Earlier this year, a fire broke out at the large-scale battery-storage facility near Moss Landing, California. The Vistra Corp.-owned facility housed roughly 100,000 lithium-ion battery modules, and when one rack ignited, it triggered a cascading, intense blaze.
The fire smoldered for days, re-ignited and forced local authorities to evacuate up to 1,500 residents. What followed was a massive clean-up led by the U.S. Environmental Protection Agency (EPA) to quickly and safely remove any remaining lithium batteries. Vistra Corp. assumed the costs of the lithium battery disposal and site clean-up.
That incident is not just a headline — it’s a sharp reminder of a serious fire and regulatory risk many businesses overlook: lithium battery disposal and storage, especially when mishandled, can become a catastrophic liability.
Why Lithium-Ion Batteries are a Fire Hazard
Lithium-ion batteries are commonly used in modern business operations — from electric forklifts and pallet jacks, to backup power modules, to consumer electronics used in offices and production lines.
Their advantages (high energy density, rechargeability and compact size) also make them inherently more hazardous if damaged, improperly stored or disposed of incorrectly.
When a battery cell fails (due to internal defect, damage, improper charging, or exposure to high heat), it may enter “thermal runaway” — a self-accelerating reaction where heat builds, nearby cells are triggered, and the fire can spike rapidly.
Once that happens, fires can burn extremely hot, produce intense heat and toxic off-gassing (for example, hydrogen fluoride), and become extremely difficult for firefighters to extinguish.
For an industrial facility, the risk isn’t theoretical. If spent or damaged lithium batteries are stored in large quantities, mixed in with standard waste or shipped without proper packaging, the chance of ignition increases.
Industries and Business Types at Risk
Every business that uses lithium-ion batteries, or receives them as part of inventory, equipment or waste, is in the cross-hairs of this hazard. Here are some of the common scenarios:
- Manufacturing & assembly: Devices and products may include lithium-ion modules; e-waste bins may contain batteries mixed with other components.
- Warehousing & logistics: Forklifts, pallet jacks, automated guided vehicles (AGVs) often rely on lithium batteries. When retired or damaged units are stored without segregation, they represent a risk. Warehouses also may have bulk quantities of batteries awaiting reuse or recycling.
- Data centers / backup power: Uninterruptible power supplies (UPS) and battery-storage modules often employ lithium-ion technologies; when replacements are taken out of service, proper disposal is crucial.
- Retail & electronics stores: Consumer devices (e-bikes, scooters, power tools, consumer batteries) may be returned, damaged or obsolete; if they’re simply binned or mixed with general waste, the fire hazard remains.
- Medical / laboratory facilities: Equipment and instruments using lithium‐ion packs or rechargeable modules may sit in storage as “dead” or unused batteries, or in equipment awaiting disposal.
- Construction, EV service centers, tool rental operations: Many of these rely on lithium-ion powered tools or vehicles; when batteries degrade, proper disposal is required.
In all these sectors, the common theme is the following: Lithium-ion batteries end up in a facility’s waste stream or equipment replacement flow, and if not handled as hazardous waste (or at least special waste), they pose a fire risk and a regulatory risk.
Regulatory Oversight: OSHA, EPA & Compliance Obligations
From a regulatory standpoint, businesses must treat lithium-ion batteries with appropriate safety and disposal protocols. The Occupational Safety & Health Administration (OSHA) identifies the particular hazards of lithium battery storage and handling and requires employers to maintain hazard communications, training, emergency action plans and safe storage.
Meanwhile, the United States Environmental Protection Agency (EPA) views spent lithium-ion batteries as potentially regulated under resource-conservation/waste regulation, such as the Resource Conservation and Recovery Act (RCRA), depending on their condition, chemistry and whether they’re “hazardous waste” versus “universal waste.”
Improper disposal can put a company in violation of hazardous-waste compliance requirements, leading to penalties, cleanup costs, and liability for fires or environmental contamination. In the Moss Landing case, the EPA is overseeing one of the largest lithium-ion battery cleanups in its history, illustrating how significant the regulatory response can be when things go wrong.
For businesses, the takeaway is this: Simply discarding old lithium batteries with general trash or mixed recyclables is insufficient. Your facility has to treat them as a special waste stream, segregate, label, store safely, and contract with a licensed hazardous waste disposal partner. Failure to do so elevates fire risk and compliance/risk exposure.
Safe Disposal and Recycling Programs: The Solution
Given this backdrop, it’s vital for facility managers and environmental compliance officers to implement a proactive program for lithium battery disposal. Here’s how a responsible approach can help protect your business:
- Identify and segregate all lithium-ion batteries. Create inventories of battery-powered equipment, retired packs, damaged units and battery waste. Ensure spent or damaged batteries are isolated (in approved containers), protected from short-circuit, stored in cool dry conditions, away from flammable materials, and labelled accordingly.
- Storage for disposal. Until disposal pickup or transport, maintain separate, fire-rated storage (if required), monitor for temperature rises, avoid mixing good and damaged batteries, and implement periodic inspection. Many battery-fire incidents start because damaged or returned battery packs were mingled with regular stock.
- Contract with a licensed hazardous waste disposal/recycling specialist. Engage a vendor experienced in lithium battery disposal/recycling. They will have the EPA ID, DOT/THM shipping compliance, proper packaging and transport protocols, chain of custody documentation, and recycling pathways for recovery of cobalt, nickel, lithium, etc. This helps you achieve hazardous waste compliance, mitigates disposal risk and reduces the temptation to “just throw batteries in the trash.”
- Train staff and embed procedures. From receiving retired battery packs, to packing for transport, to documenting disposal, your team must understand the lithium-battery fire risk, the regulatory obligations (for example hazardous waste manifesting or universal waste rules), and safe handling/storage procedures.
- Review your vendor and documentation regularly. Ensure the disposal company is still properly licensed, provides you with certificates of recycling/hazardous waste disposal, and that your company retains records as required for auditing/regulatory review.
By implementing a disciplined program like the above, you reduce fire risk, protect your facility, satisfy hazardous waste compliance, and uphold workplace fire safety.
Final thought: Don’t Throw Lithium Batteries in the Trash
At the end of the day, the biggest mistake many businesses make is underestimating what happens after a lithium-ion battery leaves service. If you simply toss it in the trash, mix it with standard recyclables, or leave it in a “to-be-disposed” bin indefinitely, you are still legally responsible for what happens.
If a fire occurs, regulators will look upstream: Did you segregate? Did you ship via a licensed transporter? Did you document the chain of custody? Did you store it in a safe manner?
Working with a licensed hazardous waste disposal company on a regular basis not only ensures proper disposal, but also removes the temptation to “just chuck it” and hope for the best. It shifts liability to a professional partner, maintains compliance documentation, supports workplace fire safety, and gives you the peace of mind that you’ve done your due diligence.
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