Massive Fire at Camden Recycling Facility Raises Alarm About Lithium-Ion Battery Risks

April 01, 2025

A massive fire broke out at a metal recycling facility in New Jersey. According to the facility, the blaze was fueled by a lithium-ion battery that was mixed in with scrap metal waste and wrongfully delivered, as the facility does not collect or recycle them. The fire burned through the night, releasing toxic smoke and leaving local residents and officials to question the handling of hazardous materials in the area.

Fire Details: A Quick Escalation

The fire quickly escalated to a four-alarm disaster that required the response of 15-20 fire companies. Fire crews battled the blaze for several hours, and the smoke was so intense that it was visible from 15 miles away, prompting local officials to issue a voluntary shelter-in-place order for affected neighborhoods.

The Dangers of Lithium-Ion Batteries

According to the National Fire Protection Association, lithium-ion battery fires can occur for various reasons, including damage, crushing, overcharging, exposure to water or extreme temperatures, and other factors. They are found in many consumer items, from smartphones and laptops to appliances and electric vehicles. The recycling facility explicitly stated that it does not recycle lithium-ion batteries and has strict policies against accepting them. However, this incident has raised significant concerns about the risks associated with the improper disposal of these batteries, a growing issue across the recycling industry.

Community Impact: A Traumatic Experience

The facility is located close to neighborhoods, and local residents have expressed feelings of trauma and distress following the fire. Over 100 hotel rooms and meals were provided to affected residents, but the emotional and physical toll remains significant. Even after the fire is put out and the toxic air clears, heavy particles can settle and residents worry about the long-term health implications of exposure to pollutants. Reports of respiratory ailments, headaches, and fatigue have surfaced among those living near the facility, highlighting the urgent need for health monitoring and community wellness checks.

Calls for Action: Regulation Needed

In light of this incident, federal and state lawmakers have been called on to take immediate action to regulate lithium-ion batteries. The company points to the lack of adequate disposal methods for these non-recyclable items, emphasizing that manufacturers and users must be held accountable.

Insurance Considerations: Risks for Agents and Businesses

The repercussions of this fire extend beyond the immediate community concerns. For insurance agents, recyclers, and manufacturers, understanding the risks associated with lithium-ion batteries and the potential for pollution liability claims is crucial. With the increasing prevalence of these batteries in consumer products, the need for proper environmental insurance and risk management has never been more urgent.

The Camden junkyard fire serves as a stark reminder of the risks posed by lithium-ion batteries and the pressing need for improved safety regulations and environmental insurance. As the community grapples with the aftermath, it is crucial for insurance professionals and affected businesses to acknowledge these risks and take proactive measures to mitigate them.