As lithium-ion battery storage rapidly powers Australia’s mining sector — with more than $2 billion invested in Australia’s battery energy storage systems (BESS) industry in Q1 2025 — a hidden threat is burning.
These systems are considered crucial for meeting renewable energy targets and strengthening reliability across industries, including mining operators.
By integrating BESS with renewable energy sources such as solar, mines are able to achieve greater energy independence and lower their reliance on fossil fuels.
However, with battery fires and thermal runway events increasing worldwide, fire and emergency services are being met with more challenges, as reported by the NSW Fire and Rescue team.
In 2024, a report from Pragmatic Research, funded by waste and recycling bodies, estimated there are 10,000 to 20,000 battery-related fires in the sector per year.
Earlier this year, a major fire occurred at the Moss Landing battery storage facility in California, US. The 300 megawatt battery array fire destroyed roughly 80% of the facility and burned for days.
More incidents like this have raised questions about the safety of energy storage systems and in response, commercial property insurance firm FM’s Operations Chief Engineer, Mike Hunneyball, has outlined six risk mitigation strategies to help mining operators deploy BESS safely.
“Adopting lithium-ion BESS offers substantial benefits, helping mining operators significantly reduce costs, emissions, and reliance on diesel generators,” Hunneyball says.
“Yet, the inherent risks posed by battery fires and thermal runaway events demand rigorous and proactive management strategies.”
FM says positioning BESS outside and away from critical infrastructure, high-risk areas, and densely populated locations is crucial.
Hunneyball says mining operators should assess the layout of the deployment sites to reduce the risk of fires spreading to essential equipment or personnel areas, protecting workers and minimising potential downtime.
In addition, constructing battery enclosures using fire-resistant materials help contain fires and limit their potential spread.
Non-combustible materials like concrete, steel, and brick can withstand high temperatures, provide valuable additional response time, and prevent collateral damage.
Other mitigation strategies include separation and ventilation, fire protection systems, emergency response and redundancy, as well as ongoing maintenance and upgrades.
FM’s research shows these steps can reduce the severity of incidents, as well as protect personnel and assets.
According to Shell (LSE:SHEL), BESS plays a vital role in Australia’s journey to a lower-carbon future.
BESS’s come in various sizes and shapes, ranging from smaller on-site batteries that respond to peak demand, increase grid resilience, and provide backup power when necessary to larger grid-scale systems that combine renewable energy generation with large batteries.
By providing vital grid stability services , battery technology is accelerating the uptake of renewable generation and playing an essential role in the decarbonisation of the energy sector.
The Australian Renewable Energy Agency (ARENA) backed eight grid-scale batteries with 2 gigawatt capacity worth $2.7 billion across the National Electricity Market, which, once built, will increase the grid forming battery storage capacity across the grid tenfold, as reported by Shell.
Write to Aaliyah Rogan at Mining.com.au
Images: FM Global
