• Home / Insight / Lithium-ion battery legislation update

    Lithium-ion battery legislation update

    08/10/2024

    The regulation of lithium-ion batteries is a pressing issue, with safety concerns surrounding their use, storage, and disposal becoming more urgent. We find ourselves in a unique situation where two pieces of legislation are advancing in Parliament, both addressing the safety of lithium-ion batteries to varying extents. This alert will cover the details of these two bills, their current status, and what might happen next.


    1. Lithium-Ion Battery Safety Bill

    Introduced on 29 July 2024, the Lithium-Ion Battery Safety Bill is a private member’s bill aimed at enhancing the safe storage, use, and disposal of lithium-ion batteries, specifically targeting householders and battery energy storage systems (BESS). The bill seeks to increase public confidence in the use of these technologies by focusing on several key areas:

    • BESS Planning: Local planning authorities must consult with the Environment Agency, Health and Safety Executive (HSE), and fire and rescue services before approving BESS installations.
    • Online Sales: The bill requires online platforms to ensure products containing lithium-ion batteries comply with existing General Product Safety Regulations (2005) and any new safety regulations. This is crucial in tackling the proliferation of cheap and unsafe products that have been linked to fires.
    • Micromobility Vehicles: E-scooters and e-bikes powered by lithium-ion batteries must be certified by a Conformity Assessment Body (CAB) and display safety marks (CE or UKCA). The bill also includes provisions for criminal and civil liability for non-compliance.
    • Disposal Regulations: Regulations will be introduced to improve the safe disposal of lithium-ion batteries, which have been the cause of fires in waste systems. Notably, the bill avoids placing additional financial burdens on local authorities.

    While this bill is in its early stages, it is important to note that as a private member’s bill, it faces an inherently difficult path to becoming law. Private members’ bills historically have a much lower rate of success than Government bills, often due to time constraints and limited parliamentary support. This makes the future of the Lithium-Ion Battery Safety Bill uncertain, particularly as it competes for attention with broader Government-backed initiatives.

    We will continue to monitor how stringent the proposed regulations will be and how they may impact producers, importers, sellers, and their insurers.


    2. Product Safety and Metrology Bill

    In response to the above bill, the Government introduced the Product Safety and Metrology Bill in the House of Lords. This Government bill takes a broader approach, addressing not only lithium-ion batteries but also the UK’s overall product safety and metrology framework. The aim is to modernise UK safety regulations, ensuring they are fit for purpose in today’s world while promoting economic growth and maintaining high product standards.

    This bill would introduce powers to “respond to new product risks and opportunities to enable the UK to keep pace with technological advances, such as artificial intelligence (AI), and address challenges, such as the fire risk associated with e-bikes and lithium-ion batteries. It will also allow information about the products, for example, instructions for use for customers and importer details to aid supply chain traceability, to be supplied digitally, for example via a QR code linking to a website. It also would enable legislation to respond to future changes in global supply chains and the way that UK consumers purchase products.”

    Unlike the more focused Lithium-Ion Battery Safety Bill, this Government bill addresses a wider range of consumer safety issues. However, it remains unclear whether it will go far enough in governing the specific concerns around lithium-ion batteries, including storage, disposal, and online sales.


    What Might Happen Next?

    The overlapping nature of these two bills raises an important question: do we still need the Lithium-Ion Battery Safety Bill, or will it be subsumed by the broader Product Safety and Metrology Bill? Lord Redesdale, sponsor of the private member’s bill, is currently considering amendments to his bill, in light of more information provided regarding the Government bill.

    As these two bills make their way through Parliament, we anticipate considerable discussion – both publicly and behind the scenes – on whether the Lithium-Ion Battery Safety Bill will be withdrawn, modified, or allowed to proceed. However, given that private members’ bills face significant hurdles in comparison to Government bills, particularly in securing enough time and support to pass through all stages before the end of a parliamentary session, there is a real risk that the Lithium-Ion Battery Safety Bill may not progress to Royal Assent in any event.

    For now, it feels like we’ve waited a long time for regulation, and suddenly, two legislative vehicles have arrived at once.


    We will continue to monitor the progress of both bills closely and provide updates on any developments.


    Should you have any questions about how this legislation may affect your business, please feel free to reach out.

    Natalie Larnder - nlarnder@keoghs.co.uk

    Matthew Rogers - mrogers@keoghs.co.uk

     

     

    Natalie Larnder
    Author

    Natalie Larnder
    Head of Market Affairs

    Contact

    Related Insights

    Lithium-ion Battery

    The Lithium-ion Battery Safety Bill - what we know so far

    Podcast

    The Market Affairs Podcast: Lithium Ion Battery Fires

    Ev Feature

    Labour’s view on electric vehicles

    Stay informed with Keoghs

    Sign-up

    Our Expertise

    Vr

    Claims Technology Solutions

    Disrupting claims management with innovation & technology

     

    The service you deliver is integral to the success of your business. With the right technology, we can help you to heighten your customer experience, improve underwriting performance, and streamline processes.