Protect your business against the growing risk of lithium-ion battery fires

Due to their lightweight and long-lasting nature, lithium-ion (li-ion) batteries are a popular type of rechargeable battery which are commonly used in a number of electronic devices, such as laptops, mobile phones, electric cars and e-scooters. Whilst these batteries are efficient, they also pose a serious fire risk, with an increased number of incidents having been reported in recent years.

In this article, we take a look at the growing fire risks associated with li-ion batteries, what causes them to catch fire and ways in which your business can mitigate against these accidents happening.

Lithium battery fires on the rise

In 2023, the Department for Transport predicted that around 240 fires that involved li-ion batteries were caused by e-bikes and e-scooters¹. But it is not just electric vehicles that are contributing to this uplift in battery fires. The British Safety Council estimate that there are over 200 fires every year because of the way lithium-ion batteries are disposed of in both business and domestic waste².

Due to this increase in battery fires, many underwriters no longer see li-ion batteries and the devices that contain them as an emerging risk, but one that is recognised and considered when placing cover. It’s therefore important that business owners and those who are responsible for fire safety in the workplace, understand what can cause battery fires and the measures they can take in order to prevent them from happening.

Thermal runaway: what is it and how can it happen?

Thermal runaway is when a battery's temperature increases uncontrollably, which in turn can lead to them catching fire or even exploding. Due to the materials used to make lithium-ion batteries being highly flammable, the risk is of this happening becomes even more likely if the battery:

• Is overcharged - Leaving devices plugged in for excessive amounts of time can cause the voltage to become too high, creating extreme heat.
• Becomes damaged – Batteries that are dropped or pierced can cause the internal structure to become damaged, which could lead to them short circuiting.
• Has been poorly manufactured – Errors in design and faults in production could make batteries more susceptible to short circuiting and overheating.
• Is not stored properly – Li-ion batteries should be kept in cool and well-ventilated areas, otherwise they run the increased risk of thermal runaway.

Addressing the knowledge gap

Despite the growing volume of lithium-ion battery fires and the fact that a typical workplace will use lots of devices that contain li-ion batteries, there is still a gap between the number of fires and the awareness of such instances. A survey of more than 500 organisations, carried out by Firechief Global between September 2023 and February 2024, revealed that 71% had not updated their fire risk assessments to cover the risk of lithium-ion battery fires, with only 15% having done so and another 14% unsure³.

As a business owner and employer, you are legally required under The Regulatory Reform (Fire Safety) Order 2005 to ensure that a fire risk assessment is carried out by a competent person, which looks at the premises as a whole to ensure all potential risks are considered, including the use, storage and disposal of li-ion batteries⁴.

Ways to mitigate and prevent battery fires

It’s important that everyone in your organisation is aware of the risks when using lithium-ion batteries, to ensure safe use and avoid accidents from happening. Having a clear Battery Monitoring System (BMS) is vital. Below are just some of the ways you can help prevent battery fires from occurring:

• Charging them correctly – When charging equipment, ensure that staff are remembering to use the charger that was supplied by the manufacturer of the device and at the right voltage.
• Damage and defects – Make sure to frequently check batteries for any signs of damage or faults on a regular basis. Ensure that your employees understand not to use damaged or defective batteries and that they know what to do in case of emergency, should a battery catch fire.
• Suitable storage – When handling and storing li-ion batteries, make sure the area in which they are kept is dry, cool, well-ventilated and clear of flammable materials and sharp objects. Also limit the size of the storage area and ringfence a section specifically for lithium batteries, keeping them secure in mental containers or fireproof bags.
• Monitoring technology – Tools such as thermal imaging cameras can be used to check how hot li-ion batteries get during storage or whilst charging.
• Safe disposal – It’s important that lithium-ion batteries are disposed of properly and in accordance with local and national rules. Don’t just throw batteries into regular waste; take them to a recycling centre that can safely dispose of hazardous materials correctly.

Speak to one of our specialists

To get help with your business’s insurance programme and to check there are no conditions, warranties, or exclusions regarding lithium-ion batteries and such devices on your policy, get in touch with a member of our specialist team on 020 7977 4800 or email srisenquiries@specialistrisk.com

Article sources:

1: Department for Transport, February 2024 | E-cycle and e-scooter batteries: managing fire risk for premises | E-cycle and e-scooter batteries: managing fire risk for premises - GOV.UK (www.gov.uk)

2 & 4: British Safety Council, June 2024 | Lithium-ion batteries: a growing fire risk | Lithium-ion batteries: a growing fire risk | British Safety Council (britsafe.org)

3: IFSEC Global, March 2024 | E-book: Lithium-Ion batteries. A guide to the fire risk that isn’t going away but can be managed | Lithium-Ion batteries. A guide to the fire risk that isn’t going away but can be managed (ifsecglobal.com)