A Best-Practice Guideline for Preparing Your Facility or Home for the SafeUse and Storage of Batteries and Energy Storage SystemsA Best-Practice Guideline for Preparing Your Facility or Home for the SafeUse and Storage of Batteries and Energy Storage Systems
THE GROWING RISK
Lithium-ion (Li-ion) and lithium-polymer (Li-Po) batteries now power nearly every corner of modern operations: cordless tools and equipment, material-handling fleets, electric vehicles, micro-mobilitydevices, and the large stationary energy storage systems (ESS) that stabilize power supply and support renewable generation. Their high energy density, long service life, and fast recharging have made them the default choice. Those same qualities, however, concentrate a great deal of energy into a small, chemically reactive package. When a Li-ion battery is defective, damaged, poorly stored, or improperly charged, it can fail violently, releasing intense heat, toxic gas, and a self-sustaining fire that conventional extinguishers struggle to control.
The scale of the exposure is growing with adoption. Since the start of 2025 alone, the U.S. Consumer Product Safety Commission has issued 46 recalls and safety warnings for consumer products powered by lithium-ion batteries, and several high-profile facility fires have reshaped how regulators, fire officials, and insurers view the hazard. For any organization that uses, charges, or stores these batteries in more than trivial quantities, the question is no longer whether to manage the risk, but how thoroughly.
This guideline is a practical roadmap for our clients. It explains how and why these batteries fail, summarizes the emerging legal and regulatory landscape, and lays out configuration-specific bestpractices for preparing your facility, from a handful of tool batteries on a charging bench to a container-scale energy storage system.
UNDERSTANDING THE RISK
How lithium-ion batteries fail: thermal runaway
Nearly every serious Li-ion incident traces back to a single phenomenon: thermal runaway. It begins when one cell generates more heat than it can dissipate, often because of an internal short from a manufacturing defect, physical damage such as a puncture or crush, overcharging, deep discharge, or exposure to excessive heat. As the cell heats, it ignites its own flammable electrolyte; that heat spreads to adjacent cells, which fail in turn, producing a self-reinforcing chain reaction. Because the reaction generates its own oxygen, these fires are difficult to extinguish, can reignite hours later, and react violently with water where lithium metal is present.
Critically, failure does not happen all at once. It escalates through recognizable stages, and the earlier the failure is detected, the more options remain to intervene.
Beyond fire: toxic and environmental exposure
Li-ion fires are not only a combustion hazard. Burning cells release highly toxic gases, including hydrogen fluoride (HF) and per- and polyfluoroalkyl substances (PFAS, the persistent “forever chemicals”), that can injure the eyes, skin, and respiratory system and require evacuation. Water
used to fight a battery fire can become contaminated with heavy metals such as cobalt, nickel, copper, and manganese, creating a risk of soil and groundwater pollution if it is not contained. After the January 2025 Moss Landing energy storage fire in California, which destroyed roughly 55,000battery modules, EPA soil sampling detected several of these heavy metals at levels exceeding screening standards in the surrounding area.
The emerging legal and regulatory landscape
The regulatory picture is shifting quickly, and it increasingly reaches organizations that merely handle batteries rather than manufacture them. In May 2023, the EPA advised that most lithium-ionbatteries on the market today are likely to qualify as hazardous waste under the Resource Conservation and Recovery Act (RCRA) based on their ignitability and reactivity. The agency is now developing a dedicated “universal waste” category for lithium batteries, with a proposed rule anticipated in 2026 and a final rule expected in 2027. At the state level, Extended Producer Responsibility (EPR) programs are expanding. Illinois requirements took effect January 1, 2026, and California has enacted both stewardship-plan obligations (AB 2440) and a point-of-sale recycling fee (SB 1215). Meanwhile, some states impose stricter hazardous-waste thresholds than the federal baseline.
The liability exposure is equally significant. Under the federal Superfund statute (CERCLA), cleanup liability is strict, joint-and-several, and retroactive: facility owners and operators, parties that arrange for disposal or recycling, and transporters can all be named, and even sending a small volume of defective cells to a contaminated site can expose a company to a share of the full cleanup cost. Following Moss Landing, the operator entered a CERCLA settlement in July 2025 to fund a cleanup expected to take two or more years. Organizations once considered removed from battery operations, such as auto dealerships handling EV batteries or retailers managing consumer returns, can now trigger hazardous-waste obligations, and California penalties can reach tens of thousands of dollars per day, with criminal exposure for knowing violations.
