Battery safety and recycling

Lithium-ion batteries are key to storing renewable electricity (such as rooftop solar) for later use. However, their high energy density means they contain flammable materials, making proper safety measures critical. A lithium-ion cell has two electrodes (anode and cathode) which are separated by a porous membrane soaked in a flammable electrolyte, with metal current collectors on each electrode (see Figure 1 for an illustration of the cross-section). Under fault conditions, the cell can overheat and enter thermal runaway (see Figure 2), a self-heating chain reaction that can cause fires or explosions. In fact, IEC 62619 (an international industrial battery safety standard) defines thermal runaway as an uncontrolled, intensive increase in the temperature of a cell driven by an exothermic reaction. In practice, a runaway event can release toxic gases and intense heat before visible flames appear.

Clarification: Lithium-ion batteries do not detonate in the way conventional explosives do. The primary hazard is thermal runaway, which can involve intense heat, gas release, and fire. For large installations, environmental risks such as fire suppression, water runoff, and flood interactions are addressed through site-specific planning, drainage design, and environmental management conditions rather than through assumed explosion scenarios.

Modern stationary storage systems primarily use lithium-ion chemistries due to their energy density, efficiency, and cycle life. Research and development are ongoing into alternative designs, such as:

• Solid-state batteries
• Semi-solid and gel electrolyte batteries
• Sodium-ion batteries

While some of these technologies reduce flammable liquid electrolyte content, no battery technology is immune to failure, and all require systems for their management and protection.

Modern stationary storage systems primarily use lithium-ion chemistries due to their energy density, efficiency, and cycle life. Research and development are ongoing into alternative designs, such as:Lithium-ion cells can fail if stressed or damaged. Key triggers include physical damage (crushing or puncturing), overcharging, short circuits, or excessive heat. A recent peer-reviewed study explains that Lithium-ion batteries are sensitive to fast charging, extreme temperatures, or mechanical abuse. This can accelerate aging and lead to electrolyte breakdown or dendrite formation, both of which can cause internal short circuits and trigger thermal runaway. Conversely, charging at very low temperatures can cause lithium plating, another dangerous failure mode.

During thermal runaway, exothermic reactions produce heat and pressure. Gas vents, which often contain toxic gases such as Carbon monoxide (CO) and Hydrogen Fluoride (HF), appear just before flames, and can be hazardous if inhaled. Because of these dangers, testing standards (such as IEC 62619 and IEC 62133) require cells to withstand crushing, puncture, overcharge, short-circuit, and heat tests without causing fires.

Incidents linked to thermal runaway have been documented in residential, commercial, and waste management settings in Australia, often triggered by damaged batteries introduced into regular waste streams.

Safety standards exist to translate known battery failure risks – such as electrical faults, overheating, thermal runaway, fire spread, and unsafe installation conditions – into enforceable or adopted requirements across the design, testing, installation, and system integration stages. Different standards apply because lithium-ion batteries are used in different contexts, altering risk profiles that change significantly with scale, location, and application (e.g., portable devices, stationary storage, and grid-connected systems).

A critical distinction in battery safety is that an “approved product” does not automatically result in a “safely installed system.” A battery may meet a recognised product testing or eligibility pathway yet not meet the real-world safety outcome that depends on where and how it is installed. Siting, wiring, protection devices, ventilation, clearances, commissioning checks, and grid/inverter integration can materially alter safety. For this reason, Australian frameworks deliberately separate product eligibility and testing, installation compliance, and grid connection requirements, rather than treating them as a single step.

In practice, battery safety in Australia operates through multiple interacting layers. Installation and siting rules manage hazards that depend on physical location, such as proximity to habitable rooms, required spacing, fire barriers, and ventilation. Electrical wiring rules apply because battery systems form part of the electrical installation, and must meet requirements for conductor sizing, earthing, protection devices, and fault management. Grid and inverter connection requirements govern how systems interact with the electricity network, including network protection and system behaviour. Alongside these domestic requirements, international standards (such as the IEC, UL, and NFPA standards) serve as safety benchmarks and, in some cases, are adopted or referenced in Australian standards.

