Protect Your Business from Li-ion Battery Failure: Best Practices for Managing a Recall

The United States Consumer Product Safety Commission has recalled approximately 22,000 e-bikes from retailers, including Amazon, Sears, and Walmart. The recall is due to the risk of fire and burn injuries that could be caused by the lithium-ion batteries used in the bicycles. In addition, Ancheer, the China-based company that distributes these e-bikes, has received six reports involving fire, explosions, or sparks, including four burn injuries. 

The black e-bikes recalled have a model number AM001907, found on its packaging and instruction manual but not on the bike itself. Its water bottle-shaped cylindrical battery identifies it, and has 26-inch wheels with "Ancheer" printed on its downtube. The recalled bikes were sold online from January 2016 through June 2022 at a price range between $280 and $930. 

This recall follows a report released by CPSC about an increase in emergency room visits and deaths related to e-scooters, e-bikes, and hoverboards. Over 77,000 injuries across the U.S. resulting from these micro-mobility products in 2021 have been recorded - an increase of 127% compared to 2017 figures of 34,000 injured individuals. Additionally, 129 fatalities were associated with these products between 2017 and 2021; this figure rose from five in 2017 to 48 in 2021, according to CPSC's data. Fires with lithium-ion batteries powering e-scooters and those used in e-bikes and hoverboards are gaining attention from fire departments all over the country due to their potential hazard.

How Will Your Organization Handle a Li-ion Recall? 

If you regularly handle, ship, or store Li-ion batteries, then you - hopefully - already have a recall procedure in place. But how can you tell if it's enough to protect your organization from the backlash that a large-scale recall can cause? 

When handling a Li-ion recall, the first step is identifying potential hazards associated with the batteries. This involves assessing their design, manufacturing, and operational performance. Additionally, companies should analyze the failure rate of Li-ion batteries and develop preventive measures such as improving battery management systems or using higher-quality cells. Companies should also consider developing a strategy to replace recalled batteries with newer models that meet safety requirements and perform regular safety testing on all their products. 

It’s important for organizations to have strong guidelines in place when it comes to dealing with Li-ion recalls. For example, they should ensure that their product labeling accurately describes the battery type and associated risk factors. They should also create a process for quickly notifying customers when a recall has been issued and provide clear instructions on returning affected products safely. Ultimately, organizations should strive to improve overall safety by taking proactive steps, such as investing in research to understand the causes of Li-ion battery failures and developing safer designs.

Organizations must be prepared for many potential incidents related to Li-ion battery recalls, including customer backlash, legal action, reputational damage, and financial consequences. To protect against these risks, organizations should have comprehensive insurance policies that cover recall expenses, such as product replacement costs and customer compensation programs. Companies might also consider offering additional support services such as technical advice or customer service hotlines for those experiencing difficulties with their recalled batteries. 

Although Li-ion recalls can be daunting due to their potential far-reaching consequences, they are important to any responsible business operation. By following the best practices outlined above—such as researching potential risks before launch and putting proper safety procedures in place—organizations can reduce the likelihood of having to issue a recall while also ensuring that customers are safe from harm if one occurs.

Li-ion recalls can have far-reaching and potentially damaging consequences for any organization. Therefore, it is important to take proactive steps such as researching potential risks, improving battery management systems, and investing in research to understand the causes of failures. Additionally, organizations should ensure that they are prepared with comprehensive insurance policies and additional customer support services in case a recall occurs. If you need help mitigating the risks associated with a Li-ion recall or want more information on how Critical Risk Solution can assist, please contact us today! 

We look forward to helping your business protect itself against potential losses from li-ion battery failure.