With the rise of electric vehicles (EVs) and renewables installations, businesses now routinely rely on warehouses to store ever-larger and more hazardous battery systems, yet the policy and regulatory framework remains unclear, creating conflict when it comes to insurance, safety and best practice.
On one side, many insurers issue detailed guidance. For example, AIG’s bulletin for warehousing lithium-ion cells, packs and modules warns that faulty or damaged batteries stored in general warehouse racks can trigger “thermal runaway”, a cascading heat event that may lead to fire, explosion or reignition long after a blaze seems extinguished. Their recommendations include segregating battery packs from general stock, storing in original packaging, installing dedicated fire detection and suppression systems, and inspecting for temperature anomalies and damage. Crucially, however, this guidance varies from one insurer to the next.
On the other side, safety-management commentary makes clear that while batteries present a real hazard, the regulatory framework in the UK is viewed as “sufficient but not specific”. For example, the British Safety Council points out that lithium-ion batteries fall outside the COMAH regime (Control of Major Accident Hazards). Existing health & safety and fire safety duties apply, but there is no standalone legislation specifically for battery stores.
This regulatory ambiguity plays out in the warehousing sector, where many organisations storing EV-battery modules, large battery banks, or racked storage of module-packs, report conflicting insurer demands, inconsistent best-practice checklists and confusion over zoning, segregation, racking, thermal monitoring and fire suppression.
The risk is not theoretical. In the UK, there has been a notable rise in battery-related fires. For example, fire services are reportedly tackling “at least three Li-ion battery fires a day” across the UK, with e-bikes, storage and delivery hubs implicated. Clearly, as warehouse operators store more and bigger batteries and insurers demand tighter protocols, the need for clarity in policy, regulation and standardised guidance is becoming urgent.
The government’s 2023 UK Battery Strategy set out the vision for a thriving battery-supply chain referring to “pro-growth regulation” and “industry standards to incentivise investment”, but there has been no specific legislation on storage. Consequently, warehouse operators and landlords storing batteries are finding that risk-transfer, lease negotiations, fire-risk mitigation and insurer dialogue are becoming increasingly complex and, in some cases, unmanageable.
If you operate or lease warehouse space that stores batteries, or if you are a supply-chain stakeholder in large-format energy modules, EV battery parks, or racked module storage, then now is the time to engage, alongside the UK Warehousing Association (UKWA). We are initiating a policy-workstream to clarify standardised best practices, accelerate regulatory clarity and engage with insurers and Government on warehouse battery-storage standards. If you want to get involved and shape how this sector moves from ambiguity to clarity, please contact UKWA to contribute to our work.
Clare Bottle
UKWA, CEO
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