International battery standards are application-specific, not universal. For example, IEC 62133-2 applies to portable sealed secondary lithium cells and batteries, while IEC 62619 targets industrial and stationary lithium-ion battery systems. This distinction is important because applying the wrong standard to the incorrect application can create false confidence. The existence of multiple IEC standards reflects the reality that battery risks and acceptable controls differ substantially between consumer devices and large stationary energy storage systems.

Responsibility for battery safety is also divided by function. Standards Australia develops Australian Standards through committee-based, consensus processes that reflect technical expertise and stakeholder input. Electrical safety regulators, operating at the state and territory level and coordinated nationally through the Electrical Regulatory Authorities Council (ERAC), enforce electrical safety legislation and compliance. Industry programs, such as the Clean Energy Council (CEC) Approved Batteries program, set eligibility conditions for participation in incentives and market programs. These industry eligibility requirements are related to, but legally distinct from, mandatory installation and electrical safety compliance.

The transition to SA TS 5398 clearly illustrates this distinction. According to Clean Energy Council guidance, as of January 1, 2026, new battery product applications may be assessed under either SA TS 5398 or the existing Best Practice Guide. As of January 1, 2027, applications are accepted only against SA TS 5398, and Best Practice Guide approvals expire no later than December 31, 2027 (with some expiring earlier depending on certification terms). Importantly, this transition governs program listing and eligibility pathways and is not a declaration that previously installed systems are unsafe. Legal safety obligations continue to be defined by applicable electrical safety laws, adopted standards, and regulator or network requirements.

Best practice for stationary energy storage systems includes:

• Ensuring adequate ventilation and clearance to disperse heat.
• Physical fire barriers or containment around battery enclosures.
• Qualified installation and commissioning to verify compliance with electrical and fire safety standards.

To reduce risks, Australian installations require Battery Management Systems (BMS) fault shutdowns, isolators, smoke alarms (per AS/NZS 5139 and CA/SA/QLD rules), and proper cooling spacing. Homeowners are also advised to charge batteries on non-combustible surfaces away from flammable materials. In fact, a 2023 Australian Competition and Consumer Commission (ACCC)/Commonwealth Scientific and Industrial Research Organisation (CSIRO) safety report warns consumers not to leave batteries charging unattended and not to modify a battery pack or charger in an unsafe way. Common guidance includes keeping batteries away from heat and avoiding overheating devices.

Every modern Lithium-ion battery pack includes a BMS that acts as an electronic brain and safety officer. A BMS continuously monitors each cell’s voltage, current, and temperature, and balances charge between cells. If any cell overheats or exceeds safe voltage, the BMS can disconnect the battery or activate cooling. In effect, the BMS prevents overcharging, over-discharging, and unsafe operating conditions. Figure 3 shows a typical BMS block diagram in which sensors feed cell voltages and temperatures to a controller (shown as an MCU below) that manages switches, fuses, and balancing circuits to keep the battery safe. In practice, Australian regulations and standards require BMS and safety controls on all home energy storage systems.

Note: Multiple Li-ion cells (left, red) feed into a cell-monitor-and-balancer, sensors, and a microcontroller. The BMS monitors current and voltage via a fuse and solid-state switch, and monitors temperature (Temperature Sensor) to cut off or balance cells if needed.

New battery products must be tested and certified before sale. In Australia, many battery modules carry safety marks (e.g., the Regulatory Compliance Mark (RCM) with IEC testing). Key international tests include abuse tests from IEC 62619 and IEC 62133, UL 2580 (for EV batteries), and IEC 62485 (stationary systems). These require passing short-circuit, overcharge, crush, drop, and temperature tests. For example, IEC 62619 includes extensive tests under normal and fault conditions to ensure a battery pack can survive an external fire, cell rupture, overpressure, and electrical faults without catastrophic failure. Compliance with such standards means safer batteries for renewables.

Research is advancing in areas such as:

• Improved thermal management materials to slow heat buildup.
• Early fault-diagnosis models for short-circuit detection.
• Solid-state battery concepts that lower flammable liquid electrolyte content.

These developments do not eliminate risk, but can reduce the probability and severity of failures.

Recycling spent batteries recovers valuable metals and prevents environmental harm. Three main recycling pathways exist: pyrometallurgy, hydrometallurgy, and direct regeneration.

