Lithium-Ion Battery and Storage System Risk

Hazard picture

Thermal runaway occurs when a single cell heats up sufficiently, through mechanical damage, an electrical fault, overcharging or cooling failure, to trigger an exothermic decomposition reaction. This reaction generates heat and combustible, toxic gases and can propagate to neighbouring cells in a chain reaction. Water-based extinguishing cools the surroundings but often does not fully stop the reaction in deeper cells, so re-ignition remains possible hours after apparent extinguishment.

Protection concept

A risk-adequate concept includes a suitable cell chemistry and battery management system monitoring of voltage, temperature and state of charge, structural separation or clearance between storage modules to limit chain propagation, suitable gas detection and explosion protection for the combustible gases released, and a suppression concept matched to the technology. For large stationary installations, siting, distance to vulnerable areas and a documented emergency response plan for the fire service are additionally relevant.

Insurance relevance

Battery storage is a rapidly growing technology with comparatively young loss experience; insurers therefore assess cell chemistry, manufacturer quality, installation location and maintenance concept with particular care. A missing or incomplete fire protection concept based on recognised standards is regarded as a material risk factor when underwriting property and electronic equipment cover.