM label Who owns the design? Who owns the tooling? What exclusivity, in which territories? NDA before technical exchange, or after?
The label matters less than these answers. Ambiguity here surfaces only when you want to leave, at which point the leverage has already been allocated.

Working on a pack specification?

Send us the voltage, capacity, current draw, and target markets. We reply with a specification you can review rather than a price with no working shown.