Managing electric battery risk on your premises

Fires caused by lithium-ion batteries surged by 93% between 2022 and 2024, according to research from insurer QBE with UK fire brigades now responding to more than three lithium-ion battery fires every day.

Understanding the risk

Lithium-ion batteries offer high energy density but are inherently volatile. Under conditions such as overcharging, exposure to heat, or physical damage, they can enter a self-sustaining process known as thermal runaway, resulting in fire or explosion. While some batteries include built-in safety mechanisms, these are not foolproof; even well-designed units can fail if stored or handled improperly.

The risk is not confined to any one sector. It spans the entire battery lifecycle, from manufacturing and prototype testing, through transport and storage, to end-of-life disposal.

Where risks arise on premises

1. Personal transport and employee behaviour – Many workplaces now see staff arriving with e-bikes and scooters. If charging occurs indoors, sometimes even under desks, the potential for fire is significant. These devices are often fitted with aftermarket or uncertified batteries, which may lack robust safety features.

2. Operational equipment – Handheld tools, portable power packs, drones, and automated machinery often rely on lithium-ion technology. Heavy daily usage, rough handling, and rapid charging cycles increase the likelihood of battery degradation and failure.

3. Onsite manufacturing or storage – Facilities that assemble, test, or store battery-powered products hold higher volumes of cells. Bulk storage without appropriate environmental controls or fire-rated segregation dramatically raises the stakes if a single unit fails.

4. Electric vehicles – EV adoption introduces new risks in car parks, depots, and loading areas. Vehicles may be left charging overnight or stored in close proximity to one another, creating a scenario where one thermal runaway event could escalate rapidly. Damaged or removed EV batteries are especially hazardous and can reignite days after an incident.

Best practice for battery safety

While regulations are tightening, compliance alone is not enough. A proactive approach based on best practice is essential. Key measures include:

1. Safe Storage – Store batteries in cool, dry conditions, ideally between 5–27°C, away from direct sunlight, moisture, and sources of heat. Use fire-rated cabinets or enclosures to isolate batteries from other materials and prevent fire spread. Basic fire-resistant options are insufficient  – units should be fire-rated which means they have been tested and certified for sustained fire exposure.

2. Handling & Charging – Provide designated charging areas for e-bikes, scooters, and portable equipment. Prohibit “ad hoc” charging at desks or in storage rooms. Use thermal cameras or sensors to detect overheating. Early intervention is critical in preventing escalation. Remove and isolate damaged batteries immediately and have a plan for their safe removal from site.

3. Fire Protection & Response – Install sprinklers or have lithium-ion appropriate suppression media—such as water mist, dry powder, or CO₂—readily available. Flooding with water remains the most effective method for controlling lithium-ion fires. Rapid-response tools such as fire blankets or containment units can also help prevent escalation. Staff training in evacuation procedures and fire safety is essential.

4. Risk Assessment & Culture – Conduct routine condition checks for swelling, corrosion, or other signs of battery degradation. Update fire risk assessments to explicitly include lithium-ion risks. Build a resilient safety culture that assumes failures will occur and ensures systems are in place to contain them.

The regulatory context

The UK has taken notable steps to address the risks. In December 2024, the Office for Product Safety and Standards (OPSS) issued new rules requiring e-bike batteries to include mechanisms preventing thermal runaway. The Product Regulation and Metrology Act (July 2025) went further, designating lithium-ion batteries as a “priority product” which should lead to stringent standards for performance, labelling, and online sales.

These are important milestones, but they largely focus on consumer markets. In the workplace, organisations must go beyond compliance, adopting storage, monitoring, and emergency planning practices that account for the unique risks posed by their operations.

Insurance industry guidance

Insurers have begun issuing detailed guidance on lithium-ion risks. Providers such as Aviva and Lockton now expect businesses to integrate battery hazards into formal fire risk assessments and establish designated storage and charging areas. Regular inspection, use of genuine chargers, and prompt isolation of damaged batteries are consistently highlighted as minimum expectations.

From a legal perspective, under the duty of fair presentation in the Insurance Act 2015, it is likely that insurers would regard battery-related hazards as material circumstances requiring disclosure. A failure to demonstrate adequate management of such risks could have implications for cover in the event of a fire. For many organisations, following industry guidance not only mitigates the underlying hazard but also supports compliance with disclosure obligations and strengthens their position in relation to liability and claims.

Electric vehicles on site

EV risks deserve particular attention. Whether in staff car parks, delivery bays, or fleet depots, the combination of high energy density, close proximity, and extended charging periods makes EV battery management a complex challenge. Best practice calls for outdoor charging where possible, fire-rated storage for removed or damaged packs, gas detection and thermal monitoring in charging areas, and clear emergency response planning to deal with delayed ignition scenarios.

Conclusion

The shift to electrification is irreversible and essential to the UK’s decarbonisation goals. But with innovation comes responsibility. Lithium-ion batteries are not just another fire risk; they are a complex, evolving hazard that demands specialist knowledge and robust safety culture.

From personal scooters to fleet vehicles, from tool batteries to industrial storage systems, organisations must take a joined-up approach combining safe storage, clear employee policies, active monitoring, and well-drilled emergency response.

The message is clear: innovation and safety must go hand in hand. Organisations that act early and adopt best practice by drawing on guidance from regulators, safety bodies, and the insurance sector, will be well placed to protect people, safeguard assets, and ensure business continuity in an environment where expectations are rising rapidly.