why loose lithium batteries aren’t allowed in hold luggage, but electronics containing lithium batteries are allowed
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Lithium batteries are very energy dense. If they are punctured or over heat due to a short circuit, they can catch on fire or explode. You may have seen videos of this online.
A device that contains a lithium battery is generally designed to avoid the above conditions. It physically protects the pack from being ruptured.
A loose battery is more vulnerable to these conditions.
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