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Asus is struggling to source batteries for the Eee PC following a fire at an LG Chem plant earlier this month claims Kevin Lin, vice president of Asus's sales department, speaking to DigiTimes.

The shortage

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is causing huge supply problems, explains Lin, with a 50% supply shortage in Taiwan and Hong Kong and 70% worldwide.

A UK spokesman for Asus told us that there was a "minor problem" with components, but that it had already been resolved.

However, members of the PC Pro team have placed orders for Eee PCs which have not been fulfilled because of stock shortages.

Asus is far from alone in suffering from battery shortages: Dell, HP and others have also reported supply problems.

Despite these current problems, Asus remains confident of strong Eee PC sales in the future, with Lin claiming that Asus expects to sell five million Eee PCs in 2008, with retail sales of 650,000-700,000 per quarter alone.

The report also announces that the company is expected to introduce a second generation Eee PC with an 8.9in touchscreen and GPS in May or June, which will cost $500.