Samsung Electronics is in talks with LG Chem to supply batteries for its new smartphones, the Nikkei newspaper reported, citing sources.
Samsung (ssnlf), the world's biggest smartphone maker, scrapped production of the fire-prone Galaxy 7 and said it would take a hit to its operating profit of about $3 billion over the next two quarters as a result.
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.
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Samsung's subsidiary, Samsung SDI, is the dominant battery supplier for the Note 7, supplying around 70% of the batteries globally, according to analyst estimates.
Samsung and LG Chem were not immediately available for comment outside regular business hours.