Lithium-ion batteries: a new risk challenge
Lithium-ion batteries have been a focal point in news coverage for some time. Just last month, a blaze at a recycling centre in Essex was attributed to the improper disposal of lithium-ion batteries.
In January Allianz issued a warning to motor traders, emphasising the importance of implementing risk management strategies. These strategies are crucial due to the potential damage a fire could cause and the associated health and safety risks.
What is the risk posed by lithium-ion batteries?
If a lithium-ion (Li-ion) battery is damaged, degraded or short-circuits, it can trigger a phenomenon known as ‘thermal runaway’. This reaction in the battery’s cells can cause it to ignite spontaneously, burning at ferocious heat and giving off dangerous gases.
"The severity and financial impact of lithium-ion battery fires are considerable,” commented Olivia Baker, head of motor trade at Allianz UK. “The risk to life is of primary concern. Second to that, due to the chemical reactions and toxic material that are left behind, these fires can render buildings beyond economical repair.”
It is important to note that EVs are not at greater risk of fire than traditional combustion engines. But the ferocity of a fire if it does break out, combined with the chemical impact, makes them especially dangerous. Larger batteries can even re-ignite after being cooled.
A Freedom of Information request by QBE in 2024 revealed a 46% jump in the number of lithium-ion battery related fires in 2023 compared to 2022, with UK fire services responding to around three fires a day linked to the batteries.
Where are lithium-ion batteries used?
EVs are the most well-known use for Li-ion batteries, but they are also common in e-bikes, scooters, mobility vehicles, as well as power tools, mobile phones, smartwatches, and cameras.
What does risk management of lithium-ion batteries look like for businesses?
It’s important to stress that it's not only motor traders who should be thinking about the risks of Li-ion batteries. Any business dealing in or using equipment that contain the batteries should have appropriate measures in place.
The British Safety Council have issued guidance on storing Li-ion batteries in the workplace. Their focus is more on the growing numbers of e-bikes and scooters in the workplace, but it’s worth noting that Li-ion batteries are fairly commonly used in phones, power tools and laptops, too.
It is these devices that appear to be causing the big increase in reported lithium -ion battery fires. London Fire Service reports that it is called out to an e-scooter or similar battery fire almost every other day.
The cause of many of these fires appears to be the use of cheap replacement chargers and after market batteries, often bought online. These do not reach the quality of the originals and may not incorporate features to prevent overcharging.
What are the current guidelines and rules?
Companies dealing in products containing, or the manufacture, storage and transport of, Li-ion batteries are of course subject to extant health and safety regulations and statutory guidelines, but the rules in this area are evolving.
The RISC Authority has published guidance, RC59: Recommendations for fire safety when charging electric vehicles and a Need to Know Guide RE2 Lithium-ion Battery Use and Storage.
The Lithium-ion Battery Safety Bill, initiated in the House of Lords, would require companies planning to build battery storage solutions to consult the Environment Agency, HSE and their local fire and rescue service before planning permission could be granted.
The Bill has been sitting at Committee Stage since July 2024, and it will presumably be some time before it comes into force if passed.
How should brokers tackle the topic with their clients?
If your clients deal with Li-ion batteries, it’s important they understand the risks and mitigate them as best as possible.
Gavin Scarr Hall, Health and Safety Director at Peninsula Business Services, says “To minimise the fire hazards and risk to personal safety from the use of lithium-ion batteries, the vehicles, devices and equipment powered by these batteries should always be purchased from reputable manufacturers and suppliers. They should be used strictly in accordance with their instructions. When spares or replacement parts are needed, always use the original makers spares, don't be tempted to buy cheaper alternatives. Charging stations must not be on or compromise fire escape routes. Ideally charging stations will be fitted with automatic fire detection so that personnel can be alerted and move to safety at the earliest opportunity.”
Loss prevention guidelines exist – see this March 2025 article from The Engineer, and a report on a sensor that can support with early detection of gas leaks.
Lithium-ion batteries are here to stay. They have inherent hazards, but the risks can be controlled by using, charging and maintaining them in accordance with the manufacturer’s instructions. Following guidance published by the RISC Authority, Fire Services and other recognised organisations will further reduce the risks.
Sources
Allianz UK
QBE
Peninsula
The British Safety Council
Gov.uk
London Fire Service
This article has been written with source material from partner markets and providers as well as publicly available information. The content reflects the views and expertise of the respective contributors and is intended to offer insights on current industry topics. Please note that this article does not necessarily represent the views of Hedron Network or its affiliates.