FOUNDATIONS: SELECTION, INSPECTION, AND BUILT-IN SAFEGUARDS
Buy quality; avoid counterfeits
The single most effective way to reduce battery risk is to keep defective cells out of your facility in the first place. Purchase tools, equipment, and batteries from reputable manufacturers whose products are certified to the applicable Underwriters Laboratories (UL) standards, and buy replacement batteries and chargers only from the original equipment manufacturer (OEM) or its authorized vendors. Counterfeit and aftermarket batteries frequently omit the internal safeguards that protect genuine cells and are a leading contributor to failures. Where your application allows, consider lithium iron phosphate (LFP / LiFePO₄) cells, a Li-ion chemistry known for greater thermal stability and lower susceptibility to thermal runaway.
Inspect on arrival and before every use
Establish a quality-control step so a designated employee inspects new batteries on delivery, and personnel check batteries before each use. Remove from service, and dispose of properly, any battery showing bulging or swelling; cracked, broken, or discolored casings; excessive heat during charging or use; hissing; leaking; or smoke or unusual odors. Multimeters and digital or infrared thermometers support periodic, documented health checks. Keep a Safety Data Sheet (SDS) on file for every battery on site; these drive correct storage, handling, and emergency response.
Rely on built-in protections, but not on them alone
Quality Li-ion batteries include layered safeguards: a separator that shuts down ion flow as temperature rises, a pressure-relief vent, thermal interrupts and fuses, overcharge and short-circuitprotection, temperature sensors, cell balancing, and a Battery Management System (BMS) that monitors state of charge, temperature, and cell health and can disconnect the pack when it detects an anomaly. These features reduce risk but do not eliminate it; facility controls remain essential.
PREPARING YOUR FACILITY BY CONFIGURATION
The right controls depend on how batteries are used and stored. The practices below address the configurations our clients most commonly operate; a summary of key setbacks and standards appears in the table at the end of this section.
General and bulk storage
• Designate a single, controlled storage location for all Li-ion and Li-Po batteries: well-ventilated, dry, free of combustible materials, out of direct sunlight, and held at a manufacturer-appropriate temperature, generally about 50–80 °F (10–27 °C).
• For longer-term storage, keep cells at roughly a 30–50% state of charge rather than fully charged, and store only the minimum quantity needed; batteries packed closely together raise the risk that one failing cell will cascade to its neighbors.
• For larger volumes, keep quantities in high-hazard sprinklered areas incidental, limiting the battery footprint to about 200 ft² (20 m²) and 6 ft (1.8 m) in height, with roughly 10 ft (3 m) of open space to other stock and combustibles. Even a single pallet of Li-ion batteries can spread fire quickly, so consider relocating bulk quantities outdoors, to a temperature-controlled container, or to a dedicated fire-rated cabinet.
• Purpose-built Li-ion cabinets should be non-combustible (steel), fire-rated (commonly 90–120minutes, to standards such as UL 94, FM 6050, or EN 14470-1), ventilated, fitted with pressure-relief/explosion venting and spill containment, lockable, and clearly labeled (for example, “Lithium-Ion Battery Storage: Fire Risk”); space multiple cabinets about 10 ft (3 m) apart.
• Bulk warehouse storage warrants a fire-protection engineering review, as it often requires segregated areas, in-rack sprinklers, higher ceiling sprinkler densities, and a strong water supply. Keep an ABC or Class D extinguisher (per the SDS) in the storage area.
Charging stations for tools and equipment
Most tool-battery incidents occur during charging. To avoid this:
• Charge only with the manufacturer-specified charger for that battery; never mix chargers and batteries across brands or use aftermarket chargers, which can defeat built-in protections. Locate charging on a non-combustible surface, away from egress routes and combustible storage, with space maintained between charging batteries.
• Charge only while personnel are present; do not charge unattended or overnight. Remove batteries from the charger once charged, allow hot batteries to cool before charging, and use charging bags orfire-rated charging cabinets where practical.
• Post charging and storage instructions at the station.
