E-bikes on display racks in a bike shop workshop with a removed battery on the workbench

E-Bike Shops and Bike Retailers: Lithium Battery Fire Safety From Showroom to Workshop

A busy bike shop now handles more lithium-ion batteries in a week than most households will own in a lifetime. Customer bikes arrive with batteries of unknown history, new stock sits boxed in the back room, and demo fleets charge every night.

Early one September morning in 2025, Fire and Rescue NSW received numerous Triple Zero calls about flames and smoke coming from a shopfront on Regent Street, Chippendale, believed to be an e-bike business storing lithium-ion batteries. Twelve fire trucks and around 40 firefighters worked for about 40 minutes to contain the fire and stop it spreading to six levels of residential units above. Everyone was evacuated safely and no injuries were reported (Fire and Rescue NSW, 2025b).

This guide is for bike shop owners, e-bike retailers, repairers and hire operators: the NSW rules, the hazards specific to retail and workshops, and a practical plan for each part of the shop.

Why the bike shop is a concentrated risk

Fire and Rescue NSW data released in February 2025 recorded 193 fires caused by e-micromobility vehicles between 2022 and early 2025, rising from 23 in 2022 to 67 in 2023 and 93 in 2024. NSW Fair Trading described this as more than one fire per week across the state, and the Fire and Rescue NSW Commissioner noted that three people had died in the previous 12 months in fires involving lithium-ion battery powered bikes (NSW Government, 2025).

Nationally, the ACCC reported that since 2017 it had received 231 product safety reports relating to lithium-ion batteries and had been notified of 23 recalls affecting an estimated 89,000 products. Its consumer survey also found that 54 per cent of respondents used aftermarket chargers (Australian Competition and Consumer Commission [ACCC], 2023). The ACCC has since named e-micromobility safety as the first of its product safety priorities for 2026 to 27, with lithium-ion batteries flagged as a continuing area of interest (Rose et al., 2026).

A retail and repair business sees the full spread of that risk in one building:

  • Customer bikes of unknown history. A bike that has been dropped, submerged, left in a hot car or charged on the wrong charger can arrive looking perfectly normal.
  • Modified and home-built packs. Fire and Rescue NSW has specifically warned the public about the dangers of modifying or repairing e-bikes and e-scooters, after a run of fires that included an e-scooter battery explosion where an incorrect charger was believed to have been used on a modified scooter, and a home-made e-bike battery pack explosion (Fire and Rescue NSW, 2025a).
  • Bulk storage. Boxed stock, spare batteries and trade-ins can add up to a significant amount of stored energy, often in a back room with limited ventilation.
  • Overnight charging. Demo and repaired bikes are often charged after hours, when nobody is there to notice warning signs.

What NSW retailers must now do

NSW introduced mandatory safety standards for e-micromobility products in stages. Stage one safety standards took effect on 1 February 2025, the Information Standard on 19 February 2025, mandatory testing and certification in August 2025 and mandatory labelling in February 2026. Businesses selling non-compliant vehicles face penalties of up to $825,000, and breaches of the Information Standard can attract penalties of up to $5,500 each (NSW Government, 2025).

For a bike shop, the practical obligations include the following (NSW Fair Trading, 2026a, 2026b):

  • Certified and marked products. E-bikes, their batteries and chargers must comply with listed standards (for example EN 15194 or UL 2849 for e-bikes, and EN 50604-1, IEC 62133-2 or UL 2271 for e-bike batteries). Each of the vehicle, battery and charger needs its own certificate of approval and safety approval mark.
  • Marks on the product, not just the box. The safety approval mark must be legible and permanent on the product itself, and must appear on every website where the vehicle is listed for sale.
  • Information at point of sale. Customers must receive product details and safety information for the specific vehicle they buy or hire, either physically with the manual or digitally.
  • Battery and charger swaps. NSW Fair Trading states that if you change the battery or charger, you have changed the vehicle model and it is no longer approved for sale in NSW. This matters for upsells, trade-ins and repairs that involve replacement packs.
  • Former hire bikes. A former hire vehicle must be tested, certified and marked before it is sold in NSW, and from 1 February 2026 hire businesses must only purchase certified and marked vehicles.

Product compliance reduces poor quality stock, but it does not remove the risk from customer bikes, damaged packs or storing and charging many batteries in one place.

Your duties as an employer

A bike shop is a workplace, and the business owner is a person conducting a business or undertaking (PCBU). SafeWork NSW expects PCBUs to assess lithium-ion battery risks, develop safe work procedures covering storage, charging, transport and disposal, train workers, provide suitable PPE and put emergency response plans in place. Damaged batteries should be isolated from other materials, stored in suitable containers or a fire-resistant bag designed for battery storage, and handled under a clear emergency plan (SafeWork NSW, 2026).

