From e-scooters and power tools to the latest smartphones and laptops, it’s estimated that each Australian household now contains around 33 lithium-ion battery-powered devices on average.1 The problem? As lithium-ion batteries become a more constant presence in our lives, there appears to have been a correlated surge in lithium-ion battery-related fires.1,2
In Victoria, fire services now attend almost one fire a day caused by a lithium-ion battery.3 Five lithium-ion battery fires were recorded across the state over a single 24-hour period in March 2026 alone, hospitalising three people and destroying at least one home.4
Furthermore, while 2025 research shows that two-thirds of e-bike and electric scooter owners understand that misusing batteries and chargers can cause serious incidents, fewer than half believe it’s likely to happen to them.3 It’s a sobering result when you consider that fires caused by lithium-ion batteries can be particularly dangerous.5
“Even though most people know that lithium-ion battery fires can happen, that moment of assuming that it won’t happen to you can have a powerful impact on safety at home,” says Leanne Hughson, Chief Executive Officer of Energy Safe Victoria.3
So, what can cause a lithium-ion battery fire? Why are they so dangerous? What can you do to help prevent a lithium fire breaking out at your place? Are these fires covered by home insurance? And what is a lithium battery anyway? We’ve put together this guide to answer all of those questions and more.
What is a lithium battery?
There are actually two types – single-use lithium batteries and lithium-ion batteries.5
Single-use lithium batteries are often used in items such as watches, cameras and remote controls and they’re disposable once they’re drained.5
In contrast, lithium-ion batteries are a type of rechargeable battery that power almost all laptops, mobile phones, e-bikes, e-scooters, power banks, power tools and cordless equipment.6
They’re now the most common batteries used in rechargeable devices due to their:6
- Small size
- High energy density
- Better power efficiency compared to other battery types.6
While both types of lithium batteries pose a risk if they catch fire,7 throughout the rest of this guide, we’ll be looking solely at fires caused by lithium-ion batteries.
What makes a lithium-ion battery fire so dangerous?
Lithium-ion batteries are energy-dense and contain material that’s highly flammable,8 making them a potential fire and household electrical hazard.1,9 If they fail, energy is released rapidly, which can result in fire and even a lithium battery explosion.9
These events can ignite rapidly, produce intense heat and toxic smoke, and are difficult to extinguish.4
Why do lithium-ion battery fires start?
Several situations or events can lead to lithium-ion batteries becoming a fire hazard, including:8
- Overcharging or using non-compliant charging equipment
- Overheating
- Exposure to heat or extreme temperatures
- Physical damage, such as being dropped, pierced or crushed
- Short-circuiting
- Manufacturing defects.8
Some of these situations can sometimes trigger thermal runaway – a chain reaction that begins when the battery gets too hot and can’t cool down fast enough.9,10 This heat causes more heat to be produced, which can lead to overheating, fire and explosion.9,10
How to prevent a lithium battery fire
Lithium battery safety and fire prevention involve taking care with certain behaviours and habits, such as:
Where you buy lithium-ion batteries from:5
- Choose reputable manufacturers – Only buy quality lithium-ion batteries and devices and check that the charger features the Regulatory Compliance Mark so you know the product meets Australian Standards.
- Avoid imitation products – Cheaper, lower-quality batteries or chargers may lack important safety mechanisms, which could increase the fire risk.5
How you use and store these batteries:
- Follow the instructions – Always use batteries and chargers as directed by the manufacturer.5
- Avoid heat and moisture – Never leave or store lithium-ion batteries and devices in areas where they can be exposed to moisture or heat, including in direct sunlight or in parked vehicles.8
- Store at a lower charge – When batteries or devices aren’t in use, store them at a lower state of charge, around 40%, to reduce the risk of thermal runaway.5,8
How you charge lithium-ion batteries:
- Use the charger that came with the device – Using chargers that deliver the wrong voltage and current can cause damage to the battery that can lead to fires.8
- Avoid leaving batteries or devices unattended while charging – Don’t charge them overnight or when you’re not home, and once the device or battery is fully charged, disconnect it from the charger.8
- Don’t charge batteries or devices on combustible surfaces – Keep them away from couches, beds and carpet, and from flammable materials such as blankets, clothing and paper.8
- Avoid charging and using a device at the same time – Doing both simultaneously forces the device to run on external power rather than the battery, raising its temperature to a level that accelerates degradation.8
- Don’t recharge too soon – Always let batteries cool down after use and before recharging.5
- Choose where you charge larger batteries and equipment carefully – Power tools and e-scooters should be charged outside in open spaces or in a garage, shed or carport, away from living spaces where they can prevent people from getting to an exit.8
To help put safe charging advice into perspective, here’s a quick look at how charging mistakes could creep in when you’re using some of the most common lithium-ion battery-powered household devices.
