Key insights
- Lithium‑ion battery fires and 'thermal runaway' are rising globally, driven by the widespread adoption of portable electronics, electric vehicles and industrial battery‑powered technologies
- Stockpiling of battery‑powered goods heightens commercial fire exposure, particularly in UK warehousing, logistics hubs and industrial estates where concentrated storage increases loss potential.
- Thermal runaway events pose significant risks of property damage, business interruption and environmental contamination.
- Governments and regulators are moving toward stricter battery safety and quality guidelines, placing greater responsibility on businesses to adopt robust storage, handling and disposal practices.
- Proactive mitigation, including safe storage design, proper charging discipline, early‑warning detection systems and staff training, is critical to reducing fire, explosion and operational risks linked to commercial battery use.
Lithium-ion batteries power much of our modern world, from handheld devices and warehouse robotics to electric vehicles and large-scale energy storage. They are embedded in almost every part of UK business operations, and as organisations accelerate electrification to meet sustainability goals, the UK lithium-ion battery market is expected to cross GBP8.8 billion by 20331.
Consequently, lithium-ion batteries have become essential to efficiency and carbon‑reduction strategies. But with their rapid adoption comes a rise in fire risks that many workplaces are not yet equipped to manage.
Thermal runaway: The leading cause of lithium-ion battery fires
"Across the UK, we're seeing a clear rise in lithium-ion related incidents, often in buildings never designed for concentrated battery storage," says Andy Northcott, national sales and distribution leader for risk management solutions at Gallagher. "Understanding where these batteries sit within your operations is the first step to controlling the risk."
Why incidents are rising in commercial buildings
The growth of battery-powered assets such as electric fleets, picking robots, pallet movers and portable tools, has increased fire exposure across logistics, warehousing, retail and industrial sectors, with urban areas experiencing the most frequency.
Most incidents occur during charging, particularly when devices are left unattended for long periods. Physical damage is another major trigger, including impacts from transport, handling, or incorrect storage, which can compromise internal cells, with failures occurring hours or even weeks later.
Certain building types face heightened risks, especially where charging occurs in shared or unsupervised areas. These include:
- Multi‑use commercial and residential buildings
- Warehouses storing high volumes of electronic goods
- Public buildings with open charging points
- Student accommodation with frequent e-scooter charging
- Waste and recycling facilities where batteries and devices are disposed off
For businesses, the consequences of a fire go beyond physical damage. Lithium‑ion incidents can disrupt operations, destroy stock and machinery, contaminate the environment and create potential liability for pollution or regulatory breaches. Severe cases, such as a fire that broke out at an under-construction battery storage site in Essex, which lasted three days and took over 200 firefighters to put out, illustrate how quickly these events can escalate3.
Safe storage and handling: Reducing concentrated risk
As companies increase stockpiles to manage supply‑chain uncertainty, concentrated storage of battery-powered goods is becoming more common. This intensifies fire exposure, particularly in large warehouses and logistics hubs.
Clear procedures for isolating and quarantining damaged or suspect batteries are also essential, as they can enter thermal runaway long after the initial damage occurred.
Recommended safe‑storage and handling practices for batteries
- Keep batteries away from combustible materials
- Use fire-resistant cabinets or segregated rooms for bulk storage
- Maintain good ventilation to prevent heat accumulation
- Avoid storing damaged, swollen or poor-quality batteries
- Keep storage areas dry, out of direct sunlight, ideally between 20°C-25°C
- Store batteries at 40-60% charge for stability4
- Implement early‑warning heat and gas‑detection systems
- Protect storage areas from impact by vehicles or moving equipment
Health and safety considerations
Lithium-ion fires release toxic gases and extreme heat, putting employees, contractors and first responders at significant risk. "Reducing these risks starts with proper training — ensuring staff understand safe charging, handling and storage practices onsite," explains Andy Northcott. The benefits of these efforts can also extend beyond the workplace, helping employees apply risk-aware behaviours in other environments, including their homes.
Workplaces may also ensure they have appropriate fire‑suppression systems and personal protective equipment for scenarios involving battery-powered equipment. Early detection is key, as thermal runaway can progress too quickly for traditional fire response measures.
Regulation, traceability and compliance
Regulators are tightening requirements as lithium‑ion usage grows. The Lithium‑Ion Battery Safety Bill (2024-26), currently under debate, aims to strengthen end‑to‑end safety across the battery lifecycle. The Health and Safety Executive (HSE) also provides guidance on safe storage and planning requirements for battery facilities5.
Traceability is an emerging focus. Counterfeit or uncertified batteries often lack safety features such as Current Interrupt Devices (CIDs) or Positive Temperature Coefficient (PTC) protections, significantly increasing fire risk. Battery passports, an ongoing industry-led proposal designed to track the lifecycle and integrity of batteries, are expected to become increasingly important for compliance.
Practical steps to mitigate fire and explosion risks
- Only purchase batteries from reputable manufacturers
- Use chargers approved by manufacturers and avoid overcharging
- Keep batteries away from heat, humidity, contact with saline water and physical damage
- Regularly inspect battery-powered equipment
- Ensure alignment with local fire service expectations
Embracing a safety-first approach for a more resilient future
Lithium‑ion batteries remain critical to the UK's transition to a low‑carbon economy. But as usage increases, so does the need for proactive, structured battery‑risk management. By improving storage, establishing charging discipline, training teams and adopting technologies such as Battery Management Systems (BMS), businesses can significantly reduce fire potential and build resilience.
"A structured battery‑risk strategy can dramatically reduce the likelihood and severity of incidents," adds Andy Northcott. Gallagher risk management specialists can help you assess current controls, identify risk gaps and implement practical measures, from training and storage design to early‑warning detection solutions, to keep people, assets and operations safe.
