November 6, 2023 by Jenny Yung, QBE Underwriting Manager, Commercial Package
As a leading business insurer, QBE Canada is aware of the risks that lithium-ion batteries can pose in commercial and industrial environments
Rechargeable lithium-ion (li-ion) batteries were first introduced in 1991. Today, they’re everywhere.
Think about how many rechargeable devices are in your home and workplace – from the fitness tracker on your wrist, cell phone and computer, to e-bikes and electric vehicles. With growing focus on sustainability influencing many – if not all – businesses, new applications for li-ion batteries are being embraced, including for use in energy storage, power tools, forklifts, and electric vehicles.
In normal use, li-ion batteries are stable, and work as intended. However, these batteries are particularly sensitive to high temperatures and are inherently flammable, as well as being sensitive to cold temperatures and over-charging.
In certain circumstances – if the battery has been damaged by dropping, piercing or even heavy jolting, for example – a fault can cause a short circuit and severe overheating leading to ‘thermal runaway’: an irreversible pathway to fire.
Li-ion batteries can be difficult to deal with because they release a flammable and toxic vapour which helps to further fuel the fire. Fire extinguishers are available that release a water-based solution of a material called vermiculate. This seals around the damaged battery to limit further fire spread but it does not halt the thermal runaway. The thermal runaway process will continue under the vermiculate and is waiting to accelerate again given the chance. This can reignite the fire even after hours or days or weeks of it seeming to be contained.
Any by-standers should evacuate and stay at least 10 metres away from the fire as the explosive force of a fire and thermal runaway release can throw hot metal and burning chemicals many metres. No one should attempt to extinguish the fire unless they’re trained and are using Lith-Ex extinguishers.
Ten strategies to mitigate risk
Mitigating li-ion fire risk can be addressed as part of emergency response plans for businesses. In addition to any contingency plans, general risk control recommendations around li-ion battery use and storage could include:
[1] https://safetyskills.com/lithium-batteries/#:~:text=Batteries%20should%20be%20stored%20in,knocked%20over%20or%20otherwise%20damaged
[2] https://www.lexology.com/library/detail.aspx?g=62a673c0-82dd-46fe-bd21-21bb6484d3e7#:~:text=Avoid%20extreme%20heat%20and%20freezing,condensation%2C%20excessive%20humidity%20or%20water
[3] https://www.lexology.com/library/detail.aspx?g=62a673c0-82dd-46fe-bd21-21bb6484d3e7#:~:text=Avoid%20extreme%20heat%20and%20freezing,condensation%2C%20excessive%20humidity%20or%20water