The maker of the batteries that prompted Finnish cell phone maker Nokia (NYSE: NOK)  to recall up to 46 million handset batteries will pay up to US$172 million of the costs associated with replacing them.

Japanese electronics giant Matsushita, perhaps best known for its Panasonic  brand of electronics gear, agreed to fund the direct costs associated with the replacing the BL-5C 3.7 volt batteries used in dozens of Nokia handsets.

Nokia issued the recall early last week after receiving reports that as many as 100 of the batteries had problems connecting to overheating during charging. Nokia at the time said the problem could cause the batteries to "dislodge" but emphasized there had been no reports of injuries as a result.


Matsushita will pay for the costs of logistics, operation of a call center connected to the advisory and the cost of replacement batteries, said Masatsugu Kondo, the president of the company's battery division.

"The safety of our customers and the reliability and quality of our products are our top priorities," said Robert Andersson, head of Nokia customer and market operations. "We are pleased with the good cooperation between Nokia and Matsushita. Together, we aim to serve consumers in the best possible manner and minimize the inconvenience this issue could cause them."