Insurance Australia Group (IAG) is spearheading an international research effort to develop comprehensive safety guidelines for the use and storage of lithium-ion batteries.
The project aims to fill critical gaps in knowledge and establish practical standards as battery-powered technologies become more prevalent.
The initiative brings together IAG with the Queensland University of Technology (QUT), EV FireSafe, Standards Australia, iMOVE Co-operative Research Centre, and other global partners.
The research will focus on understanding risks associated with lithium-ion batteries in electric vehicles (EVs) and micromobility devices such as e-scooters and e-bikes – given that the global EV and hybrid insurance market is expected to grow at a compound annual growth rate (CAGR) of 16.88% by 2030, according to HTF Market Intelligence.
Shawn Ticehurst, who heads IAG’s Research Centre, noted that the rapid adoption of EVs and other battery-powered devices in Australia has outpaced the development of safety regulations.
“This year, the sales of EVs, including plug-in hybrids, made up nearly 10% of all new car sales in Australia, while e-bikes now represent one-third of all bicycle sales,” he said.
He said the research will provide essential insights to ensure these batteries are stored, handled, and disposed of safely as they reach the end of their lifespan.
While fires in EV batteries remain rare, IAG’s data showed an increase in incidents involving lithium-ion batteries in devices such as e-bikes and e-scooters.
According to Ticehurst, these incidents often result from improper use, damage, or inadequate storage.
“There are many knowledge gaps we’ll be exploring through global collaboration, which will be key in developing effective best practice strategies,” he said.
The research project will examine multiple factors, including battery condition, charging behaviours, exposure to environmental elements, and the impact of vehicle age on fire risks.
The initiative includes several partners contributing expertise and resources.
Queensland University of Technology’s Energy Storage Research Group (ESRG) is coordinating the research and bringing its experience in battery technology and safety standards to the project.
ESRG director Joshua Watts highlighted the importance of aligning Australian standards with global best practices to ensure safe adoption of battery technologies.
“The pace of energy storage deployment and adoption in Australia is rapidly accelerating, and it is critical we conduct the necessary work required to ensure this is done safely,” he said.
The organisation is working to identify and address gaps in the current regulatory framework.
Adam Stingemore, chief development officer for engagement and communications, emphasised the organisation’s commitment to creating robust standards for battery safety that meet Australia’s unique needs.
“By addressing these challenges, we aim to protect the wellbeing of all Australians and support a safer, more sustainable future,” he said.
Specialising in EV battery fire data, the organisation is sharing insights from its global database of fire incidents.
Director Emma Sutcliffe said the project would help dispel myths about battery fires while improving safety for users and first responders.
“By addressing misconceptions around battery fires, we can enhance the safety of both emergency responders and everyone using and working around EVs and lithium-ion batteries,” she said.
The federally funded organisation focused on transport innovation is providing strategic input on the implications of electrification in mobility.
Managing director Ian Christensen underscored the importance of understanding and mitigating risks associated with the shift to battery-powered transport.
“Given the importance of electrification as we work to reduce transport emissions, this research to understand, avoid, and manage some of the unwanted consequences of more electric cars and devices is vital,” he said.
The findings from this research are expected to be published in 2026 and will guide the development of Australian safety standards for lithium-ion batteries.
