Why Lithium Battery Handling Has Become a Top Enterprise Risk
Technology has progressed significantly during the past twenty years, creating a mobile landscape that now dominates the electronics industry. However, it has also created new industry risks. Most companies today depend on electronics for enterprise operations. The rapid growth of battery-powered devices in enterprise fleets has increased the number of battery fires, making lithium battery handling a top enterprise risk. According to annual reports, fire, safety, and compliance incidents are most commonly linked to improper handling, with enterprise returns and refresh cycles posing the highest risk. As a core ITAD responsibility, handling lithium battery handling is a top priority. IT assets undergo a rigorous sorting process, and battery removal is conducted in full compliance with all applicable laws and regulations, including required certifications, safety tools, and policies to minimize fire risk.
Understanding Lithium Battery Risk in Enterprise Environments
Many are unaware that there are multiple types of lithium batteries. For example, lithium-ion batteries are made with liquid electrolytes in rigid metal cases, resulting in high density for laptops and other tools. Lithium-polymer batteries use gel or solid electrolytes in lightweight, flexible pouches, allowing for thin, customizable shapes used in devices such as phones and drones. Embedded batteries are built into cells inside devices and cannot be removed, which presents significant challenges to the e-waste industry.
Batteries, especially lithium-ion batteries, pose fire and explosion hazards during returns due to improper handling. A combination of improper packaging and poor handling often results in damaged or swollen devices upon return, which can cause thermal runaways. A thermal runaway occurs when a cell is punctured, which can easily happen if a device is damaged or swollen during transit. This can result in large-scale battery chemical fires that may take days if not weeks to extinguish. Repercussions from battery fires can be detrimental to an enterprise’s reputation, finances, and operations. Hundreds of facilities have been lost to battery fires, resulting in extensive losses of inventory and infrastructure. Delayed operations can negatively impact a company to the point of closure, and they can also lead to lengthy claims and insurance processes.
Where Battery Risk Enters the ITAD Process
IT asset disposition providers collect retired IT equipment for reuse or recycling, including device returns, which can often result in damaged or swollen devices. Because it is easier to toss electronics into a box and ship them off to be someone else’s problem, many devices are not properly stored or packed and arrive at ITAD facilities in very poor condition, increasing the risk of battery fire. Proper storage is just as important as packaging for lithium batteries, as excessive heat can cause them to swell and explode. Bulk enterprise refreshes are exceptionally hazardous due to the volume of devices that come through ITAD facilities and the amount of batteries that require handling. Lithium battery cells can trigger a chain reaction, setting off nearby batteries, making decommissioning data center and network equipment especially hazardous.
Pre-Return Controls Enterprises Must Put in Place
Although lithium batteries are hazardous, most mobile devices today use them, and proper handling and proactive measures are crucial for preventing battery fires. There are several controls enterprises must implement to help prevent battery fires:
- Battery inspection and condition checks should be required before processing to locate potential fire hazards.
- Identifying swollen, damaged, or recalled batteries before repair or recycling provides the necessary knowledge to know how to proceed and what measures to take for battery fire prevention.
- Check power-state requirements before shipment to ensure devices are stored and packaged appropriately before transit.
- Separate battery-containing devices when needed to prevent further damage to other assets or thermal chain reactions.
Battery fires are becoming common, and the use of mobile assets is only increasing. These pre-return controls will help tighten battery regulations and reduce fire risks.
Packaging and Labeling Requirements for Battery Returns
Packaging and labeling for battery returns are crucial because they alert ITAD facilities to the presence of hazardous materials. Adhering to UN-approved packaging standards and meeting labeling and documentation expectations ensures ITAD compliance. Inner packaging and cushioning are often neglected because they require extra time, but this step is critical for preventing battery fires. Proper packaging can be the difference between a smooth transport process and a battery explosion. Cushioning prevents devices from being knocked around too hard, helping protect the battery. Consumer packaging is often insufficient for enterprise returns because it is designed for single-journey, retail-to-home transport rather than the rigorous handling process for heavy, fragile, and high-value corporate IT assets. High-value assets require high-value packaging, especially battery-containing devices.
Transport and Reverse Logistics Considerations
Transporting battery-containing devices is hazardous in general, but even more so with lithium batteries. Many things can go wrong during transit, and it is best to consider reverse logistics while coordinating IT asset transportation.
- Consult carrier restrictions and transport to understand how to package and prepare assets for transit.
- Consider ground vs. air shipping and consult the different battery shipping regulations for each.
- Check the chain-of-custody implications for hazardous material to safeguard against any legal issues that may arise and maintain compliance.
- Temperature matters during transit, so ensure scheduling and routing align to reduce dwell time.
Facility Intake, Storage, and Processing Controls
Battery handling can also be managed at facility intake, in storage, and throughout processing with simple controls to ensure battery fire risk prevention measures are taken.
- Implement an intake screening process to assess battery condition. This reduces delays in the future and helps prevent risks.
- Maintain segregated storage areas to prevent the spread of fire if a battery fire occurs.
- Because of their chemical nature, Lithium battery fires are more difficult to manage, but ITAD providers exercise control via fire suppression and monitoring.
- Above all else, prioritize safe removal, discharge, or stabilization procedures to ensure e-waste safety protocols are followed.
Regulatory, Compliance, and ITAD Implications
When it comes to compliance and ESG implications, hazardous material handling is a crucial factor. DOT, IATA, and EPA oversight can result in noncompliance with national regulations, which can lead to audit failure. Documentation is a key element of audit prep for lithium batteries. Record keeping and incident reporting help safeguard the enterprise and employees against legal fees if a battery fire occurs. Battery handling can also impact ESG disclosures by addressing critical environmental, social, and governance metrics. Mandatory regulations require reporting on carbon footprints, recycled content, and lifecycle tracking, and mismanagement can result in hefty fines. Circular handling enhances corporate ESG ratings and reduces environmental and safety liabilities.
Why Certified ITAD Partners Matter for Battery Handling
Battery handling should not be taken lightly, and there are numerous certifications, regulations, and hoops to jump through to ensure proper precautions are being taken. In-house handling is typically limited by budget constraints and the availability of trained personnel. In contrast, ITAD providers are trained specifically for hazardous material handling and e-waste safety and implement cost control through standardized processes. Adherence to industry standards is crucial for compliance, and ITAD providers like HOBI maintain R2v3 and ISO 14001 standards and employ well-trained staff skilled in hazardous waste disposal. ITAD vendors also provide centralized workflows and documentation to ensure all battery-containing devices are processed under full compliance.
Treating Lithium Battery Handling as an Enterprise Control
Proactivity is the best practice for preventing battery fires. Treating lithium battery handling as an enterprise control, with preemptive measures, safety precautions, and documentation, will help tremendously in mitigating risks before it’s too late. Proactive planning also prevents costly, overreactive cleanup that will drain the budget and mark enterprises as a financial risk to partners. Poor battery handling leads to detrimental financial, compliance, and safety consequences. Mobility isn’t going anywhere; it’s only growing, and responsible lithium battery handling is non-negotiable as a core element of modern-day ITAD.
Don’t wait until your enterprise is up in smoke. Review return and refresh procedures and proactively plan with an ITAD partner that can handle all lithium battery risk management needs. Contact HOBI today at 877-814-2620 or sales@hobi.com to schedule a consultation and discuss the best way to protect your enterprise from the risk of battery fires.