One lithium-ion battery connection

MORE COVERAGE HIGHER PREMIUMS

Chubb Insurance earlier this year, made a $50 million announcement. It concerned the company’s entry into the lithium-ion battery insurance market.

The lithium-related product offered by Chubb is focused on the delicate task of moving and storage of lithium-ion batteries. Chubb will, through its facilities in London, provide up to $50 million in coverage for the elements related to lithium batteries which are being transported and/or stored.

PROBLEMS STILL EXIST

On October 3, 2024, the Los Angeles Times reported a fire loss involving lithium-ion batteries being transported and resulted in freeway access to the Port of Los Angeles being hampered.

In July of this year another transportation fire was started by a lithium-ion battery fire:

A burning truck carrying lithium-ion batteries shut down a Calif. interstate for over 40 hours, I-15 near Baker was shut down in what one driver called, “traffic apocalypse from hell.”

REPORT FOR INSURANCE COMPANIES:

In October of 2017, a report was issued by the United States Department of Transportation, specifically for The National Highway Traffic Safety Administration, and it revealed several issues ignored by or totally missed by lithium-ion battery manufacturers:

Li-ion batteries are complex systems built to manage and control the electrochemical reactions in Li-ion cells to safely and efficiently receive, store, and discharge electrical energy while preventing or mitigating failure causes.

The results of this investigation identified seven primary categories of external causes contributing to failure of Li-ion battery cells: 

1. “ External electrical causes such as external electrical short, overcharging, or over-discharging. 

2.  External thermal causes such as exposure to high temperatures or charging at cold temperatures.

3.  External mechanical causes, which include excessive shock, impact, compression (crush), or penetration. 

4. External chemical contamination including packaging penetration by corrosive and aggressive agents and contamination of internal components by water, saltwater, or corrosive agents. 

5. Service-induced stress and aging causes such as excess cycling that lead to electrochemical component breakdown, fracture and crack growth

6. Cumulative abuse and service causes in which combinations of electrical, mechanical, and thermal abuse (summarized above) and normal charge/discharge duty cycles cause damage to initiate and grow to the point of failure.

7.   Errors in design, manufacturing, operation, and maintenance, which induce electrical, mechanical, and thermal abuse causes.

A FINAL WORD CONCERNING THE BATTERIES:

Li-ion batteries contain or can produce, via decomposition, reactions initiated by failure mechanisms, chemicals that can pose significant flammability, asphyxiation, material compatibility, or toxicity hazards to vehicle passengers (such as an electric car) and first respondents. These hazardous conditions could be realized when the integrity of a battery casing is compromised, causing the release of volatile, flammable, and toxic chemicals from the battery.

YOUR INSURANCE COMPANY’S INVOLVEMENT:

We have already identified Chubb Insurance, and Allianz as being direct contributors to the continued manufacturing of lithium-ion batteries that are terribly unsafe.  A representative from Gallagher Reinsurance stated that from 2017 until 2022, 25,000 electrical related fires took place in this country which is just too many to turn your back on.

HOW ITS DONE:

A very devious method is utilized by Insurance Companys to forward funds to the lithium-ion manufacturers. An Insurance Company will purchase large amounts of stock from their financial advisers / investors. Then when a vote comes up at the financial advisor’s office concerning an investment in energy companies, the insurance companies opinion, which is centered around protecting their investment is taken seriously, and usually in support of buying another lithium mine.  

TRENDS:

The most despicable element in this whole process is that the insurance companies who provide coverage for the parties damaged by the exploding batteries are not seeking recovery from the responsible lithium manufacturer. Could it be due to the fact their course of action is directed by their financial investment company, who just may own an interest in that insurance company, and they do not want to start a nasty trend of paying huge claims?

Norman Lambe

nwlambe@gmail.com