Why Your Insurance Cover Matters
Is Your Lithium Battery Covered? Here’s What You Need to Know
Electric vehicles, e-bikes and solar energy systems are transforming how we power our lives — and that’s exciting! But as lithium battery technology becomes more common in our homes and driveways, it’s important to make sure your insurance keeps pace.
Here are a few smart steps every EV and solar battery owner should take:
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Notify your insurer — Let them know you have an electric vehicle or solar lithium batteries. This is a must, not an optional step.
Review your policy — Your standard policy may not automatically cover everything related to a lithium battery incident. It’s worth checking what’s included and what’s excluded.
Talk to your broker — Ask specifically about liability cover and any exclusions that may apply to lithium battery systems.
Take precautions — A little prevention goes a long way. Familiarise yourself with safety measures for lithium battery systems in your home or vehicle.
So What Do We Know About Lithium?
Lithium is an alkali metal that is highly unstable and extremely light — it actually floats on water. When heated, it produces VOC (volatile organic compound) gases — vaporised electrolytes including hydrogen fluoride (HF) — at temperatures between 170°C and 500°C. A venting Li-ion cell releases mainly carbon dioxide (CO2), but lithium also reacts with water to form hydrogen gas, which is highly explosive. A Li-ion fire generates its own oxygen when burning, making it almost impossible to smother. Burning lithium creates a metal fire at temperatures of up to 2,000°C.
Understanding Thermal Runaway
Thermal runaway occurs when a battery cell suffers abuse, short circuits, heats up, and bursts. Here’s the chain of events:
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A battery cell suffers abuse (e.g. a traffic collision)
The cell short circuits and heats up (~50–60°C)
At ~170°C, pressure in the form of highly toxic and flammable gases (30–50% hydrogen) escapes via the cell safety valve
Other nearby cells heat up
Ignition or vapour cloud explosion occurs
Other cells follow — the fire spreads rapidly
This feedback loop is what makes lithium fires so dangerous and so difficult to stop.
What Can Trigger Thermal Runaway?
The core hazard is the flammable electrolyte stored within the battery cell. Fires generally occur when a battery is on charge, or when flammable electrolyte leaks and contacts an ignition source.
Overheating can be triggered by:
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A spontaneous internal or external electrical fault / short circuit
Being punctured
Overcharging
External heating or fire
Mechanical abuse
A manufacturer’s defect
Why Lithium Battery Fires Are So Hard to Fight
Bear these critical facts in mind:
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A lithium battery is made up of many small batteries within a casing
Lithium produces its own oxygen — you cannot simply cut off the oxygen supply
A lithium fire reacts quickly and is extremely hot
A fire may only be discovered when it’s too late
Lithium fires involve all four elements of the fire tetrahedron: heat, oxygen (self-generated), fuel, and chemical reaction — making conventional extinguishing methods ineffective on their own.
Fire Extinguishers: What Works (and What Doesn’t)
Extinguishers for Li-ion fires range from 1.0L to 9.0L and use mediums such as wet chemicals, water additives, wet vermiculite (AVD), and D-class powder. Wet chemical products on the market include Lithex, F-500, Fire Block, Flame Block, and FFX Lion (a fluorine-free agent). Encapsulator agents — wet chemical and graphene-based — are also available.
Important: Always check the discharge distance of your extinguisher — proximity to the fire matters. Extinguishers have only been tested on batteries up to 600Wh — many home and vehicle batteries far exceed this capacity.
Containment of Small Li-Ion Battery Fires
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For smaller battery fires, containment options include:
Practical storage solutions
Fire blankets (capable of withstanding intense fires above 1,500°C) — but note: fire blankets should NOT be used on vehicles due to gas accumulation, which can cause a dangerous flashover Fire extinguishers
Sound housekeeping practices
The key question to ask yourself: What is the purpose of a portable fire extinguisher in a lithium battery fire situation? The answer — to contain, not necessarily extinguish.
The Hidden Risk: VOC Gases
The primary risk is fire. The secondary — and often overlooked — risk is VOC (volatile organic compound) gases. A single 1kW battery can produce between 500 and 1,000 litres of toxic gas. This is a significant hazard for anyone nearby, and for firefighters.
Recommended Action Plan
Every home, business, or facility with lithium batteries should have an emergency response plan in place covering:
✔Fire alarms ✔Clearly marked means of escape ✔Access routes for firefighters ✔Provision of water / fire hydrants ✔Venting and smoke extraction ✔Breathing apparatus
There is no one-size-fits-all solution — extinguishment and containment of small, medium, and energy storage system (ESS) fires are very different scenarios.
CONTAINMENT IS THE BUZZ WORD.
Summary: Key Takeaways
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Lithium batteries are made up of many smaller batteries in a plastic or metal casing
Lithium is highly unstable
Thermal runaway is very difficult to stop
Li-ion fires burn at extremely high temperatures
The goal is to cool the battery, not just fight the flames
There is no single solution — approach depends on the size of the battery system
Always understand the VOC gas risk and have a sound action plan ready
A proactive conversation with your broker today could make all the difference tomorrow.