SafeWork NSW also reminds businesses that an uncontrolled fire or explosion is a notifiable incident even if nobody is hurt, and must be reported immediately on 13 10 50 (SafeWork NSW, 2026). WorkSafe Victoria adds workshop-specific advice: provide a dedicated charging area separate from where people work, keep charging equipment away from exits and evacuation routes, use insulated tools when working on lithium-ion batteries, and be aware that some sprinkler systems may not be capable of suppressing a large lithium-ion battery fire (WorkSafe Victoria, 2023).

A zone-by-zone plan for the shop

Receiving and intake

  • Ask every customer the same intake questions: has the bike been dropped, crashed, submerged or modified, and what charger is used?
  • Inspect the battery before the bike goes to the workshop floor. Look for swelling, cracks, leaks, heat, burnt plastic smells or hissing. The ACCC advises stopping use immediately if any of these signs are present (ACCC, 2023).
  • Tag suspect batteries clearly and move them straight to a quarantine point rather than the general repair queue.

Workshop and repair bench

  • Remove the battery before mechanical work wherever the design allows, and store it away from the bench.
  • Use insulated tools and appropriate PPE for any work near battery terminals (WorkSafe Victoria, 2023).
  • Do not open, rebuild or re-cell battery packs unless your business is set up and qualified to do so. Remember that replacing a battery or charger changes the approved model in NSW (NSW Fair Trading, 2026b).
  • Keep a containment blanket and a battery containment bag within reach of the bench, not locked in a cupboard.

Charging area

  • Set up one dedicated charging area away from exits, stock and people (WorkSafe Victoria, 2023).
  • Use only the original or approved charger for each battery, and do not leave batteries charging unattended or for long periods (SafeWork NSW, 2026).
  • Avoid overnight charging where you can. If it cannot be avoided, use timers so charging ends before close of business, and make sure smoke detection covers the area.

Stock room and showroom

  • Store batteries in a cool, dry place away from direct sunlight, heat sources and flammable materials (SafeWork NSW, 2026).
  • Separate spare batteries from cardboard packaging and other combustibles where practical, and avoid stacking stock against walls shared with neighbours or residences.
  • Do not leave display bikes sitting in a hot, sunny shop window.
  • Check that online listings carry the safety approval mark and that point-of-sale safety information is ready for every model on the floor (NSW Fair Trading, 2026a, 2026b).

Quarantine and disposal

  • Set aside a quarantine spot for damaged, recalled or suspect batteries, ideally outside the main building or in a separated area with nothing combustible nearby.
  • Keep each suspect battery in its own fire-resistant containment bag until it is collected for recycling.
  • Never put lithium-ion batteries in general waste or recycling bins (ACCC, 2023; SafeWork NSW, 2026). Use a battery recycling service suited to the size of packs you handle.

Train the team, not just the manager

Equipment only helps if staff know where it is and when to use it. Every person on the floor, including casual and weekend staff, should be able to answer three questions: what are the warning signs of a failing battery, where is the nearest blanket and containment bag, and when do we stop and evacuate? Run a short walk-through when new staff start and whenever the layout changes.

Your emergency plan should be explicit that people come first. SafeWork NSW advises that in the event of a battery fire or explosion, workers should not attempt to put it out, should evacuate the area and should call 000 immediately (SafeWork NSW, 2026). Containment equipment is for early, controlled situations, such as isolating a battery that is heating or smoking before it ignites, and only where it can be done without putting anyone at risk.

Equipment that fits a bike shop

For most retailers and repairers, a practical kit covers the bench, the charging area and the quarantine point:

Quick checklist for shop owners

  1. Every e-bike, battery and charger you sell is certified and carries its safety approval mark.
  2. Online listings show the mark, and point-of-sale safety information is ready for each model.
  3. Intake questions and battery inspections happen before a bike reaches the workshop.
  4. There is one dedicated charging area, away from exits and stock, with no unattended long charging.
  5. Suspect batteries go straight into a containment bag at a quarantine point.
  6. A blanket and containment bag sit within reach of each bench and charging rack.
  7. All staff have been trained and know that people come first.
  8. Your emergency plan covers evacuation, calling 000 and notifying SafeWork on 13 10 50.

A final safety note

Lithium-ion battery fires develop quickly and produce toxic smoke. If a battery is on fire or you are not sure it is safe to approach, get everyone out, close the door behind you if you can, and call 000. Fire safety equipment supports a good plan. It never replaces getting people to safety.

References

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