Nokia is offering to replace 46 million batteries for its mobile phones after reports of overheating while charging.
More than 50 mobile phone models are affected
The problems are confined to BL-5C batteries made by Matsushita between December 2005 and November 2006.
More than 250 million BL-5C batteries made for Nokia by other manufacturers are not affected, the company said.
The mobile giant said there had been 100 reports of overheating, and that the problem battery had been used inside more than 50 different phones.
In a statement, the company said: "Nokia has identified that in very rare cases the affected batteries could potentially experience over heating initiated by a short circuit while charging, causing the battery to dislodge."
Nokia said there had been no reports of "serious injuries or property damage" as a result of the overheating.
Customers can check on the Nokia website if the battery in their mobile phone is affected.
"Concerned consumers may want to monitor a mobile device while charging that contains a BL-5C battery subject to this product advisory," the company said.
"I think this will hurt Nokia's brand a lot and that's the
most precious asset Nokia has," Jyske analyst Soren Linde
Nielsen told Reuters news agency.