The Insurance Corner – The Growing Danger of Lithium-Ion Battery Fires
Feb 26, 2025 11:35AM ● By Gus Krantz, CFP®, CTFA, AFIS, Agency Principal with Turner Hicks Agency
Lithium-ion batteries power many of the devices we use every day, but they also pose significant fire risks if mishandled.
Fires caused by these batteries in cell phones, laptops, electric vehicles, and more are on the rise, and the number of house fires they start is also growing. Lithium-ion batteries are usually found in devices and are rechargeable, unlike AA or AAA batteries.
Although the frequency of these fires is low, their incidence is increasing. Even a minor fire can lead to considerable damage or complete destruction of a home. If your EV catches fire in your garage, it could quickly spread.
The Risks Associated With Lithium-ion Battery Fires
Lithium-ion battery fires are particularly hazardous because they occur suddenly and spread rapidly. Unlike traditional fires, they produce intense heat and can explode due to a chain reaction called “thermal runaway.”
The causes of these fires are many, including:
- Overheating,
- Physical damage, and
- Manufacturing defects.
The Consumer Product Safety Commission reported 208 incidents involving lithium batteries in mobility devices from January 2021 to November 2022, leading to nineteen fatalities (the most recent statistics available). As these batteries become more prevalent, experts predict incidents will continue to rise.
One tragic example occurred on June 20, 2023, when a fire sparked by a lithium-ion battery at the HQ E-Bike Repair shop in Chinatown, New York, killed four people and injured two others. The year prior, the New York City Fire Department responded to over 200 e-scooter and e-bike fires, resulting in six fatalities.
Everyday Items Containing Lithium-ion Batteries
Lithium-ion batteries are in more products than you might think, including:
- Electric vehicles
- Smartphones and laptops
- Power banks (portable chargers)
- E-bikes, scooters, and hoverboards
- Power tools
- Wireless headphones
- Smart luggage with built-in charging ports
Safety Concerns and Storage
When improperly stored, charged, or disposed of, lithium-ion batteries can ignite. Fires have been linked to overcharging, using incompatible chargers, and storing batteries in hot environments, like cars exposed to direct sunlight.
Tips to Prevent Battery Fires
- Stop using a device with a lithium-ion battery if you notice an odor, changes in battery color, excessive heat, changes in shape, leaking, or odd noises.
- Use only manufacturer-approved chargers for your devices or external battery packs.
- Avoid charging batteries overnight or unattended.
- Do not overload outlets or use power strips for charging.
- Store batteries in cool, dry places away from direct sunlight or flammable materials.
- Never throw lithium-ion batteries in the trash. Recycle them properly by checking your local battery recycling options.
- Place tape over battery terminals before disposal to prevent accidental discharge.
- Keep loose lithium-ion batteries in your carry-on luggage when flying. Do not put them in the luggage you check in.
The Takeaway
Lithium-ion batteries are a modern convenience, but they do come with some risks. By understanding the dangers, following safety guidelines, and properly disposing of these batteries, you can significantly reduce the chances of a fire in your home or vehicle.