Lithium-ion batteries (li-ion batteries) have revolutionized the way we power everything from household electronics and medical devices to electric vehicles, industrial equipment, and renewable energy storage systems.

However, their ubiquity comes with inherent challenges, especially concerning product safety and navigating intricate regulatory frameworks.

One of the most common hazards associated with li-ion batteries is their tendency to overheat, potentially leading to thermal runaway—a chain reaction where rising temperatures exacerbate conditions until the battery ignites. Despite these risks, many consumers are unaware and engage in unsafe practices that heighten the likelihood of thermal runaway or combustion.

Leaving a li-ion battery on its charger, even after reaching full charge, is one such common habit. This overcharging significantly increases the risk of overheating and fire. Reports of fires linked to li-ion batteries span a wide range of products, from electric-bikes to gardening tools. Moreover, instances of consumer electronics equipped with these batteries overheating on airplanes have risen by 28% from 2019 to 2023.

Li-ion battery-related recalls have fluctuated over the past decade, typically mirroring the rise and fall in popularity of products like hoverboards and e-bikes. In 2024 alone, 15 consumer product recalls were issued for events involving li-ion batteries, affecting 870,000 units.

Managing risks in transportation

A single li-ion battery can cause significant damage if it overheats and ignites. That damage can be exponentially greater if multiple lithium-ion batteries are in close proximity and are not packaged safely and securely. This is more likely to happen during transportation of the batteries themselves or of products containing these batteries. If a single li-ion battery experiences thermal runaway, it can propagate to other batteries or combustible materials nearby, potentially resulting in large fires with severe consequences.

A single li-ion battery overheating and igniting can cause significant damage, but the risk escalates dramatically when multiple batteries are stored or transported in close proximity without proper safety measures. This is particularly concerning during the shipment of batteries or battery-powered products, where inadequate packaging can increase the likelihood of thermal runaway propagating to nearby batteries or combustible materials, potentially leading to large-scale fires with severe consequences.

To assist manufacturers safely ship li-ion batteries in accordance with regulations, the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) recently released an updated guide covering a variety of li-ion battery types, configurations, and sizes.

The guide specifically covers best practices for shipping damaged, defective, or recalled (DDR) batteries, which often pose the greatest safety risk. DDR li-ion batteries are restricted to transport by highway, rail, or vessel and must meet strict packaging and labeling requirements to mitigate potential hazards.

In addition to the DOT, the International Air Transport Association (IATA) recently revised its battery guidance for transporting lithium-metal, lithium-ion, and sodium-ion batteries by air and outlines the restrictions on using this form of transport.

Even for the most experienced companies, li-ion battery product recalls can be complex and costly. Mismanaged implementation can exposure manufacturers to regulatory scrutiny, consumer lawsuits, and reputational damage. Given the particularly hazardous nature of DDR batteries and the variety of additional requirements for transportation of any li-ion batteries, partnering with a third-party expert who specializes in product recalls and the removal of hazardous materials can help ensure a recall more efficient, effective, and safe recall process.

Looking ahead

Regulators in the U.S. and around the world are exploring ways to tighten oversight of li-ion batteries. In 2024, legislation passed in the U.S. House requiring the Consumer Product Safety Commission (CPSC) to issue a consumer product safety standard for rechargeable li-ion batteries used in micromobility devices, such as electric bicycles and scooters, to mitigate fire risks. The state of New York passed a comprehensive set of laws in July 2024 governing the use of li-ion batteries that, among other provisions, requires that any li-ion batteries used in micro-mobility devices, bicycles with electric-assist, or mopeds be manufactured in accordance with certain standards and specifications. Other states may follow suit, increasing pressure to enact national legislation.

In Europe, the EU adopted a new comprehensive Batteries Regulation in 2023, expanding producer responsibilities for portable batteries, among others, to cover waste management requirements. Meanwhile, in the UK, a Lithium-ion Battery Safety Bill is in committee in the House of Lords that would regulate the safe storage, use, and disposal of li-ion batteries. As regulatory scrutiny intensifies, manufacturers must take a proactive approach to risk management across the entire product lifecycle. This includes developing and testing recall plans, auditing shipping practices to ensure compliance, and taking the necessary steps to implement a robust recall response, including the safe disposal of hazardous products.