| Device | Common charging mistake |
| Mobile phone | Charging it in bed |
| Electric scooter | Charging it in the living room |
| Robot vacuum | Leaving it on charge unattended |
| Power tools | Recharging too soon after use |
| Tablets and e-readers | Using third-party chargers |
Knowing how to spot signs of damage:
Avoid using or charging lithium-ion batteries or devices powered by these batteries that show signs of:11
- Leaking
- Bulging or swelling
- Overheating, including feeling extremely hot to touch
- Mechanical damage – for example, if they’re cracked or dented.11
Other warning signs of damage include:11
- Strong odours
- Discolouration or blistering of the casing
- Abnormal popping, hissing or cracking sounds
- Smoke and fumes.11
Never handle a swollen or ruptured device or battery with bare hands as the heat or chemicals can cause severe burns.11
Batteries that show any signs of damage should be disposed of carefully as they can become a fire risk.8 Never throw them – or undamaged lithium-ion batteries – in your household waste or recycling bin.12 They can cause fires during waste collection, transportation, handling and processing.12
Instead, undamaged batteries can often be safely disposed of at a battery recycling drop-off point12 – visit B-Cycle or Recycle Mate for more information.5
You may be able to take damaged lithium-ion batteries to a household hazardous waste collection facility.8 Contact your local council to ask how and where damaged batteries should be disposed of in your area.5,13
What should you do if a lithium-ion battery fire breaks out?
The action you take can depend on the size of the device or battery that’s smoking or on fire.8 Here’s what Western Australia’s Department of Fire and Emergency Services recommends:
For small batteries or devices such as mobile phones and tablets:8
- Don’t breathe in any smoke or fumes.
- Unplug it from the power outlet if it’s safe to do so.
- Without putting yourself at risk, take the device outside and away from anything flammable.
- Extinguish the device by doing either of the following:
- Dousing it with water
- Dropping it in a clean bucket of water
- Using a nearby fire blanket or fire extinguisher if you’re trained in how to use them.8
For larger batteries or devices such as e-bikes and vacuum cleaners:8
- Evacuate the area and, if it’s safe to do so, close any doors to slow the spread of the fire.
- Make sure no one goes back inside the building as battery gases, vapour and smoke are highly toxic if inhaled.
- Call Triple Zero (000) and wait in a safe location for firefighters to arrive.
- If anyone has been exposed to spilled chemicals, flying debris, smoke, vapours or flames, seek urgent medical assistance.
- Treat any burns immediately with cool running water for 20 minutes. Burns larger than a 20-cent piece also require emergency care – call Triple Zero and follow the advice of the operator.8
Can you put out a lithium battery fire with water?
Yes, according to WA’s Department of Fire and Emergency Services, if a small lithium-ion battery-powered device or battery is smoking or on fire, you can douse or drop it in a bucket of water, if it’s safe to do so, to extinguish it.8
Are lithium-ion battery fires covered by home insurance?
Yes, most home insurance policies include cover for fire.14
At Youi, cover for damage caused by fire, including lithium-ion battery fires, kitchen fires and bushfires, as well as damage caused by soot and smoke, is included as standard in our Buildings insurance and Contents insurance.15
Hopefully, you now have a clearer idea about the everyday home fire safety habits you might like to adopt or tweak to help prevent a lithium battery fire breaking out. However, keep in mind that having appropriate insurance in place could help cover the cost of repairing or replacing your house and your belongings in the unfortunate event something does go wrong.16
To explore whether our home insurance might be the right fit for you, consider starting a quote online or giving us a call on 13 9684.
1 Source: ACCC Product Safety – Consumers urged to use and store lithium-ion batteries safely to prevent deadly fires, October 2023
2 Source: CSIRO – Expert commentary: Lithium-ion batteries, November 2025
3 Source: Energy Safe Victoria – Safety reset urged as ‘it won’t happen to me’ mindset fuels battery fires, January 2026
4 Source: Energy Safe Victoria – Five battery fires in 24 hours prompts urgent safety warning, March 2026
5 Source: Qld Fire Department – Lithium-ion battery safety: take charge, March 2026
6 Source: Energy Safe Victoria – Lithium-ion battery safety, n.d.
7 Source: Fire and Rescue NSW – Battery and charging safety, n.d.
8 Source: WA Government Department of Fire & Emergency Services – Lithium-ion batteries, n.d.
9 Source: NSW Government SafeWork – Lithium-ion batteries, n.d.
10 Source: SA Government CFS – Lithium-ion batteries, n.d.
11 Source: Vic Government CFA – Charging and battery safety, December 2025
12 Source: Fire and Rescue NSW – How can I recycle my used batteries?, n.d.
13 Source: Tas Fire Service – Lithium-ion, n.d.
14 Source: Moneysmart – Storm, flood and fire insurance, n.d.
15 Exclusions and limits may apply. Where you have increased your cover or reduced your excess within 72 hours of a flood, storm, hail or bushfire occurring, cover will be limited to the amount that was effective prior to the change. Loss, damage or legal liability caused by, resulting or arising from flood, storm, hail or bushfire during the first 72 hours of your policy first being purchased is excluded unless certain conditions apply. See the PDS for full details.
16 Source: Moneysmart – Choosing home insurance, n.d.
