The new Lithium-Ion Battery Safety Bill: where are we with legislation governing lithium-ion battery safety?

The new Lithium-Ion Battery Safety Bill underwent its first reading on 6 September 2024. We explain the aims of the bill and consider how it fits with the proposed Product Safety and Metrology Bill.

 What is the issue?

As the world turns to electricity to combat climate change, demand for lithium-ion (li-ion) batteries is expected to soar over the next decade from a demand of about 700 GWh in 2022 to a predicted 4.7 TWh in 2030, with electric vehicles being the key driver, according to research by McKinsey and Global Battery Alliance. 

As the prevalence of li-ion batteries continues to increase, so too do reports of fires involving them, which have increased 71% in the UK since 2022.  Li-ion battery fires have been a concern for some time, with numerous reports of fires at the very beginning of the supply chain, such as in the hold of the container ship Genius Star XI in January this year, and at the end of their lifecycle, such as the fire at the Hithin recycling site in February which led to the site refusing to accept items containing li-ion batteries. 

Li-ion batteries pack a large amount of energy into a small space. Most li-ion battery fires start when a cell short-circuits, with the fire spreading to the other cells. Thermal runaway occurs when the generation of heat becomes self-sustaining – and due to this unstable chemical reaction, makes the fire hard to bring under control. Li-ion battery fires can also result in the release of a cloud of toxic flammable gases, which can explode. 

What is the new bill?

The Lithium-Ion Battery Safety Bill is a private members bill introduced on 29 July 2024 by Liberal Democrat peer Lord Redesdale. Despite its broad title, the bill focusses mainly on the regulation of li-ion batteries in electric scooters and electric bicycles. 

The stated purpose of the bill is to protect householders and communities from the dangers of lithium-ion batteries by providing for regulations concerning the safe storage, use and disposal of them. The bill also aims to increase public confidence in Battery Energy Storage Systems (BESS), grid-scale energy storage systems for renewable energy. 

Specifically, the bill seeks to impose obligations on:

• Sellers of li-ion batteries. 
• Online marketplaces.
• Manufacturers and sellers of micromobility vehicles and e-bike conversion kits.
• Local planning authorities in relation to BESS.

All sellers of li-ion batteries

The bill requires the government to make regulations within 6 months governing the disposal of li-ion batteries. The regulations must include a requirement on sellers of li-ion batteries to:

• Display a prominent warning about the dangers of improper disposal of li-ion batteries; and
• Provide information about li-ion batteries and their safe disposal with the product.

Online marketplaces and sale of li-ion batteries online

The bill requires the government to make regulations requiring the operator of any online marketplace to take reasonable steps to ensure that all goods containing li-ion batteries offered for sale comply with product regulations, have not been recalled and are not known or suspected to be unsafe. Failure to comply with regulations made under this part of the bill may carry a criminal sanction punishable by a fine.

On the face of it, this provision would capture second-hand goods. Irrespective of the bill, as of 31 October 2024, eBay is set to ban the sale of e-bikes and their batteries by private individuals and can only be sold by "eligible business sellers".

Micromobility vehicles and conversion kits

Although in general usage the term "micromobility vehicle" can include golf carts, electric skateboards, hoverboards and the humble push bike, the bill uses the term to mean electric scooters and electric bicycles only. The bill simply uses the term "electric bicycle", which does not distinguish between electric pedal-assist bicycles and "throttle bicycles" (aka "twist and go" bikes), which do not require the rider to pedal in order to access battery power. However, we can infer that the bill is targeting pedal-assist bikes, since throttle bicycles are classed as motorbikes in the UK. 

The bill requires the government to make regulations requiring e-scooters and e-bikes to undergo a conformity assessment to ensure that essential safety standards have been met and to display appropriate marking (such as the CE or UKCA mark) confirming compliance.  Sale of e-scooters and e-bikes that have not been through this process will be prohibited and a failure to comply with the proposed regulations may carry a criminal penalty punishable by a fine. 

The bill also requires the government to make regulations setting safety standards for kits enabling purchasers to convert a pedal bicycle into an electric bicycle and charging systems for e-scooters and e-bikes. In particular, the bill prompts the government to consider whether to ban the sale of universal chargers for e-scooters and e-bikes powered by lithium-ion batteries. 
 
BESS planning considerations

BESSs are part of the UK's energy infrastructure.  They use batteries (typically li-ion batteries) to store electricity at times when supply is higher than demand. They are key to the UK's net-zero aspirations and to addressing the climate crisis. However, due to the perceived fire risks, obtaining planning permission for such facilities can be difficult.  

BESSs require planning permission and may need an OfGem licence. Government guidance released in August 2023 encourages developers to engage with local fire and rescue authorities before submitting planning applications. The bill would make this a binding obligation on the local planning authority and require consultation of the Environment Agency and the Health & Safety Executive in addition.  The bill also gives the government the power to regulate the granting of environmental permits for li-ion containing BESSs.

Another private members' bill had been introduced into the House of Commons on November 2023 by Conservative MP Dame Maria Miller: the Lithium-Ion Battery Storage (Fire Safety and Environmental Permits) Bill, which had similar aims, although this did not progress past the first reading. It remains to be seen whether this bill will fare better. 

How does this fit with the Product Safety and Metrology Bill?

 The government announced the Product Safety and Metrology Bill (PSMB) in the King's Speech on 17 July 2024, which will give the UK the option to adopt or reject EU regulation as it develops.  The briefing note accompanying the King's Speech cited e-bike battery fires as an urgent emerging threat necessitating reform, referring to a 78% increase in e-bike fires in 2023 compared to 2022 in London.

The details of the draft PSMB have not yet been published and it remains to be seen whether the government will agree to prioritise li-ion battery safety by supporting the Lithium-Ion Battery Safety Bill or whether it will prefer to simply incorporate its provisions into the PSMB.  The House of Lords Library research briefing on the li-ion bill references the PSMB and the King's Speech, but does not address the interaction of the two bills. 

The PSMB aims to ensure that the UK can respond quickly to changes in technology and EU legislation.  This is of particular concern since the EU is currently undertaking a programme of updates and reforms to improve safety or respond to emerging risks.  In the interests of stability and to limit business' compliance costs, the UK will be able to adopt the EU's reforms as they are made. This also paves the way for a more consistent approach.  

At present, existing EU product regulations, including CE marking, are applicable to UK products, but any changes made by the EU will only be applicable in Northern Ireland due to the application of the Windsor Framework. The PSMB will give the regulator powers to manage this divergence.

The PSMB also proposes to strengthen compliance and enforcement, with greater information sharing between regulators and market surveillance authorities. The proposed amendments to the metrology framework, which governs weights and measures, are not set out in detail, but aim to enable the regulator to respond promptly to technological progress, for example, by ensuring energy meters continue to be accurate following innovation.

Conclusion

The regulation of lithium-ion batteries and their storage is a developing area of law and no doubt will continue to be come more stringent the greater the use of such batteries and crucial to the safety and confidence of end users is ensuring the safety and provenance of the batteries.  

Fires caused by lithium-ion batteries can be extremely destructive and evidence of the cause is often destroyed, consumers have some recourse by virtue of the Consumer Protection Act 1987.  At present there appears to be no intention to introduce similar legislation to benefit commercial entities suffering damage as a result of such fires, only time will tell if that position is to change given the destructive nature of the fires and therefore the potential lack of recourse for commercial entities as well as consumers.

Andy Roper and Jithma Rukunayake would be delighted to discuss any queries or comments arising from this article.