Samsung Reportedly in Talks With LG Chem for New Smartphone Batteries

Samsung Electronics Co Ltd is in talks with LG Chem Ltd to supply batteries for its new smartphones, the Nikkei newspaper reported, citing sources.

Samsung, the world's biggest smartphone maker, scrapped production of the fire-prone Galaxy Note 7 and said it would take a hit to its operating profit of about $3 billion over the next two quarters as a result.

(Also see: Galaxy Note 7 Fiasco Has Cast a Shadow of Gloom on Samsung, Say Employees)

The company had blamed faulty batteries for the original problem in its flagship device, but has given no indication about the cause of the overheating seen in the replacements.

The companies are discussing ways to supply batteries to Samsung's new smartphones starting next year, the report said.

Samsung's subsidiary, Samsung SDI Co Ltd, is the dominant battery supplier for the Galaxy Note 7, supplying around 70 percent of the batteries globally, according to analyst estimates.

Samsung and LG Chem were not immediately available for comment outside regular business hours.

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