Lithium-ion Batteries: are businesses managing the risks?

Following on from the recent guidance we shared around lithium-ion batteries and the related risks your clients need to be aware of, we conducted research to delve into the topic further. Here’s what we found out.

We surveyed over 500 decision makers from businesses that use lithium-ion batteries, with the results revealing that 95%¹ of businesses consider lithium-ion batteries to be important for their daily operations, with one-third (33%) of respondents deeming them essential or critical. However, in many instances, businesses aren’t following basic guidance to handle, store, charge and dispose of lithium-ion batteries, with 45% not doing regular inspections for damage, 45% of respondents not using genuine compatible chargers and 46% admitting to allowing overcharging.²

Lithium-ion batteries are commonly found in rechargeable devices like mobile phones, tablets, laptops, power tools, e-bikes, and e-scooters. They're used in a wide range of commercial contexts, for example, the use of portable tools on construction sites, battery-powered vehicles such as forklifts in warehouses, and fleets transitioning to electric vehicles.

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 an increase in temperature, known as thermal runaway, and then fire – which can be extremely volatile and difficult to extinguish.

Despite the importance of these devices to keep businesses running, more than 1 in 10 (12%) of the organisations surveyed reported having no specific measures in place to handle and store lithium-ion batteries safely. Just over half have implemented measures, including regular inspections for damage (55%), proper storage in cool, dry places (53%) and employee training on safe handling (51%). Just over a third (35%) of respondents have emergency response plans in place.

Many of the hazards associated with lithium-ion batteries occur while charging. Around half of respondents use genuine compatible chargers (55%) and avoid overcharging (54%). Meanwhile, 46% regularly maintain charging equipment and 42% ensure well-ventilated charging areas. 38% charge on non-flammable surfaces.

Because of their potential for starting a fire, lithium-ion batteries should not be disposed of in ordinary waste bins or recycled with other types of batteries. When disposing of used or damaged lithium-ion batteries, 52% of respondents follow manufacturer guidelines, 44% use certified recycling facilities and 35% use internal disposal protocols. This suggests that many businesses are putting themselves at risk.

Training is an important part of ensuring safe practices, but just 35% of respondents reported regular training on the safe use and handling of lithium-ion batteries, with a further 35% providing occasional training. A worrying 15% don’t offer any training and of these, 10% have no plans to train staff in the future.

Chris Andrews, Director of Aviva Risk Management Solutions (ARMS), said: “Lithium-ion batteries are considered to be a more environmentally friendly option than conventional ones and it’s great to see that businesses clearly recognise the important role they play in day-to-day operations. However, this new technology doesn’t come without risks. As businesses continue to rely heavily on lithium-ion batteries, ensuring proper handling, storage, charging and disposal practices will be essential to maintaining safety and operational efficiency.”
 

There are several precautions that your clients can take to reduce the risk of damage occurring in the first place. We’d encourage them to consider:

• Charging 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.
• Ensuring 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.
• Replacing batteries regularly and before their recommended end of life.
• Writing an emergency plan and making sure workers are trained on emergency procedures.
• Training staff regularly on how to work with lithium-ion batteries safely.

_{1 The research was conducted by Censuswide, among a sample of 501 decision makers, working at companies that use lithium-ion batteries, aged 18+. The data was collected between 27.09.2024 and 01.10.2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.}

_{2 Data is from respondents who did not select that they did regular inspections for damage, use genuine compatible chargers and avoid overcharging.}