Lithium-ion batteries are now everywhere across the trades. They power cordless tools, phones, laptops, tablets and an increasing range of battery-powered equipment used on worksites and in workshops every day. Their impact on productivity is undeniable — lighter tools, longer run times and fewer cables have changed how tradies work.
But alongside these benefits is a set of risks that aren’t always well understood. And while lithium-ion battery failures are uncommon, when they do occur, the consequences can be severe.
As more trade businesses rely on battery-powered tools and devices, it’s important to understand why lithium-ion batteries behave differently to traditional power sources, and why awareness matters.
Why Lithium-Ion Batteries Are Everywhere
Lithium-ion batteries have become the dominant battery technology worldwide because they store large amounts of energy in a small, lightweight form. Compared to older technologies like lead-acid batteries, they deliver more power without adding bulk and are designed to handle hundreds or even thousands of charge cycles.
This has enabled the rise of powerful cordless tools and portable devices that are now standard across construction, electrical, plumbing and maintenance trades. From a practical point of view, lithium-ion batteries make work faster and more flexible.
However, the same high energy density that makes these batteries so effective is also what makes failures more dangerous when things go wrong.
The Hidden Fire Risk
Lithium-ion batteries are generally reliable, but they differ from other batteries in one critical way: they contain a flammable liquid electrolyte. If excessive heat builds up inside the battery, that electrolyte can ignite.
This process can lead to what’s known as thermal runaway — a rapid, uncontrolled increase in temperature that can result in an intense fire or explosion. Once thermal runaway begins, lithium-ion battery fires can be extremely difficult to extinguish, as the battery continues to release energy and fuel the fire.
In practical terms, this means a single battery failure can escalate quickly, particularly in environments where other tools, materials or structures are close by.
How Failures Can Occur
On worksites and in workshops, batteries are often exposed to tough conditions. They’re transported daily, dropped, knocked around, stored in vehicles and charged repeatedly – sometimes in hot or enclosed spaces.
Lithium-ion battery failures can be triggered by a range of factors, including:
- Physical damage to battery cells
- Manufacturing defects
- Short circuits
- Overloading
- Overheating
- Issues during charging
Importantly, damage isn’t always visible. A battery may appear intact externally while internal components have been compromised.
Most modern lithium-ion devices include a Battery Management System (BMS). This electronic system monitors voltage, current and temperature, and can shut the battery down if a fault is detected. While BMS technology significantly reduces risk during normal operation, it doesn’t remove it entirely particularly if batteries or charging equipment are damaged or mishandled.
Why This Matters for Trades and Small Businesses
For many trade businesses, lithium-ion batteries are often stored or charged together in workshops, tool rooms, site containers or vans. Charging frequently happens after hours or overnight, when no one is present.
If a battery failure occurs in these settings, there’s a higher risk of fire spreading before it’s noticed. Beyond the immediate safety risk, battery-related fires can damage vehicles, equipment and premises, interrupt work and impact the continuity of small businesses.
As battery-powered tools and equipment become the norm, lithium-ion batteries are no longer a niche risk – they’re part of everyday operations.
A Risk Growing with Technology
Demand for lithium-ion batteries is expected to continue rising as more tools, devices and vehicles move to electric power. For trades, this brings ongoing efficiency gains but also increased exposure to high-energy batteries.
Understanding that lithium-ion batteries behave differently to traditional power sources is a key part of working in modern trade environments. Failures may be rare, but when they occur, the impact can be significant making awareness an essential first step.
Disclaimer: QBE makes no warranty or guarantee about the validity, currency, accuracy, completeness, or adequacy of the content in this article that does not relate to QBE’s insurance products. Readers relying on this content do so at their own risk. It is the responsibility of the reader to evaluate the quality and accuracy of this content. Reference in this article (if any) to any specific product, process, or service, and links from this content to third-party websites (if any), do not constitute or imply an endorsement or recommendation by QBE and shall not be used for advertising or service/product endorsement purposes. QBE Insurance Products issued by QBE Insurance (Australia) Ltd. ABN 78 003 191 035, AFSL 239545 (QBE). Normal underwriting terms and conditions apply. Any advice provided is general only and has been prepared without taking into account your objectives, financial situation or needs and may not be right for you. Please read the Policy Wording or Product Disclosure Statement (PDS) and Target Market Determination (TMD) to decide if a product is right for you.



