NSW is looking to combat the fastest-growing cause of fires by implementing new standards for lithium-ion batteries.
The batteries used in e-bikes and e-scooters caused 90 fires in the state across 2022 and 2023, with better testing and certification to be required.
Products that don't meet the new standards could be hit with $825,000 fines for corporations and $82,500 for individuals.
NSW Fair Trading is also running a consumer education campaign, showing unsafe charging practices and other ways that are contributing to the surge in fires.
Fair Trading Minister Anoulack Chanthivong says the rise in lithium-ion battery fires was "alarming" and requires swift action from the government.
"The reality is devices like e-bikes are here to stay … imposing higher standards means that consumers will have access to the products they want with the confidence that they're safe," he said.
"As the popularity of lithium-ion batteries grows, we can't afford to let them continue to go unregulated in our community … failing to act poses a huge risk to lives and property in NSW."
An industry roundtable held last month will shape the rules to be made by NSW Fair Trading.
"The ongoing cost to property and potential loss of life from lithium-ion battery fires outweighs any compliance cost imposed on industry by these new standards," Acting NSW Fair Trading commissioner Petrina Casey said.
"In order to maintain consumer safety across Australia, NSW Fair Trading will work with other jurisdictions to encourage certification requirements nationally."
