Defending product liability claims arising out of lithium-ion battery fires

The use of lithium-ion batteries has increased dramatically over the last few years. This appears to have led to an increasing number of fires. As a consequence, manufacturers are being presented with compensation claims and asking how best to defend them.

The use of lithium batteries

Lithium-ion batteries possess particular beneficial characteristics. Compared to other types of battery, they have a higher energy density; they charge quicker and discharge slower, they last longer in terms of number of charge and discharge cycles, and they have steadier load characteristics. They can be used in a wide range of temperature settings and such is the variety of shapes and sizes that they are adaptable to a wide range of uses.

So, lithium-ion batteries are now found in almost everything – from small items such as mobile phones to large electric vehicles. They are also used in industrial equipment, such as forklift trucks, and medical devices such as defibrillators. Alongside these, lithium-ion batteries are used in energy storage systems and other electrical systems.

There are millions in use today in the United Kingdom, both at home and at work, and, with the emphasis on green energy, millions more will be in use in the near future. The Government Office for Science estimates that demand for batteries generally will increase 20% year-on-year to 2030.

The hazards associated with lithium-ion batteries

Batteries store chemical energy and convert it into electrical energy. They combine flammable electrolyte with stored energy. If the cells within a lithium-ion battery create more heat than is dissipated, a sudden and uncontrolled release of heat energy can occur. This is known as “thermal runaway” and it can lead to fires.

The gases ejected from batteries then present additional hazards in those fires, such as explosions, toxic fumes and intense heat – maintaining the fires for longer than is seen in others not involving lithium-ion batteries.

Responsible manufacturers seek to address these risks by ensuring good design, such as battery management systems and cell structures and good manufacturing techniques together with adequate warnings and instructions for use.

Lithium battery fires

Increased proliferation of lithium-ion batteries appears to have led to a rise in the number of fires. The British Safety Council recently reported that, “since 2020, 10 people have died from fires linked to lithium-ion batteries and 190 people have been injured. In 2023, firefighters in London fought over 87 e-bike and 29 e-scooter blazes, a record for the nation’s capital”.

Although the numbers of fires when compared to the amount of these batteries in use is low, the devastating and tragic consequences and increasing rate of such lithium-ion battery fires are causing alarm amongst those monitoring the situation.

• As at February 2025, we are aware of three coroners making “Prevention of Future Death” reports at the conclusion of inquests into deaths during lithium ion-battery fires.
• The Fire and Rescue Services have conducted campaigns aimed at increasing consumer awareness of the risks associated with batteries.
• In August 2023, the Office for Product Safety and Standards has issued a product recall for a series of lithium-ion batteries which were found to have inadequate battery management systems. In October 2024, it ran a consumer awareness campaign around e-bikes and e-scooters and in December 2024 introduced guidelines aimed at manufacturers of e-bikes.
• There have been international product recalls such as on the Samsung Galaxy Note 7.
• Transport for London has banned e-scooters on the London Underground system.
• Until recently, insurers were treating lithium-ion battery fires as an emerging risk. That has now changed and insurers are expecting businesses to take steps to manage the risk as a condition of insurance.

Our suggestions on how businesses sharing these concerns can manage the fire risk presented by the use of lithium-ion batteries can be found here.

Defence of product liability claims

The increasing numbers of fires may lead to increasing numbers of compensation claims.

Businesses and individuals who have been injured or seen their property destroyed by fire understandably believe they are entitled to compensation. If they have the correct insurance in place, their insurers will pay that compensation. Their insurers then stand in their place and claim against manufacturers.

Individuals with no or inadequate insurance may claim against product manufacturers without understanding that such claims are not the same as claiming on their insurance.

The rate of product liability claims against battery manufacturers is increasing alongside the increased rate of lithium-ion battery fires.

However, in law, product liability claims are amongst the most difficult claims to pursue in the United Kingdom.

Product liability claim defence for lithium-ion battery manufacturers

All cases are fact sensitive, but there are many avenues to be explored by manufacturers of lithium-ion batteries wanting to defend product liability claims in the United Kingdom.

• Defendants can put claimants to proof. In a claim brought by a private individual under the Consumer Protection Act 1987, the claimant need not prove fault on the part of the manufacturer. Nevertheless, they must still prove there was a defect in the product and that the defect caused the damage for which they seek compensation. Manufacturer defendants have specific defences under the 1987 Act. For example, they can seek to persuade the court that no defect existed at the point of supply or they can advance a “state of the art” defence
• Consumer claimants are not limited to bringing claims under the 1987 Act. They can also sue in negligence. Businesses cannot bring claims under the 1987 Act For claims which are brought in negligence, claimants must prove breach of duty and causation. Allegations of breaches of duty can include sub-standard manufacturing or poor product design or failure to warn of risks. The burden on the claimant is a heavy one, whatever the allegation. Again, defendants can put claimants to proof. Also, defendants can more easily produce evidence of good design of a lithium-ion battery than can a claimant persuade a court of poor design. These are highly technical issues and almost invariably require expert evidence. A battle of the experts in court is costly and does not always resolve the matter in the claimant’s favour
• Investigation of fire damage claims involving lithium batteries is often hampered by lack of physical evidence due to total destruction in the fire. Claimants in such cases invite courts to infer a defect must have existed and that such defect caused their loss. However, as a general rule, courts are loathe to decide cases on inferences. Defendants can oppose the court making such inferences and remind the court of the claimant’s burden of proof
• With or without the subject battery, manufacturer defendants are entitled to demand that evidence of the complex chemistry, design and battery management systems in their products be considered by the court
• Importers who “white-label” products alleged to have caused injury or damage need to liaise with the original manufacturer to obtain evidence. Until a strategy for handling the main compensation claim is agreed, the interests of the two companies are aligned. Any contractual indemnification dispute can be dealt with separately
• Defendants will need good factual evidence about the physical origin of the fire, good documentation and a team of excellent company witnesses, independent battery experts and defence lawyers who can explain the defence to the court.

To make sure that legal expenses and compensation are paid by their own insurers, manufacturers should check their broker and insurer fully understands their business and products when taking out liability insurance.

This will help to allay insurers’ concerns about the risk presented by the business and should bring premiums down. Ultimately, manufacturers may need to persuade their insurers of the prospects of success in a claim, but this is not impossible.

Being a responsible manufacturer

Of course, manufacturers of lithium-ion batteries can take steps to avoid ever being sued or ever having to recall their products, such as:

• Designing and manufacturing a safe product using the best materials and incorporating the best battery management system possible
• Remembering that ‘safety as a concept’ includes the information provided to users. So, manuals should provide sufficient advice on safe use, such as charging practices, storage conditions and so on
• Public campaigns on safe use of lithium-ion batteries should be considered. Manufacturers do not harm their own commercial interests by improving consumer awareness of the risks associated with lithium-ion batteries. The more consumer understanding increases, the less likely a failure to warn allegation in a negligence action would be successful.

Lithium-ion batteries are a relatively novel product and their complexities are not well-understood by those outside manufacture and design. The increasing number of claims following fires involving lithium-ion batteries involve complex factual and legal issues. With the right evidence, manufacturers can defend product liability claims.