Global Battery System Failure Rates Dropped Since 2018
The failure rate for lithium-ion energy storage systems fell by 98% between 2018 and 2025 as new safety standards emerged.
Updated on Oct. 13, 2026 in Electric Vehicles
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Global failure rates for lithium-ion battery energy storage systems saw a 98% decline between 2018 and 2025, with a 50% drop occurring from 2024 to 2025 alone. Approximately 93% of global battery safety incidents recorded during this period resulted in no injuries or fatalities.
Why it matters
Older battery systems built prior to 2021, which represent 3% of global capacity, experience higher failure rates than modern units designed under contemporary safety codes. Enhanced design practices and rigorous oversight are reducing risks as industry standards evolve.
Stationary battery systems now maintain annual failure rates between 0.04% and 0.14%, comparable to the 0.1% failure rate for oil-filled electrical transformers. Only 3% of global energy storage capacity remains in facilities commissioned prior to 2021.
The players
National Fire Protection Association
This is a global self-funded nonprofit organization devoted to eliminating death, injury, property, and economic loss due to fire, electrical, and related hazards.
The details
Recent safety efforts focus on retrofitting existing facilities with flammable gas detectors and improved ventilation systems to mitigate thermal runaway risks. Fire walls and propagation-prevention measures are increasingly utilized to stop fire spread within indoor battery arrays, such as those seen in the 300-MW Moss Landing facility.
Timeline
April 2019: An explosion occurred at an Arizona Public Service facility.
2018-2025: The global failure rate for battery systems fell by 98%.
January 2025: A thermal runaway event destroyed the 300-MW battery array at the Moss Landing facility.
January 2026: New York began requiring developers to pay for independent technical reviews of exemption applications.
Fall 2026: The National Fire Protection Association plans to replace NFPA 855 with NFPA 800.
Roadmap
The transition from the NFPA 855 safety standard to the upcoming NFPA 800 reflects a broader industry movement toward standardized, stricter engineering requirements for large-scale energy storage. This shift forces legacy facilities to adopt modern safety features to remain competitive and compliant with changing global regulations.
Consumers and grid users benefit from increased system reliability as newer facilities undergo more rigorous technical reviews. These safety improvements help prevent costly facility outages that can impact local power distribution stability.
The takeaway
The drastic reduction in battery failure rates highlights the critical importance of keeping energy storage infrastructure updated with the latest safety designs. Operators should prioritize retrofitting older units with modern gas detection and ventilation to minimize risk.
Further reading
Learn more about the latest innovations and safety developments in Electric Vehicles.
Source note: This article includes information reported by Utility Dive.
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