In pyrometallurgy, spent cells are mixed and smelted above 1000°C. High heat breaks down all organics and reduces metal oxides to a molten alloy. After cooling, valuable metals are recovered from the alloy, often via refining. This method is industrially mature and can handle mixed battery chemistries. However, it is energy-intensive and usually loses most of the lithium (and aluminium) to slag. Roasting and melting also produce toxic gases that require scrubbing. In practice, large smelters, such as Umicore and Glencore, use pyrometallurgy for high-volume scrap.

Note: Cells are first discharged, shredded and roasted at high temperature to burn off organic materials. The roasted material is then melted (e.g. in an arc furnace) to form a metal alloy. Cobalt, nickel and copper remain in the alloy; lithium and aluminium often go into the slag by-product.

Hydrometallurgy uses acids (e.g. sulfuric or hydrochloric) to dissolve electrode materials. After shredding and shredding, the cell mix is leached, producing a liquor containing dissolved metals. Various chemical processes then precipitate or extract each metal (for example, forming lithium carbonate or cobalt salts). Hydrometallurgy can recover lithium (unlike pyro) and achieve yields of >90% for metals. But it requires many chemical steps, generates large volumes of acidic wastewater, and does not preserve the original electrode structure. Companies such as Li-Cycle use a combination of shredding and leaching to refine batteries into precursor chemicals.

Note: Shredded battery cells are acid-leached: transition-metal salts dissolve into solution. Subsequent steps (precipitation, solvent extraction, or electrochemical processes) selectively recover cobalt, nickel, manganese, lithium, and other metals. This diagram highlights the sequence: shredding → leaching in acid → metals recovery.

Direct recycling is a newer approach that aims to restore spent cathode and anode materials to like-new condition. The process starts with discharging and safely dismantling the cells, then separating and purifying the electrode materials from binders and electrolytes. For example, the cathode powder may be treated with lithium salts at a moderate temperature to rebuild its crystal structure. The regenerated cathode (and often the graphite anode) can then be reassembled into new battery cells. Direct recycling uses much less energy than melting or leaching and retains the materials’ original properties. However, it requires careful sorting of battery chemistries and is still essentially at pilot scale. Research centres (such as ReCell) are developing industrial processes for direct upcycling.

Note: Used batteries (top right) are shredded or disassembled to produce a black mass of mixed materials. Critical steps then re-lithiate and regenerate the cathode and anode materials (for example, by adding lithium salts and heat) so they can be reused directly. This preserves the electrode structure and avoids the intensive processing required by other methods.

In Australia, recycling infrastructure for lithium-ion batteries is expanding but remains limited. In 2021, only about 10% of Australia’s lithium-ion battery waste was recycled (versus approximately 99% of lead-acid batteries). The Australian National Battery Strategy projects that without better recycling, Li-ion waste could exceed 137,000 tonnes per year by 2035. Beyond saving raw materials, recycling also offers significant emissions reductions, with the International Energy Agency (IEA) noting that recycled nickel, cobalt, and lithium incur approximately 80% less greenhouse gas emissions than virgin mining and processing. 

An example of an Australian recycler is Envirostream (under Livium), which collects spent Li-ion cells and processes them into a mixed-metal black mass, which is then turned into a cathode precursor powder. Further efforts to increase the recycling of lithium-ion batteries include:

• The first onshore lithium battery recycling facility in Victoria that can process batteries found in household items, which diverts over 8,000 tonnes of waste per year from landfill.
• The B-cycle national collection scheme, which places drop-off points in retail and community locations. It coordinates the collection and recycling of all portable batteries and designates accredited recyclers. The ACCC has noted that the B-cycle program diverts batteries from landfills and reduces fire risks during collection and transport.
• Industry advocacy for streamlined regulation to support the development of recycling infrastructure.

