Key points

• Lithium-ion batteries are commonly used in solar panel batteries, electric vehicles, smart phones and other devices we use every day. But they do come with risks.
• Understanding these risks is key to mitigating the serious damage and injury that can be caused by unsafe battery handling.
• This article explores the dangers of lithium-ion batteries, as well as tips for minimising the risk of fire in your home or workplace.

What are lithium-ion batteries?

Lithium-ion batteries are rechargeable energy storage devices that have revolutionised modern technology in Australia, and around the world. These batteries power the technologies we use every day, including:

• Electric vehicles
• Solar panel systems
• Smart phones
• Tablets
• Laptops
• Vapes
• Wearable devices
• Medical tech
• Power tools.

Not only are lithium-ion batteries more durable than other kinds of batteries, they’re also incredibly light weight and have a high energy density, which means they can store a large amount of energy relative to their size.

Despite these advantages, there are risks associated with the use of lithium-ion batteries. Here’s what you need to know.

The risks of lithium-ion batteries

A recent spike in safety incidents concerning lithium-ion batteries has put this technology in the spotlight. These incidents have included fires and explosions, caused by a phenomenon known as ‘thermal runaway’.

Thermal runaway occurs when battery temperatures increase quickly and uncontrollably, resulting in battery fires that are difficult to extinguish. Often, these types of fires will appear to be extinguished, then reignite later, which poses major property and safety risks.

What causes lithium-ion battery fires?

Overheating, physical damage, high temperatures and improper charging are just some of the factors that can lead to lithium-ion battery fires. Failure of the battery management system, which is responsible for regulating battery function, can also increase the risk of fire incidents.

Electric vehicles

According to the Electric Vehicle Council, new electric vehicle purchases more than doubled in the year 2023 from 2022. The total number of electric vehicles in Australia now exceeds 180,000, with the number nearly doubling every year since 2020.

However, the growing popularity of electric vehicles in Australia brings significant risk. In 2023 an electric vehicle parked at Sydney Airport burst into flames spontaneously and destroyed four other cars close by.

Given the newness of the technology, it’s unclear how common these incidents will be. The cost of replacing damaged electric vehicle batteries is high, which means electric vehicles may be written off with minimal battery damage, instead of being repaired.

As electric vehicles become more and more common, we will inevitably see more cases such as the one at Sydney Airport. Although this particular incident was not related to charging, it’s important to mitigate potential risk by ensuring safe charging practices are followed at all times.

Solar batteries

Many solar panels use lithium-ion batteries as their power source in Australia. Just this year, the Australian Competition and Consumer Commission (ACCC) issued a recall of an LG solar storage battery linked to 13 cases of property damage, including a fire that destroyed a home in Victoria.

The property damage was caused by the LG solar battery spontaneously overheating and catching fire. ACCC Deputy Chair Catriona Lowe said around 5,000 LG solar storage batteries still needed to be located. Lowe urged home owners to check if their system was part of the national recall. If so, Lowe said to switch the system off and contact LG immediately.

Head here to see which models are affected.

What to do in the case of a lithium-ion battery fire?

Do not touch devices or batteries that are ruptured or swollen with bare hands. This is because the heat and chemicals can result in severe burns. The following information on what to do if a lithium -ion battery catches fire has been summarised from the Department of Fire and Emergency Services website.

If a large device or battery is smoking or catches fire:

• Evacuate the area immediately.
• If it is safe to do so, close doors to stop the fire spreading.
• Make sure no one re-enters the building, as the gases, vapour and smoke emitted by burning batteries is highly toxic when inhaled.
• Call Triple Zero (000) and wait in a safe place for firefighters to arrive.
• Seek medical assistance for anyone who has been harmed.
• Treat burns with cool running water for a minimum of 20 minutes.
• Burns that are larger than a 20-cent coin need emergency medical attention. If this is needed, call Triple Zero (000) and follow the operator’s advice.

For small devices or batteries:

• Do not inhale fumes or smoke as this is highly toxic.
• Remove the device from charge, if safe to do so.
• Take the device outside and away from flammable material, if safe to do so.
• Extinguish the fire by:
  • Dousing the device with water or dropping it into a clean bucket of water.
  • Using a fire blanket or extinguisher from a safe distance if you have the training to do so.

Please head to the DFES website for more detailed information on what to do in the case of a lithium-ion battery fire.

Reducing risks

Safe handling practices are vital to reducing the risks of lithium-ion batteries. We recommend:

• Using lithium-ion batteries manufactured for use within Australia.
• Only sourcing lithium-ion batteries from reputable manufacturers.
• Regularly inspecting batteries for damage.
• Storing batteries away from heat and moisture.
• Following the recommended charging procedures.
• Avoiding damaged chargers.
• Never modifying or repurposing products that contain lithium-ion batteries.
• Properly disposing of lithium-ion batteries.

Safe charging practices

Earlier this year the ACCC called for stronger protection laws in response to a significant increase in fires sparked by lithium-ion batteries. Many of these incidents occurred during charging, which is why safe charging practices are essential. When charging a lithium-ion battery always:

• Follow manufacturer instructions.
• Disconnect fully charged batteries to prevent overcharging.
• Only use approved chargers designed for the product.
• Avoid charging devices on beds, couches or other flammable surfaces.
• Avoid charging batteries indoors if instructions indicate it is not safe to do so.
• Avoid leaving devices with lithium-ion batteries in hot cars.

Storage and disposal tips

Incorrect storage and disposal of lithium-ion batteries is a key fire risk factor. This is what it’s important to store batteries in dry, well-ventilated areas, away from direct sunlight and other flammable materials.

In 2023, industry experts said recycling plants in Queensland were experiencing at least five fires a day as a result of illegal vape dumping. That’s around 35 fires a day caused by lithium-ion batteries within the vape mechanism.

In order to prevent this from continuing, it’s essential that old or damaged lithium-ion batteries are disposed of at designated recycling points or at local chemical cleanout events.

Am I covered in the case of a lithium-ion battery fire?

The influx of lithium-ion battery related fires has resulted in an increase in insurance claims. If you own an electric vehicle or are concerned about the implications of a lithium-ion battery fire, it’s important to review your existing insurance policy.

We recommend checking to see if you have sufficient coverage for potential damage caused by lithium-ion battery incidents. And be sure to follow safe handling practices when charging and using lithium-ion battery powered devices or vehicles to ensure you’re in compliance with your policy.

Need your policy reviewed?

We can assist you by reviewing your existing policy to check you’re effectively covered in the event of a lithium-ion battery incident. If you’re looking to secure cover for your solar panel system, electric vehicle, or any other lithium-ion charged technology, we can match you with a policy that fits your needs and your budget just right.

Get started now.