They power many of the essentials, from cars and phones to power tools and toothbrushes.
Lithium batteries are all around – but they can be dangerous.
What are lithium batteries?
Lithium batteries are small rechargeable batteries with a high energy density. While they're usually safe, the growing usage of these batteries has also seen the number of lithium fires increase.
More than 65 battery blazes were recorded last year in New Zealand – nearly double the number from 2022. More than 40 people were killed worldwide in lithium battery fires last year.
The explosion of the batteries is rare, but if they occur, they are devastating and can cause thousands of dollars in damage.
So why are lithium batteries dangerous, and what should you do to protect yourself and your business?
Why are lithium batteries dangerous?
The chemicals within the batteries are highly volatile and flammable.
This creates a serious risk of fire or explosion, particularly when exposed to high temperatures. They are extremely volatile and can spontaneously ignite and then explode when they overheat.
If they are damaged or improperly used, charged, or stored, the likelihood of them overheating, catching on fire, and even leading to explosions increases. If the casing is damaged or overheated from improper charging, the gasses vaporise, and the case expands.
When it reaches a critical point, it ruptures, releasing flammable fumes that can ignite violently.
Lithium battery fires are extremely hard to put out. Water-based fire extinguishers will cool down the battery to help prevent the spread of the fire but will not extinguish the fire on the battery until its energy is dissipated.
So, why do we use them?
“The explosion of the batteries is rare, but if they occur, they are devastating and can cause thousands of dollars in damage”
Well, they’re often a cheap, cleaner power solution that requires little maintenance (reducing labour), ultimately leading to increased productivity and cost savings. Lithium power provides longer run times with no decline in performance.
So, business owners need to educate themselves about the risks and take steps to safeguard their employees and premises by reducing the chance of fires catching.
Handling lithium batteries correctly
1) Storage
Store your batteries in a cool, dry place, away from moisture or flammable materials.
2) Buy new
It is not advisable to purchase lithium batteries second-hand or online from unknown and potentially unregulated vendors.
3) Be cautious charging
Too many chargers using one power point at the same time may overload the circuits. Once charging is complete, unplug the battery and give it time to cool down before use.
4) Keep an eye out
If they overheat or show signs of failure, such as swelling or leaking, lithium batteries and chargers need to be disposed of safely.
How to dispose of lithium batteries
Lithium batteries are more likely to catch fire when they're exposed to heat or moisture or if they are crushed, so for that reason, they should be kept out of the regular office bins. You can take them to a hazardous waste collection point or a battery recycling service.
It's recommended you tape over the terminal before placing your lithium batteries in the collection bin.
Do you have the right cover?
Having the right insurance in place can protect your small business from a range of accidents and incidents.
A broker can help you stay on top of emerging risks, such as those posed by lithium batteries, and make smarter decisions about the types of coverage best suited to your circumstances.
For a discussion about your requirements, contact your broker today.
Important notice
This article provides information rather than financial advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, and seek appropriate financial advice before you act on any information.
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This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
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