Lithium-ion batteries are increasingly common in residential and commercial properties, but they come with serious fire risks. As electric vehicles (EVs) and battery-powered devices become more prevalent, property owners must understand the hazards and take proactive steps to mitigate them.
Lithium-ion batteries have attracted the attention of commercial property owners and operators, but not necessarily for good reasons. Defective or misused lithium-ion batteries have a history of fire risk when damaged, overcharged or improperly handled. They have resulted in tragic fires in both residential and commercial settings. A single battery, discarded in a trash bin, charged overnight in an enclosed space or stored in bulk near combustible materials, can ignite and cause extensive property damage.
The increasing popularity of lithium-ion batteries and EVs does not match tenants’ and property owners’ awareness of the dangers. Fires from these batteries can burn at temperatures reaching 1,800 degrees Fahrenheit, spreading rapidly and generating toxic fumes that make suppression and evacuation difficult. Yet these batteries are often charged in locations such as interior hallways, basements, parking garages and storage facilities, areas that are not always designed to handle high heat or flammable incidents. A single compromised cell within a pack can trigger a chain reaction known as “thermal runaway,” causing intense heat and flame that spreads quickly.
Compounding the problem, many existing parking garages and older commercial properties lack the infrastructure to handle fires of this magnitude. In underground or enclosed garages, an EV battery fi re can threaten nearby vehicles and structural integrity. Similarly, in warehouses or industrial spaces, batteries stored among corrugated boxes or flammable materials can ignite a blaze that spreads rapidly through the facility.
Regulations are evolving, but many jurisdictions still lack clear codes governing the storage, charging and disposal of lithium-ion batteries. Fire departments are also adapting, many now focusing on containment rather than extinguishment due to the difficulty of putting out these fires. Some departments even submerge burning batteries in water tanks for days to fully neutralize them. This underscores the importance of prevention and preparation at the property level.
Steps to Reduce Lithium-Ion Battery Risk
Property owners can take several steps to improve safety and reduce the risk of lithium-ion batteries located on site:
- Redesign parking facilities with safety in mind. Parking structures equipped with EV chargers should provide extra space between vehicles to slow the spread of fire. Upgraded sprinkler systems can pre-wet nearby vehicles to help contain flames. For older garages, adding heat and smoke detection systems is also critical.
- Enhance fire protection in storage areas. Industrial and commercial spaces which store lithium-ion batteries should be equipped with automatic sprinkler systems and noncombustible storage materials. Batteries should be stored at less than 60% of their charge capacity whenever possible, as partially charged batteries are far less likely to enter thermal runaway.
- Create designated charging zones. Charging lithium-ion batteries in living units or small retail spaces poses signifi cant fi re risk. Property owners can provide safe, ventilated charging stations equipped with fire-rated materials, thermal sensors and emergency shutoff switches.
- Require certified and tested batteries. Many municipalities now require that batteries sold within city limits have safety certifi cations from a nationally recognized testing laboratory (NRTL), such as UL or ETL. Property owners should establish policies requiring tenants or employees to use only certified batteries and chargers.
- Develop and communicate emergency procedures. Landlords should establish clear emergency action plans addressing lithium-ion battery incidents. These should include evacuation routes, communication protocols and contact information for emergency services. Equally important is tenant education, providing information sessions or written materials on safe charging, storage and disposal practices.
- Coordinate with insurers and safety professionals. Work closely with your insurance advisor to assess exposures, review property valuations and ensure coverage accurately refl ects the potential loss scenarios involving lithium-ion battery fires. Many insurers now off er risk engineering services or can recommend fire protection specialists who understand the nuances of battery-related hazards.
Managing the risks of lithium-ion batteries is not solely the responsibility of property owners; it requires cooperation among tenants, facility managers, contractors and local authorities. Establishing clear expectations, maintaining infrastructure and promoting awareness all contribute to a safer environment for everyone.
Property owners who take proactive steps today can protect their assets, reduce insurance costs and reassure tenants that safety is a top priority. By creating safer charging environments, enforcing proper storage and fostering a culture of safety, property owners can protect lives, assets and reputations while embracing the electrified future responsibly.
Frank DeLucia
Executive Vice President
Hub International Northeast
frank.delucia@hubinternational.com
(212)338-2395
