April 3, 2024 by Philip Porado
Introduction of lithium-ion batteries has introduced new hazards into the everyday lives of Canadians due to their ability to catch fire spontaneously – a phenomenon known as ‘thermal runaway.’
What began as concerns about fires started by cell phone and laptop batteries has recently been amplified by a rise in the number of e-scooter users who, faced with high gasoline prices, are seeking alternate transportation options.
Many scooter owners store those vehicles, which contain lithium-ion batteries, inside their homes. And that has at times met with catastrophic results.
But, while fire losses in people’s homes are devastating, a recent article by Adrian Simmonds, practice leader of property risk solutions at QBE, notes a different aspect of lithium-ion battery risk is being ignored – proper disposal at reprocessing and storage facilities.
“There are a significant number of guidance articles, webinars and presentations centred around the safe handling and charging of devices such as e-scooters and e-bikes, and a few even talk about the health hazards of the toxic gases and chemicals lithium-ion batteries can release,” he writes.
“But very few also consider the issue of returns.”
Used lithium-ion batteries, he notes, are at higher risk of catching fire than new units. Simple aspects of daily use exposes lithium-ion batteries to shaking, impact shock and the possibility of “being being connected to poor-quality or faulty chargers, which can trigger internal faults that lead to thermal runaway,” Simmonds notes.
In light of this industrial-scale risk, QBE suggests a series of mitigation precautions should be of interest to commercial insurers and brokers. They’re aimed at reducing risk during transportation and storage of used lithium-ion power cells, “including [at] rental companies, retail stores, repair workshops, and original equipment manufacturers.”
Simmonds notes all returns should be:
Feature image by iStock.com/SergeyNivens