Aviva Research Highlights Lithium Battery Fire Risk Across Business Sector

Aviva research suggests that more than half of businesses have experienced an issue linked to lithium-ion batteries, such as sparking, fires and explosions. As the UK govt enacts regulation and applies extra taxes to diesel fleets, or offers tax breaks on meeting `climate change’ targets, the risks posed by lithium battery charging are likely to be borne by private companies – and their insurers. This research is welcome;

In a survey of 501 UK businesses, 54% of respondents had experienced an incident, with 36% reporting they had experienced a lithium-ion battery overheating. One in five businesses (19%) had experienced a device or battery sparking and 17% had experienced smoking. Alarmingly, around one in eight respondents had experienced fires (13%) or explosions (12%) in the workplace.

Lithium-ion batteries are commonly found in rechargeable devices like mobile phones, tablets, laptops, power tools, e-bikes, e-scooters and electric vehicles. These 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 overheating – known as thermal runaway – and fire, which can be extremely volatile and difficult to extinguish. According to the London Fire Brigade there was a fire from a lithium-ion battery purely from e-bikes or e-scooters every two days in 2023 in London.

Research shows that, of those who have experienced an incident, around half of respondents are following this guidance, suggesting that many businesses are not prioritising safety around lithium-ion batteries. The Aviva survey data found that:

• Just over half of businesses who had experienced an incident avoid overcharging (52%), use genuine compatible chargers (51%) or follow manufacturer guidelines when disposing of used or damaged lithium-ion batteries (56%).

• Meanwhile fewer than half of respondents regularly maintain charging equipment (47%), ensure well-ventilated charging areas (46%), partner with or use certified recycling facilities (45%), have internal disposal protocols (44%) or charge on non-flammable surfaces (41%) – despite the fact they’d experienced an issue such as smoking, sparking or an explosion.
• 93% of respondents who had experienced an incident have training in place, which is encouraging. However, only 41% train staff regularly on this issue, and 40% train occasionally.

Aviva recommends a number of precautions when dealing with lithium-ion batteries, to reduce the risks associated:

• Charge safely: Always charge batteries in a safe location, preferably outside or in a dedicated charging area away from combustible materials.
• Supervise charging: Ensure that charging is supervised and only done when the premises are occupied.
• Use proper equipment: Use proprietary charging cabinets or dedicated rooms to limit fire spread in case of an incident.
• Regular inspections: Frequently inspect batteries for any signs of damage, unusual odours, swelling, or heat generation.
• Replace batteries: Replace batteries regularly and before they reach their recommended end of life.
• Emergency preparedness: Develop and train workers on an emergency plan to handle battery-related incidents.
• Store safely: Store batteries in a cool, dry place, away from direct sunlight and heat sources.
• Avoid overcharging: Do not overcharge batteries and follow manufacturer guidelines for charging times and conditions.
• Handle with care: Handle batteries carefully to avoid physical damage, which can lead to thermal runaway.
• Dispose properly: Dispose of batteries according to local regulations and guidelines to prevent environmental hazards.
• Monitor temperature: Keep an eye on the temperature of batteries during use and charging to prevent overheating.
• Educate employees: Ensure that all employees are aware of the risks and proper handling procedures for lithium-ion batteries, with regular training.

Chris Andrews, Director of Aviva Risk Management Solutions (ARMS), said: “Aviva’s research highlights a critical issue facing businesses today: the significant risks associated with lithium-ion batteries. With over half of the surveyed businesses experiencing incidents such as sparking, fires, and explosions, it is clear that precautions need to be taken.

“To mitigate these risks, Aviva recommends several precautions, including safe charging practices, regular inspections, proper storage, and comprehensive employee training. Despite the high incidence of battery-related issues, our survey indicates that many businesses are not fully implementing these safety measures. It is imperative that businesses prioritise the safe handling and disposal of lithium-ion batteries to prevent potentially catastrophic incidents.”

Aviva has published new risk management guidance on lithium-ion batteries, which is available here: Risk Management Guides | Aviva Risk Management Solutions – Aviva Risk Management Solutions