Lithium-ion Batteries – New risk management guidance

As the world is transitioning from the use of fossil fuels to renewable forms of energy, there's an accelerated dependence on the use of Lithium-ion batteries.

The drive to lower our emissions means the use of these batteries is increasingly widespread in commercial premises, from small-scale devices such as mobile phones and portable tools to employee’s electric vehicles (EVs) and E-Scooters. Whilst the increased use of these devices is a positive step towards a more sustainable future, your clients need to be aware of the associated fire risks that come with them. Our data shows a 7% increase in customer claims for fires started by lithium-ion batteries.¹

Why do Lithium-ion batteries have a fire risk that needs to be managed correctly?

Lithium-ion batteries contain a mixture of chemicals that can present an increased risk of fire, typically due to incurred damage, manufacturing faults, user modifications or charging issues. This can lead to thermal runaway and then fire - which can be extremely volatile and difficult to extinguish. The more we're reliant on these technologies, the more likely it is that fires will occur. According to the London Fire Brigade there was a fire from a Lithium battery purely from E-bikes or E-Scooters every two days in 2023 in London.²

What could this mean for your client’s business?

Lithium-ion batteries are used in a wide range of commercial contexts, for example, the use of portable tools on construction sites, or battery-powered vehicles such as forklifts in warehouses. In addition, many businesses that operate using fleets are also transitioning to electric vehicles, which opens up a new landscape of risks that business owners need to be aware of and build into their risk management strategies.

What can we do to prevent these fires from occurring?

There are several precautions that your clients can take to reduce the risk of damage occurring in the first place. Some general points to consider:

• Charge outside wherever possible and away from buildings or valuable assets.
• If charging indoors, only do so when the premises are occupied and charging can be supervised. It's a good idea to use a proprietary charging cabinet or a dedicated and sterile room to help limit fire spread through the premises in the event of batteries igniting.
• Make sure combustible goods are stored well away from charging locations.
• Regular inspections of batteries to make sure there are no unusual odours, swelling, or heat generation.
• Replace batteries regularly and before their recommended end of life.
• Write an emergency plan and make sure workers are trained on your emergency procedures.
   

^{1. Aviva internal data for fire claims with the word battery, batteries, charging, recharge, rechargeable, charged, and charged. Compares data from Jan 2022-Dec 2022 with Jan 2023 – Dec 2023.}

^{2. https://www.london-fire.gov.uk/safety/lithium-batteries/}