The improper disposal of lithium batteries is dangerous. Even a small, damaged cell thrown in household rubbish can ignite a fire in a bin or recycling truck. The Australian Government and waste authorities have announced that landfill disposal of Li-ion (and all battery) waste will soon be banned under the new national waste policy. Firefighters and regulators strongly advise against putting batteries in regular bins. According to the ACCC, no batteries – especially damaged or end‑of‑life – should be disposed of in household rubbish, due to the risk of fire in waste bins. Similarly, the B-cycle scheme (see Figure 7) explicitly instructs consumers to:

• Not toss batteries in general waste or recycling bins
• Tape them (use clear adhesive tape over the terminals) and
• Take them to your nearest B-cycle accredited drop-off point

Taping the battery terminals is essential. It prevents accidental short-circuits during storage or collection. In practice, Australians are encouraged to drop off used batteries at battery retail outlets, hardware stores, council recycling centres, or other designated points (refer to bcycle.com.au for locations). The B-cycle network ensures these batteries are sent to licensed recyclers rather than landfills. Unlike general waste, accredited recycling centres handle any battery type safely (they will discharge cells if needed and sort them by chemistry for processing).

Failure to follow these disposal rules can cause serious harm. A bin fire can reignite later, causing property damage or even injury to waste workers. As a result, individuals must always treat old batteries as hazardous waste.

If you have concerns about battery safety, installation, disposal, or environmental risk:

• Electrical safety: Your state or territory electrical safety regulator
• Fire safety advice: Your state fire authority
• Planning, waste, or siting issues: Your local council
• Environmental concerns (e.g. waterways, contamination): Your state environmental protection authority (EPA)
• Immediate danger: Call 000

For the disposal of household batteries, use B-cycle-accredited drop-off points (bcycle.com.au).

1) Are home batteries safe?

When properly designed, installed, and maintained, home batteries can have a good safety record, but incidents can still occur. Risk is reduced when you:

• use a reputable system with appropriate safety features,
• have it installed and commissioned by a licensed electrical professional, and
• follow manufacturer instructions and any required inspections/maintenance. 

2) What happens if a home battery catches fire (or shows warning signs)?

If you see smoke, flames, unusual heat, or a strong chemical smell:

1. Get everyone out and keep people away.
2. Call 000 and tell them a lithium-ion battery/energy storage system is involved.
3. Do not try to fight the fire yourself.
4. Do not re-enter or restart the system until emergency services and/or a qualified professional say it is safe.

3) Can batteries be recycled in Australia today?

Yes, but the pathway depends on the battery type and size.

• Household batteries (AA/AAA/rechargeables) can be taken to B-cycle drop-off locations across Australia (bcycle.com.au/drop-off).
• Home energy storage batteries are larger and must be handled through manufacturer/installer service pathways or approved product stewardship arrangements (availability varies by brand and location). Do not put any batteries in household bins. 

4) What warning signs should I take seriously (even before a fire)?

Treat these as urgent: smoke, hissing, unusual heat, chemical smell, repeated fault alarms, or visible damage. If any occur, keep clear and seek professional help; if there’s immediate danger, call 000. 

5) Can I install (or relocate) a battery myself?

No. Battery systems involve high-risk electrical work and must be installed/altered by appropriately qualified professionals. Using licensed installers also protects warranty/insurance positions in many real-world cases. 

6) What maintenance do home batteries need?

Most are “low maintenance,” but safety depends on:

• keeping vents/clearances unobstructed,
• monitoring system alerts,
• arranging inspection/service if faults recur, and
• following the manufacturer’s instructions for updates/service intervals. 

7) What should I do with a damaged or swollen battery (or damaged battery device)?

Do not handle it more than necessary. Keep people away and follow your local fire authority guidance; if there’s smoke/heat or an immediate risk, call 000. For disposal pathways (small batteries), use B-cycle drop-off locations.

• National Battery Strategy, Australian Department of Industry, Science and Resources 2024.
• Priority 4: Sustainability, ESG and circular economy, National Battery Strategy.
• Fire and Rescue NSW Management of Lithium-Ion Battery Safety Risks Review 2025
• Product safety advice on lithium-ion batteries from ACCC and SafeWork NSW.

