TT Club whitepaper urges warehouses to strengthen lithium-ion battery storage control

September 22, 2026

TT Club, the leading global transport and logistics insurer, has published a new whitepaper with UK P&I Club and Brookes Bell examining the growing operational, safety, environmental and contractual risks associated with storing lithium-ion (Li-ion) batteries in warehouses. 

As demand for Li-ion battery storage continues to rise from consumer electronics, electric vehicles to energy-storage systems, warehouse operators face an increasingly complex risk profile. TT Club’s Warehouse storage of lithium-ion batteries whitepaper provides practical guidance to help the logistics industry manage these high-risk goods safely and responsibly. 

Thermal runaway presents a distinctive fire risk 

The paper highlights thermal runaway as the principal physical hazard. Triggered by mechanical, electrical and thermal abuse, thermal runaway can result in rapidly escalating fires, toxic and flammable gas emissions, potential re-ignition, and explosion risk. Li-ion fires can burn at temperatures exceeding 1,000°C and differ fundamentally from conventional fires, making early detection, appropriate suppression systems and robust emergency planning critical. 

TT Club advises warehouse operators to take a comprehensive, risk-based approach. This includes clearly defining contractual responsibilities, particularly where value-added services such as charging, co-packing or repacking are offered. Operators should establish maximum inventory levels, address stagnant or abandoned stock and ensure subcontractors operate on terms consistent with their own liabilities. 

Practical measures highlighted in the whitepaper include using a dedicated battery-storage area - or, preferably, a separate warehouse - designed with fire-resistant materials and clear access for fire-suppression systems. Facilities should maintain suitable storage temperatures, humidity and ventilation conditions, supported by early-warning systems able to detect temperature rises, gas emissions and smoke. Continuous thermal monitoring is recommended where feasible. 

Batteries or packages found to be hot, visibly damaged, dropped or impacted during handling should be promptly segregated to a separate area. They should then be managed in accordance with predefined procedures for inspection, quality-control assessment, rejection, safe quarantine or return. 

Fire-protection systems must reflect Li-ion battery behaviour 

The whitepaper also emphasises the importance of selecting fire-protection systems designed for the distinct behaviour of Li-ion battery incidents as traditional suppression methods may be less effective against Li-ion battery fires. TT Club strongly recommends early suppression fast response (ESFR) sprinklers, while in-rack systems can be effective for localised incidents and deluge systems are highly effective at cooling and extinguishing large fires. The fire-protection system selected should be appropriate to the site, storage layout and specific battery risks. 

“Lithium-ion batteries are indispensable to the energy transition and modern commerce, but their storage demands a step change in preparedness,” explains Mike Yarwood, MD Loss Prevention at TT Club. “Warehouse operators must combine clear contractual controls with purpose-designed facilities, rigorous operating procedures and close engagement with fire and rescue services. Prevention, early detection and decisive emergency response are central to reducing the potential for catastrophic loss.” 

Prevention, early detection and decisive emergency response are central to reducing the potential for catastrophic loss.

TT Club further calls for regular staff training and emergency exercises, readily available site plans for attending fire services, and plans for the safe management of potentially contaminated firefighting water following an incident. The paper notes that regulation and guidance remain inconsistent globally, making informed, proactive risk management essential. 

The whitepaper is available here

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