The NSW State Coroner on Wednesday announced the probe into the fires, which have been happening at a rate of five per week in the state.
Two people died in one incident in March after a battery exploded and caused a blaze north of Sydney.
As well as being found in mobility devices like e-bikes and e-scooters, rechargeable lithium-ion batteries are commonly found in cordless vacuums, electric toothbrushes and shavers, and power tools.
Authorities are worried Christmas gift-giving could fuel the issue further if presents containing low-quality batteries flood the market.
Fire and Rescue NSW said battery fires had caused 876 evacuations state-wide in 2024 so far, and resulted in 26 injuries.
Several fatal fires were already under investigation ahead of the planned inquest, Coroner Teresa O'Sullivan said.
"My role as the state coroner is to investigate sudden and explained deaths, fires, and explosions, and recommend changes that could stop tragic mistakes from being repeated," she said.
"We have seen a recent trend of fires being caused by items containing lithium-ion batteries, including e-bikes and e-scooters ... sadly, these fires have resulted in lives being lost."
From February next year, products sold in NSW must meet internationally accepted standards and be appropriately tested and certified before they enter the market.
New testing, certification and labelling requirements will also be introduced, in a staged process.
Poor-quality or improperly charged lithium-ion batteries are susceptible to uncontrolled thermal runaway events, which occur when the temperature in lithium-ion batteries increases faster than the energy can be dispersed to its surroundings.
The high temperature causes the battery to decompose, creating more heat and ultimately leading to an explosion of flammable gas.
The disposal of lithium-ion batteries has also caused havoc for waste companies, with rubbish and recycling trucks sparking fires when crushing wrongly disposed-of batteries.
28°C