Australian standards, wiring, and grid connection

Standards Australia. (2018). AS/NZS 3000:2018 Electrical installations (Wiring Rules). https://www.standards.org.au/flagship-projects/wiring-rules

Standards Australia. (2019). AS/NZS 5139:2019 Electrical installations—Safety of battery systems for use with power conversion equipment. https://store.standards.org.au/product/as-nzs-5139-2019

Standards Australia. (2024). AS/NZS 4777.1:2024 Grid connection of energy systems via inverters—Installation requirements. https://www.standards.org.au/standards-catalogue/standard-details?designation=AS-NZS-4777-1-2024

Electrical Regulatory Authorities Council. (n.d.). About ERAC. https://www.erac.gov.au

Clean Energy Council. (n.d.). Battery specifications change: Transitioning to SA TS 5398. https://cleanenergycouncil.org.au/industry-programs/products-program/batteries/battery-specs-change-transitioning-to-ts-5398

International and benchmark safety standards

International Electrotechnical Commission. (2022). IEC 62619: Secondary cells and batteries containing alkaline or other non-acid electrolytes—Safety requirements for secondary lithium cells and batteries, for use in industrial applications. https://webstore.iec.ch/en/publication/64073

International Electrotechnical Commission. (2017). IEC 62133-2: Secondary cells and batteries containing alkaline or other non-acid electrolytes—Safety requirements for portable sealed secondary lithium cells and batteries. https://webstore.iec.ch/en/publication/32662

Underwriters Laboratories. (n.d.). UL 9540A test method for evaluating thermal runaway fire propagation in battery energy storage systems. https://www.ul.com/services/ul-9540a-test-method

National Fire Protection Association. (2023). NFPA 855: Standard for the installation of stationary energy storage systems. https://www.nfpa.org/codes-and-standards/nfpa-855-standard-development/855

Australian policy, safety and stewardship

Australian Government, Department of Industry, Science and Resources. (2024). National Battery Strategy—Priority 4: Sustainability, ESG and circular economy. https://www.industry.gov.au/publications/national-battery-strategy/priority-4-sustainability-esg-and-circular-economy

Commonwealth Scientific and Industrial Research Organisation, & Australian Competition and Consumer Commission. (2023). Lithium-ion batteries: Safety risks and mitigation. https://www.productsafety.gov.au/system/files/CSIRO-ACCCLithiumIonBatteries.pdf

Australian Competition and Consumer Commission. (n.d.). Lithium-ion batteries—Consumer safety guide. https://www.productsafety.gov.au/consumers/be-safe-around-the-home/safely-use-batteries-and-technology/lithium-ion-batteries-guide

Standards Australia. (2023). Free battery safety guide to help Australia accelerate its transition to clean energy. https://www.standards.org.au/news/standards-australia-releases-free-battery-safety-guide-to-help-australia-accelerate-its-transition-to-clean-energy

B-cycle Australia. (n.d.). Battery recycling program. https://bcycle.com.au

Peer-reviewed research: battery failure, safety and recycling

Dai, H., & Panahi, A. (2025). Cause and mitigation of lithium-ion battery failure: A review. Journal of Energy Storage.https://doi.org/10.3390/ma14195676

Chen, S., Huang, H., Li, Q., & Gu, X. (2024). Advanced safety mechanisms for lithium-ion batteries. Energy & Environmental Science, 17(12), 4523–4538. https://doi.org/10.1039/D4EE02358G

Wang, Y., Li, X., Zhang, Z., & Liu, J. (2025). Safety and thermal management strategies for high-energy lithium-ion batteries. Energy & Environmental Science. https://doi.org/10.1039/D5EB00121H

Zhang, Y., Li, M., Chen, X., & Zhao, Q. (2025). Recycling and regeneration of lithium-ion batteries via direct cathode processing. Processes, 13(8), 2499. https://doi.org/10.3390/pr13082499

Chen, M., Ma, X., Chen, C., Tan, Q., Blesl, M., Lin, H., Wu, Y., Xi, Y., & Wang, J. (2025). A review of direct recycling of spent lithium-ion batteries. Materials, 18(24), 5608. https://doi.org/10.3390/ma18245608

Lach, A., Ziemann, S., & Schebek, L. (2025). Environmental impacts of lithium-ion battery recycling technologies. Applied Energy. https://api.semanticscholar.org/CorpusID:115356145

Research programs and reviews

ReCell Center. (n.d.). Direct recycling of lithium-ion battery materials. https://recellcenter.org/research/direct-recycling-of-materials/International Energy Agency. (2023). Recycling of critical minerals: Executive summary. https://www.iea.org/reports/recycling-of-critical-minerals/executive-summary