Fire Protection Strategies for Lithium-Ion Batteries

We often talk about the dangers of lithium-ion battery fires, and unfortunately, it is still very much a major problem in the UK and beyond. So much so that a new data sheet outlining fire protection strategies for their storage has been released by FM Global, a major commercial property insurance firm. 

Before we dive into the data sheet, it’s worth recapping why lithium-ion battery fires are sadly so prevalent. Essentially, these types of batteries store a lot of energy in a compact space, so they’re extra sensitive to damage, overheating, or faults. If the battery is punctured, overcharged, or exposed to extreme heat, it can trigger a process called thermal runaway. 

This is where the temperature inside the battery rises quickly, causing the battery to catch fire or even explode. Because the chemicals inside a lithium battery are flammable, these types of fires spread rapidly and can be incredibly difficult to extinguish. 

Despite their dangers, lithium-ion batteries are very efficient and, for that reason, are widely used in e-bikes, laptops, and energy storage systems, to name but a few. For businesses or individuals who keep lithium batteries on-site, it’s important to understand the risks they pose and to have proper measures in place. These measures include fire prevention systems, i.e., heat detectors or sprinkler systems; safe storage practices, and, of course, robust insurance coverage. 

Loss Prevention Data Sheet 7-112

The Lithium-Ion Battery Manufacturing and Storage Property Loss Prevention Data Sheet 7-112 is a useful resource, detailing various fire risk mitigation strategies, specifically referring to the manufacture and storage of lithium-ion batteries. It explains the best ways to prevent thermal runaway, minimise fire spread, and ensure that if battery cells do become damaged, they are handled safely. 

It’s most relevant to businesses or individuals involved in the production, storage, or transport of lithium-ion batteries, such as: 

• Manufacturers producing lithium-ion cells, modules or battery packs, or those integrating batteries into devices, electric vehicles, or energy storage systems. 

• Warehousing companies that store lithium-ion batteries in bulk or distribution centres that handle batteries before they’re shipped.  

• Logistics and transport companies transporting batteries or battery-powered products. 

• Energy storage providers responsible for managing Battery Energy Storage Systems (BESS). 

Key Safety Considerations

As we’ve mentioned, the core risk when it comes to lithium-ion batteries isn’t just a regular fire; it’s the irreversible chain reaction known as thermal runaway. If you handle or store Li-ion batteries, you must prove to your insurer that you can prevent this thermal runaway, contain the fire if it does start, and deal with the consequences safely. 

The greatest risks come during charging, assembly, and testing, so manufacturers should ensure batteries are charged inside ventilated hoods or enclosures to stop heat from spreading in case failure occurs.

It’s also important to use off-gas detectors inside these enclosures, which can send out an alert should something go awry. Employees can then act upon this alert to minimise the risk of flammable gas building up and causing an explosion. 

The document also includes guidance surrounding the importance of sprinklers and solid barriers (metal or plywood) built into storage racks to limit the spread of damage. It is advised that any sprinkler system installed must run for a minimum of two hours, as lithium-ion fires are known to burn for long periods of time. 

Other tips include keeping the state of charge (SOC) at less than 60% for general storage and maintaining a minimum of 10 feet of clear space between any battery storage and other combustible materials. Similarly, if a unit is damaged, returned, or proves defective, this should be immediately isolated and stored at least 20 feet away from other items.

It’s also worth being mindful of packaging, as materials like expanded plastic (foam) can accelerate fire spread compared to alternatives like cardboard or moulded pulp. 

Managing the Risk

Any insurance partner will want to see that you are capable of managing the entire lifecycle of risk. So with this in mind, we recommend that you do the following: 

• Document everything and ensure you have procedures for handling damaged cells and responding to thermal runaway. 

• Prioritise contingency planning, including contacting the local fire department, and addressing the potential for reignition even after the fire appears to be out. 

• Ensure you have a thorough fire risk assessment in place, specifically for Li-ion batteries, with a focus on handling, storage, use and charging. 

So many organisations are far too behind on updating their processes and documentation surrounding this topic, despite the significant rise in lithium-ion fires in recent years. If lithium batteries play a key role in your business, and you manufacture, store or transport them regularly, particularly in bulk, it’s crucial that you do everything you can to protect your business, employees, customers, inventory, assets, and reputation. 

Lithium-Ion Battery Fire Facts & Figures

Without intending to fear-monger, we’ve compiled the following facts and figures to illustrate that this is not an issue that should be taken lightly. 

• BESS Fire, Thurrock, Essex (February 2025).  A fire broke out at a BESS project that was under construction. The fire lasted three days and took over two hundred firefighters to put out. 

• Rise in Lithium-Ion Fires (2022-2024). Data taken from the Freedom of Information requests to fire services (March 2025) shows a 93% increase in lithium-ion fires between 2022 and 2024. Specifically, electric vehicle fires rose from 141 in 2022 to 232 in 2024. 

• Economic Impact of Lithium-Ion Battery Fires. According to the National Fire Chiefs Council (NFCC), lithium-ion batteries are responsible for around 48% of all waste fires in the UK each year, costing the UK economy around £158 million per year. 

• Failure to Update Fire Risk Assessments. A survey conducted between September 2024 and February 2024 found that 71% of respondents had not updated their fire risk assessment to cover the risk of lithium-ion battery fires, with just 15% having done so and a further 14% unsure.

We’re Here to Help! 

At L Wood Insurance Brokers, our experienced team are on hand to help you better understand the risks associated with lithium-ion fires. Whether you need guidance on fire prevention measures, risk assessments, or insurance coverage itself, we’re here to support you every step of the way. 

Contact us today to discuss your insurance needs and protect your business today, tomorrow, and into the future.