Fully charged: plugged in to the risks of the EV revolution

Despite economic headwinds that have put pressure on the automotive sector, global sales of electric vehicles (EVs) have continued to break records as electric models become increasingly affordable. Sales exceeded 17 million globally in 2024, according to the International Energy Agency [1], putting EVs’ share of the global car market above 20% for the first time. The agency has previously said that as many as 200 million EVs could be on our roads by 2030 [2], albeit this number is dependent on certain scenarios.

The rise of the EV economy, and the batteries that are powering it, is playing a key role in helping governments and industries reach their decarbonization targets as a cleaner transport solution. Yet it also brings a host of challenges that have only become truly evident after deployment, ranging from high-profile fire incidents on land and at sea, to cyber vulnerabilities, to complex disposal issues. 

EV fires can burn hotter and reignite – making them difficult to control with traditional methods. Emergency services have had to adapt quickly. Fire brigades have adopted new tools, such as thermal cameras, fire blankets and submerged containment tanks. At the same time, police and first responders have implemented new protocols for isolating vehicles and managing post-crash battery hazards.

Given the growing number of unintended consequences, risk experts continually scan the horizon for vulnerabilities. One of the most pressing may be EV charging infrastructure. As these units proliferate across cities, highways and commercial sites, they introduce a new layer of complexity that is only beginning to emerge.

"The riskiest moment in an EV’s life concerning battery risk isn’t driving – it’s charging," says Rafael Rioboo, Regional Head of Risk Consulting for Allianz Commercial’s Iberia region.

Rioboo explains that strained EV chargers can overheat or short-circuit, potentially causing damage to the vehicle’s battery system. In some cases, this can trigger thermal runaway – a condition in which a lithium-ion battery cell overheats and enters a self-sustaining cycle of rising temperature. The heat causes internal reactions that generate even more heat – rapidly spiraling out of control.

"Thermal runaway doesn’t wait for you to act – it ignites, escalates and overwhelms," says Rioboo. "It can lead to fires, explosions and the release of heavy metals and toxic chemicals like carbon monoxide and hydrogen cyanide, posing serious risks to people, property and emergency responders."

As an engineer, Ralph Schweda notes that regulation still lags deployment, though the situation has improved markedly: "At the beginning, it was the Wild West when it came to installing EV chargers. Now we are finally laying down the ground rules."

Schweda, a Senior Risk Consultant at Allianz Commercial with a background in complex industrial risks, notes that a charger can still be an ignition point, a liability, or both if it is not properly installed or grounded. Many businesses have rushed to install EV chargers, viewing them as a market opportunity. However, EVs are still an emerging technology, and building codes can struggle to keep pace.

"Cyber threats, vandalism, salt corrosion – EV stations are more than just plugs; they’re risk magnets, so caution needs to be exercised in their installation," says Schweda.

By the time Randall Lund was interviewed, the Morning Midas had been burning for nine days. The Mexico-bound cargo ship caught fire on June 3 and sank on June 23, 2025, in the North Pacific near Alaska. Onboard were 3,000 vehicles, including around 70 fully electric and 700 hybrid electric cars that likely intensified the fire. Industry losses are estimated in the hundreds of millions of dollars.

Did a charging station cause the fire? "Unlikely," says Captain Lund, a Senior Marine Risk Consultant at Allianz Commercial. "Then again, it's hard to investigate a fire when the evidence has burned to ash – or sunk to the bottom of the ocean."

Establishing the exact causation of fires on vessels whose cargos have included EVs is challenging. One notable incident in 2010 – the origin of the fire on the Pearl of Scandinavia  which was traveling from Oslo to Copenhagen, was traced to the battery pack in the rear end of an electric car that was being charged during the voyage, according to the Danish Institute of Fire and Security Technology [7].  The car was originally a conventional vehicle with a combustion engine but had been rebuilt by the owner to be powered by electricity. Fortunately, the onboard sprinkler system did its job, and no one was harmed.

Other high-profile fire incidents, including the Felicity Ace and the Fremantle Highway, also had EVs on board, but determining causality has proven elusive. Typically, when EVs are implicated in a fire incident, the more likely culprits are arcing in the braking system or failures to follow battery-disconnect protocols.

Regardless of the cause, EV batteries store a large amount of energy in a compact space. If that energy is suddenly released, the resulting fire can burn intensely and be challenging to control.

Lund notes a growing trend among ferry operators, particularly in Europe, to install onboard charging stations for customer use during trips. While it makes sense, a concern is whether consistent safety standards are being applied and whether operators are fully aware of the risks.

"In this business, poor workmanship today can become a multimillion-euro claim tomorrow," Lund warns.

Looking ahead, Ciro Mirengo views grid overload as one of the most underappreciated risks associated with EV chargers. "It’s not just a cable and a plug," says the Senior Liability Risk Consultant at Allianz Commercial. "An EV charger is a node on the grid, a fire risk and a cyber target."

These are all real vulnerabilities, but one is often overlooked: "We’re plugging cutting-edge technology into century-old infrastructure and not always asking whether the grid can actually cope."

This issue won’t remain theoretical for long. As EV adoption climbs and millions of drivers plug in after work – just as solar output drops – the risk of overload grows exponentially. 

"Our power grids were not originally designed or tested for this kind of simultaneous load," warns Mirengo. "Unless we invest in smarter, more resilient systems, while fostering close collaboration among all stakeholders, as well as interested parties, we could be setting ourselves up for a cascade of failures."