Taking Charge: Effective Management of Lithium-ion Battery Recalls

Transcription

1 Taking Charge: Effective Management of Lithium-ion Battery Recalls

2 Background Lithium-ion batteries have become an indispensable part of most consumers everyday lives. From consumer products such as cell phones and tablets to medical devices and e-cigarettes, the technology has provided convenience and usefulness. But when a defect occurs, the complex regulations that govern them make recall execution difficult. 2

3 Compliance Complications With almost any lithium-ion battery recall, the issue crosses multiple regulatory agencies that mandate certain procedures from shipping to disposal even when the recall is limited to one country. In the United States, a recall may involve the Department of Transportation s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA), the Environmental Protection Agency (EPA), the Consumer Product Safety Commission (CPSC), and the Food and Drug Administration (FDA). regulatory uncertainty remains. In the fall of 2016, the PHMSA submitted a proposal to more closely align its rules for transporting hazardous materials with international regulations. For lithium batteries, this included the adoption of a new label and amendments to the requirements for certain small cells and batteries. When a recall crosses international borders, the complexity is compounded. Internationally, organizations involved include the United Nations Sub-Committee of Experts on the Transport of Dangerous Goods, the International Maritime Dangerous Goods Code, the International Civil Aviation Organization (ICAO), and the International Air Transport Association (IATA). But in January 2017, it withdrew the final rule in response to a regulatory freeze by President Donald Trump. Since then it has clarified that while it decides whether or not to adopt the new standards, it will not take enforcement action against carriers operating under either the previous rules or the new pending guidance In addition to the sheer number of regulatory agencies involved, the mandates they enforce are constantly shifting in response to new technology and information. In some cases, In addition to the sheer number of regulatory agencies involved, the mandates they enforce are constantly shifting in response to new technology and information. 3

4 From Testing to Transport Lithium-ion batteries must undergo rigorous safety tests. But even under normal circumstances, they can cause short circuits or overheat and lead to fires, which are difficult to extinguish. While there are exceptions for small sizes, most are classified as hazardous and bound by specific transportation requirements across multiple regulatory bodies. In addition, carriers have their own individual requirements. In early 2016, the ICAO prohibited cargo shipments of lithium-ion batteries aboard passenger aircraft, while still allowing them on cargo planes. President Barack Obama sought to enforce the ban on domestic flights within the U.S., but Trump s executive order has also stalled implementation of this rule. The International Air Transport Association (IATA) guidance states that lithium batteries that have been identified as defective for safety reasons cannot be transported by air. However, a defect that does not involve an increased hazard, such as failure to adequately charge, and products being recalled for an issue unrelated to the battery they contain, are considered acceptable for air transportation. Ground transportation may be an option even for damaged batteries, however any product deemed liable to rapidly disassemble; dangerously react; produce a flame; or emit toxic, corrosive, or flammable gases or vapors under normal conditions can t be transported without special permission from the consigning country. Even in instances where they can be shipped, they require intricate packaging with fireproof lining, along with specialized tape and specific labels that must be placed with precision. Regardless of the method of transport, failing to comply with these requirements can result in hefty fines from global regulators which can also mean negative headlines. 4

5 Design Downfalls Depending on the type of product, batteries may be standalone, packed alongside the equipment it powers, or installed in the equipment itself. Increasingly, products with built-in batteries are designed to make it difficult or impossible for consumers to remove the batteries they contain. The days of take out the battery, wait a minute, and replace it are fading fast. These designs do have a number of advantages. They allow for a slimmer, sleeker appearance. The batteries are better protected from dust, humidity, and other elements that could affect their performance. They allow for water resistant design. But there are disadvantages as well, perhaps none greater than when a recall is issued. If a faulty battery is separate from the unit or can be removed, in some cases, the recall remedy may be to simply ship a replacement directly to consumers without the level of specialized packaging required for batteries with a potential safety issue and instruct them to dispose of the faulty battery locally. Removable batteries can also be separated from the rest of the product during destruction, reducing the costs associated with hazardous waste disposal. There are fewer options for built-in batteries, making recalls more complex and costly. 5

6 Playing with Fire: The Danger of Unpreparedness Like so many technological advances, lithium-ion batteries come with both exciting possibilities and considerable drawbacks. They allow for innovations that resonate with consumers to the point where many resist departing with a new gadget even when an urgent safety recall is issued. But with a high level of complexity and rapidly shifting regulatory requirements, lithium-ion batteries present one of the greatest challenges when it comes to recalls. In this environment, it is crucial to prepare in advance. Regulators, the media, and the public expect manufacturers to move quickly when it comes to defects that could cause major property damage and inflict serious injuries. Manufacturers must consider: How quickly they could secure the necessary materials for shipping recalled batteries How they would go about notifying their customers and answering a potential surge of urgent questions How they would manage the extraordinary manpower required to collect the affected product and send replacements or reimbursements How they would manage the data and documentation required for regulatory reporting The challenges are immense, and in most cases, they can t be undertaken alone. Companies with a robust recall plan in place are best prepared to meet these challenges head on and emerge from the recall with their brand reputation intact. StericycleExpertSolutions.com Info@StericycleExpertSolutions.com Copyright 2017 Stericycle. All rights reserved. Copyright 2017 Stericycle. All rights