Lithium-Ion (Li-Ion) batteries power a wide range of devices and systems, from smartphones and laptops to electric vehicles and renewable energy solutions.
While their high energy density and efficiency have made them a cornerstone of modern technology, their use also brings increased fire risks which are increasingly linked to workplace and residential fires.
Common scenarios leading to fires include:
- Overcharging, which can elevate voltage levels dangerously, generating excessive heat and increasing fire risks.
- Impact or piercing can compromise a battery’s structure, causing internal short circuits.
Production defects or damage can lead to short circuits that quickly generate heat and ignite fires. - Exposure to high temperatures or proximity to flammable materials increase risks.
Storing batteries in hot, poorly ventilated spaces, which can trigger a chain reaction leading to catastrophic overheating. - Batteries purchased from unverified suppliers may lack necessary safety standards.
The British Safety Council has raised concerns about the increased association of Li-Ion batteries with severe fires in workplaces and residential buildings. Such incidents highlight the importance of proactive risk management in environments where these batteries are in use, and limited industry regulations make risk management critical. - Data released at the end of last year by insurer Allianz reveals the cost of fire-related claims involving lithium batteries is on average £50,000 – through fires caused by leaking, damaged batteries and overcharged e-vehicles combusting.
Steps to Minimise Fire Risks
1.Maintain Safe Charging Practices
Use approved chargers and adhere to manufacturer guidelines for voltage and current. Avoid overcharging or using damaged chargers.
2. Proper Storage and Handling
Store batteries in cool, dry and ventilated areas, away from heat sources and flammable materials. Regularly inspect batteries for physical damage or signs of wear.
3. Choose Trusted Suppliers
Purchase batteries from reputable manufacturers that meet international safety standards, such as ISO certifications. Verify the quality and compliance of all batteries supplies.
4. Train Your Team
In a workplace, provide colleagues with clear procedures for responding to battery malfunctions or fires. Educate staff on safe handling, storage and emergency procedures.
5. Follow Industry Guidelines
Adopt best practices recommended by safety bodies like the Fire Protection Association (FPA) to ensure compliance and reduce risks.
Insurers are looking closely at risks associated with Li-Ion batteries but the high fire risk of these batteries add complexity to underwriting and claims processes.
By proactively managing these risks, you can avoid costly claims and disruption – and also strengthen your position with insurers by demonstrating robust risk management practices.
View AXA’s fire risk guidance on Lithium-ion rechargeable batteries and the fire risks that can occur here.
If you would like to discuss additional measures to mitigate risks associated with Li-Ion batteries, please get in touch.