Japan's Matsushita to pay for Nokia batteries

A Japanese supplier will meet all costs stemming from a warning this month about faulty batteries issued by handset leader Nokia, an Associated Press report, quoting Nokia, said.

The Associated Press report said Nokia advised customers August 14 that up to 46 million batteries used in some of its handsets could pose a risk of overheating.

The advisory applied to Nokia BL-5C batteries made by Matsushita Battery Industrial between December 2005 and November 2006, the report said.

Matsushita estimated that replacing the batteries would cost 10 billion yen ($85 million) to 20 billion yen ($170 million), it added.

Nokia said 100 incidents of overheating in the Matsushita-made batteries had been reported worldwide, but there has been no serious injuries or damage. All cases of overheating occurred while the phones were being charged, Nokia said.

Nokia did not issue a recall of the batteries, but said it would replace any battery covered by the advisory, the report said.

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