Energy storage systems (ESS / BESS)
Stationary energy storage introduces the largest concentration of stored energy on many sites and warrants a design-led approach. New systems should be certified to UL 9540 (Energy Storage Systems and Equipment) and evaluated using the UL 9540A test method, which characterizes thermal-runaway fire propagation and informs required spacing, ventilation, and fire protection; battery units should be UL 1973-listed and inverters UL 1741-certified. Installations should follow NFPA 855 (Installation of Stationary Energy Storage Systems) and NFPA 70 (Article 706). For further continuity:
• Detection is the linchpin. Off-gas monitoring detects electrolyte vapor at the earliest stage and can initiate an automatic shutdown and alarm before smoke or fire, while lower-explosive-limit (LEL) gas detection should be interlocked with ventilation to keep any flammable atmosphere below 25% LEL.
• For suppression, note that clean-agent gas systems generally will not stop a thermal-runaway fire; water-based protection is preferred (a wet-pipe sprinkler system, or an open-head deluge with a fire-department connection for container installations), with sprinkler density designed to at least ExtraHazard Group 1.
• Site ESS in a non-combustible, locked enclosure separated from the rest of the building by a two-hour fire barrier, or outdoors; keep exterior containers at least 20 ft from buildings unless rated thermal barriers are provided, and ensure the room is externally accessible for manual firefighting.
• Round out the design with supervised smoke detection, temperature monitoring with high-temperature alarms, coolant-leak detection, seismic bracing where required, emergency power disconnects, and clear signage. Because ESS are network-connected, incorporate cybersecurity into the BMS and firmware, and commission larger or custom systems with a qualified agent under a formal operations-and-maintenance program with online condition monitoring.
Material-handling equipment (forklifts and pallet jacks)
Electric material-handling fleets increasingly use Li-ion packs with decentralized “opportunity charging” throughout the operation. System best practices for this equipment include:
• Specify batteries and trucks listed to the relevant standards: UL 2580 for Class 1 and 2 forklifts, UL 2271 or UL 2580 for Class 3 pallet jacks, with UL 583 for the trucks and UL 1998 / UL 991 covering safety software and controls.
• Place opportunity-charging points on non-combustible surfaces, away from combustibles.
• Site opportunity-charging points on non-combustible surfaces, away from combustible storage.
• Report any physical damage to a battery or its enclosure immediately, and keep incident-responsekits (fire blankets, gloves, non-combustible containment drums, and appropriate suppression media)near the equipment.
Electric vehicles and micro-mobility
E-bikes, e-scooters, and hoverboards are a frequent source of facility fires, and many jurisdictions now regulate them; in New York City, for example, e-bikes must be certified to UL 2849. As such, it is recommended that a policy be adopted that outlines the following:
• Either ban personal devices indoors, or allow only certified ones (UL 2849 / 2271 / 2272).
• Charge EVs with listed equipment installed by a qualified electrician, away from exits.
EMERGENCY RESPONSE AND INCIDENT READINESS
Even well-run facilities should plan for failure. Build a written emergency response plan around the principle that early action and fast evacuation save lives and property. It is heavily recommendedthat the local fire department be contacted and made aware of the type, configuration, and location of battery systems within your facility. Having their insight and input into the development of your emergency response plan is vital.
Detection and isolation. Train staff to recognize the early signs (unusual odor, discoloration, swelling, excessive heat, hissing, or smoke) and, only if it is safe to do so, to move a suspect battery away from combustibles into a fire-rated isolation container. Keep a pail of sand nearby as a smothering agent.
Small, incipient fires. Because battery fires emit toxic fumes, all untrained personnel should evacuate immediately. Only personnel specifically trained to fight small battery fires should attempt to do so, positioned between the fire and the nearest exit; if the extinguisher is ineffective, smoke becomes heavy, or the responder is at all uncomfortable, they should evacuate. If flames are subdued, submerge the battery in sand or douse with water as directed by the SDS; sand is the safer choice where lithium metal may be present.
Thermal runaway and large fires. No one should attempt to fight a thermal-runaway or large-scale fire. Activate the alarm, evacuate the building, and call emergency services, providing the battery type and size, the location, and any hazardous materials present, and hand the relevant SDS to responders when possible.
First aid. For eye or skin exposure, flush with water for at least 15 minutes and seek medical attention; move anyone exposed to fumes or smoke into fresh air and administer first aid or CPR as needed. Because effects can be delayed, exposed individuals should be evaluated by a medical professional.
Disposal and cleanup. Never place Li-ion batteries in general waste; route them to a certified recycler, and store damaged units awaiting pickup in a non-combustible container located about 25 ft (8 m) from occupied buildings. Provide containment or retention basins to capture contaminated firefighting water, consistent with the environmental exposures described earlier.
