FM Global: Who They Are and Why It Matters
FM Global is a global mutual insurance company that produces a range of engineering standards for the insurance industry. Their standards focus on loss prevention related to property and assets and are referred to as “Loss Prevention Data Sheets.” So, when reviewing these loss-prevention engineering standards, it’s essential to understand that their primary purpose is risk mitigation for insurance purposes.
It’s notable that the insurance industry, through FM Global, is taking the lead in providing standards for lithium battery storage and handling, while Australian regulators are still playing catch-up. If you are manufacturing and/or storing lithium-ion batteries in your business, it’s worth noting that while regulators are still developing specific regulations, FM Global has provided a useful standard that can help bridge this gap to a degree.
Below, we have summarised the key areas of the new FM Global standard. These areas are critical for businesses dealing with lithium-ion batteries as they help mitigate major fire and safety risks and reduce potential liabilities. Encouragingly, there is some consensus on best practices in areas such as State of Charge (SOC) management, segregation, fire suppression, ventilation, and managing damaged or used lithium batteries.
Key Insights from FM’s Lithium-Ion Battery Data Sheet
FM’s Loss Prevention Data Sheet is designed to guide the safe manufacturing and storage of lithium-ion batteries. Below are some key points covered:
1. Scope and Primary Hazards
The data sheet identifies several primary hazards involved in the handling of lithium-ion batteries. Key hazards include:
- Thermal Runaway: This is the most significant risk, where an internal fault or external condition causes the battery to overheat uncontrollably. The process results in the release of flammable gases, which can ignite and spread, leading to further fire and explosion risks.
- Fire, Reignition, and Explosion: Lithium-ion batteries are susceptible to reignition, especially if they’ve been through thermal runaway without proper cooling measures. FM Global notes that reignition is a serious concern in situations involving defective or mishandled cells.
2. Loss Prevention Recommendations
FM Global outlines several recommendations for reducing risks in lithium-ion battery manufacturing and storage. These are intended as best practices to complement regulatory compliance and enhance safety:
- Building Construction and Segregation: The use of non-combustible construction materials is advised for areas where batteries are stored. Additionally, the separation of different stages—such as manufacturing, aging, and warehouse storage—with fire-rated walls significantly reduces exposure risks.
- Ventilation and Fire Suppression: Proper ventilation is key to reducing fire damage, particularly in areas where thermal runaway may occur. FM recommends continuous ventilation in testing enclosures and installing automatic sprinklers both at ceiling level and within racks to mitigate fire spread.
- State of Charge (SOC) Management: The state of charge (SOC) of batteries has a direct impact on their stability during storage. FM Global’s data sheet suggests that batteries should ideally be stored at SOC levels between 30% and 60%. Lower SOC levels are safer for extended storage, as higher charge increases the risk of thermal events.
- Handling Damaged or Off-Spec Batteries: Damaged batteries pose unique risks and should be isolated from main storage areas. FM advises storing such batteries outdoors or in dedicated cut-off rooms to prevent the spread of thermal incidents.
Examples of Losses
The data sheet also includes examples of past incidents to highlight the importance of these guidelines:
- Warehouse Fire: In one incident, a sprinkler-protected warehouse containing over 12,000 lithium-ion batteries experienced a fire. The existing sprinkler system was unable to control the fire due to the storage height and density. This resulted in the fire spreading through multiple sections and ultimately led to a total warehouse loss.
- Lab Incident: Another example involved a test lab where two battery packs entered thermal runaway over the weekend. Delayed detection allowed the fire to escalate, causing significant smoke damage to the facility before being controlled by responders.
Final Thoughts on FM Global Guidelines
FM Global’s data sheet provides useful insights for businesses that store or handle lithium-ion batteries. As we conclude, it’s crucial to recognise the value of proactive measures to mitigate fire and explosion risks. Implementing these guidelines can lead to safer operations and reduced liabilities. For example, a warehouse facility storing large volumes of lithium-ion batteries could use these guidelines to redesign their storage layout, ensuring proper segregation and installation of fire-rated walls, thereby mitigating potential fire risks. The consequences of not managing these risks can be disastrous, so awareness and proactive risk management are essential. FM Global’s Property Loss Prevention Data Sheet can serve as a valuable reference for safer storage and handling practices for lithium-ion batteries.
It’s important to keep in mind that the purpose of these documents is to prioritise loss prevention from an insurance perspective. While Australian regulators are still playing catch-up in developing specific regulations for lithium-ion battery storage, FM Global’s standards fill an important gap. It’s notable that the insurance industry, through FM Global, is taking the lead, underscoring the need for businesses to adopt best practices ahead of formal regulations.
Our Dangerous Goods Solutions
Dangerous Goods Network provides a comprehensive range of services to help our customers navigate the complex and ever-changing regulations and requirements associated with the transport, storage, and handling of dangerous goods.
Our services include specialist consulting for the safe storage and handling of lithium-ion batteries and other dangerous goods, ensuring compliance with national and international regulations. This includes site assessments, gap analysis, and the development of safety management plans tailored to specific facility needs. Additionally, we offer training courses (including CASA- and AMSA-recognised courses) via DG Trainer, SDS management software support via SDS Connect, and specialist transport services through Marair.
For a tailored consultation to assess your business’s specific lithium battery and dangerous goods compliance needs, please contact us at info@dgnetwork.com.au.
Disclaimer: The content provided above is only intended to provide guidelines and does not constitute legal or expert advice. Please note that each business’s situation is unique, and these guidelines should be evaluated individually to ensure full compliance. Please consult an appropriate professional for specific advice on dangerous goods for your business – info@dgnetwork.com.au.