Reports emerging from Korea suggest that Samsung has decided not to use batteries manufactured by Samsung SDI on the Galaxy Note 7 anymore. Samsung SDI supplied Samsung with 70% of the batteries that is found inside the Galaxy Note 7. A certain percentage of the batteries have turned out to be faulty which has led Samsung to issue a global recall of all the Note 7 units it has sold worldwide.

Chinese company ATL supplied Samsung with the rest of the 30% batteries for the Note 7. The decision will also lead Samsung to now source more batteries from ATL.

“As a follow-up of the battery issue, we decided to temporally stop using Samsung SDI’s battery for Galaxy Note 7,” several local media outlets reported on Monday, citing sources from Samsung Electronics.

Samsung SDI is a relatively new battery manufacturer. It started operations in 2014, and supplied a small percentage of batteries to Samsung for the Galaxy S6 and S6 edge last year. This year, the company managed to secure a larger order from Samsung, but with the batteries now turning out to be faulty, the company is looking at some serious financial loss.

Samsung SDI is already expected to bear the expenses of the replacement battery, which when combined with a possible decline in Note 7 sales after this fiasco could lead the company to lose around $16 million in the third quarter of this year alone. Samsung has also estimated that the exploding Note 7 battery fiasco could lead to it suffering losses to the tune of almost $1 billion.