Lithium Battery Fire Compensation: SK Battery Pays $31 Million

A Georgia recycling facility operator sued a battery manufacturer for mishandling lithium-ion batteries that led to a fire at a recycling facility, resulting in a $31 million judgment. Metro Site Fabricators filed a lawsuit against SK Battery America for mishandling the batteries, and the two sides eventually settled.

SK Battery America produces lithium-ion batteries at its plant in Georgia. After investigators investigated, they found a fire incident that completely destroyed the recycling facility, which occurred after hundreds of lithium-ion batteries were sent to the recycling facility, and the batteries rubbed against each other to trigger a thermal runaway reaction.

Scott Ledford, director of Metro Site Fabricators, noted that the batteries were carelessly disposed of at the plant, which was not qualified to handle them. SK Battery is a subsidiary of South Korean conglomerate SK Group, which did not admit liability in the settlement but agreed to pay Metro Site $20 million in punitive damages and $11 in infringement claims and damages, according to the Atlanta Journal-Constitution.

Ledford said it was because of the way the battery arrived at the site that they were able to determine which company had left it at the recycling facility. The batteries were packed in lithium-ion bags, indicating they were produced at SK Battery's Georgia plant. He noted that in general, it is difficult to determine the source of the battery, which means it is often difficult to find compensation.

Although SK Battery did not admit liability, Ledford made sure the settlement included a provision that he could discuss the incident publicly. The move is not intended to criticize SK Battery, but rather to help other plants address the physics of the fire as well as the legal implications, and lays out the actions Ledford and his lawyers have taken since identifying the product they claim caused the fire.