Operational Risk in the Age of Lithium

Lithium has become a valuable energy source for tools, devices and vehicles. When combined with ions, its rechargeability can change how people look at batteries. However, there are challenges associated with deploying lithium batteries in your operations, and it’s critical to proactively address them.

The Risks of Lithium Batteries

Lithium-ion — or Li-ion — batteries can change the tech industry, but their sensitivity to high temperatures can make them dangerous. They comprise volatile electrolytes that may release flammable gases when exposed to heat.

Overcharging these kinds of batteries can cause them to overheat, leading to fires or explosions. Reignition is possible even if the battery fire has already been put out.

Unfortunately, there’s a lack of official standards for how businesses should mitigate these risks. Codes like the International Fire and Building Codes cycle only once every three years, which means regulations like the NFPA 1: Fire Code and NFPA 5000: Building Construction and Safety Code fail to regulate emerging technologies.

The Consequences of Lithium Battery Failures

Lithium-based battery storage can positively affect businesses since it offers high energy density and long lifespans in a compact unit. However, potential failures can also cause issues.

Property Damage

Fires and explosions from a lithium-based battery can render these resources unusable and negate their potential return on investment. Such incidents can also destroy property. While the scale is dependent on the severity and number of failures, renovations or construction create extra expenses.

Danger for People

Failures can also create dangerous conditions for staff and bystanders. For example, in 2023, a Li-ion battery fire hospitalized four employees and injured up to seven people. While they were not directly exposed to the fire, all patients were treated for smoke inhalation. Proactive lithium management can protect people’s health and lives.

Business Interruption

Attending to failures can take time and energy, which could have been better spent on other business operations. Depending on the scale of these risks and where they happen, companies may even have to evaluate shutting down or scaling back for a while.

Reputational Harm

Due to their electronic power, lithium batteries can add to a company’s eco-conscious image, but failures can have the opposite effect on a brand’s reputation. Having a Li-ion fire or explosion incident attached to your company name negatively impacts your industry reputation and track record. It may raise questions about your quality assurance processes and trustworthiness, creating a negative public perception.

How to Mitigate the Risks

If you want to use lithium, you must mitigate the risks associated with it. Thankfully, businesses have already developed practices like better storage and minimal charging.

Practice Safe Storage

Li-ion batteries should not be placed in environments with excessive heat, so prioritize putting them in a cool and dry place. If you need to transport them anywhere, consider using a protective case with cushioning. You can partner with a specialized carrier that’s knowledgeable about handling hazardous goods.

Implement Fire Detection and Suppression

Fire-resistant battery enclosures and automated suppression can provide an ideal space for your Li-ion batteries. That said, it’s still vital to check these units now and then. Attaching gas detection sensors can help businesses see if any flammable gases are being released and act accordingly.

Transport Lithium Batteries at a Limited State of Charge

Avoid moving lithium-based batteries while they are fully charged, as this makes them more sensitive to heat. It’s best to transport Li-ion batteries at 30% unless otherwise approved. You can consider adding disclaimers on products so that consumers know the battery is not fully charged for safety reasons.

Secure Your Operations

Lithium is a material that can elevate the state of technology, but it’s dangerous to ignore its hazards. Take extra care when utilizing it in your offerings and operations to reap the benefits without the dangers.