In what would be the largest-ever consumer electronics recall, Nokia Corp. offered Tuesday to replace as many as 46 million mobile phone batteries made by Matsushita Electric Industrial Co. that are at risk of overheating.
Nokia, the world's biggest mobile phone maker, said there have been about 100 cases of overheating worldwide, with no reports of serious injury or damage to property. The affected Nokia-branded BL-5C batteries were made by Matsushita Battery Industrial Co. between December 2005 and November 2006, Nokia, based in Espoo, Finland, said in a statement.
Matsushita Electric will discuss replacement costs with Nokia, said Akira Kadota, a spokesman in Tokyo for the Osaka-based company.
The latest incident builds on a series of recalls in the past year that has drawn attention to quality at Japan's electronics makers. In August 2006, Sony Corp. began replacing 9.6 million notebook computer batteries, then the biggest recall in consumer electronics history.
A rechargeable mobile phone battery may cost about ¥300 to ¥450 to produce, said Haruo Sato, an analyst at Tokai Tokyo Securities Co., who covers companies including battery maker NEC Tokin Corp. and Softbank Corp., Japan's third-biggest mobile phone operator.
Based on Sato's estimate, Matsushita could incur expenses of at least ¥13.8 billion.
"The supplier is responsible for quality," said Arja Suominen, a Nokia spokeswoman in Helsinki.
She said it's too early to estimate the potential cost or how many batteries will be replaced.
Nokia said some of the BL-5C batteries may overheat because of a short circuit while they are being charged. Consumers with the batteries can ask for replacements, Nokia said.
The company sold 101 million mobile phones in the second quarter, a 29 percent increase from a year earlier.
In Japan, Nokia charges ¥6,600 for a battery for its E61 smart phone, and ¥3,300 for all other models, according to the company's Japanese Web site.