The UK arm of insurance company Allianz has issued a warning to the motor trade to be aware of the risks associated with Electric Vehicle battery fires. Recent cases have seen some workshops and garages extensively damaged, while the nature of the fires pose unique challenges.

Allianz UK recently investigated two workshop fires which resulted in over £5m and £1.5m worth of claims. Both were the result of a faulty EV battery that had been removed and was stored at the garage awaiting collection from the manufacturer for investigation.

Lithium-ion batteries, which are used in electric vehicles have levels of thermal instability that can be triggered by damage, mishandling and incorrect storage or transportation. In extreme cases this can lead to thermal runaway, which can mean rapid self-heating fire and the danger of explosion. Unlike normal fires, EV battery fires have the potential to reignite even weeks after originally being extinguished. 

Thatcham Research recently carried out a study that found that EVs are actually less prone to fire than vehicles with combustion engines, but if fire should take hold, it is the intensity and severity that can be a more serious danger. 

Olivia Baker, head of motor trade, Allianz UK, commented, “The severity and financial impact of lithium-ion battery fires are considerable. Due to the chemical reactions and toxic material that are left behind, these fires can render buildings beyond economical repair. Understanding the risks and implementing effective prevention and management strategies are crucial to safeguarding businesses and ensuring the safety of employees, though thankfully at the moment the total number of claims is relatively low.”

Allianz also says that workshops need to be aware of similar lithium-ion battery technology which is contained in rechargeable power tools, with a recent fire at a tyre fitting centre resulting in a £250,000 claim after a power tool caught fire whilst being charged.

Allianz has issued these key recommendations to minimise risk: 

• Implementing rigorous inspection protocols for damaged batteries
• Ensuring proper storage and charging practices
• Collaborating with insurers and brokers to prevent incidents

The company says by increasing awareness and education on lithium-ion battery risks, businesses can enhance safety and minimise potential hazards.