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* Battery technology part of weight-reducing design of 787

* Boeing says overcharging can lead to battery fire

* Boeing designed 787 to prevent overcharging, contain fires

* Plane maker says battery was the correct choice

By Deepa Seetharaman and Alwyn Scott

DETROIT/NEW YORK, Jan 9 (Reuters) – An electrical fire on

Boeing’s new 787 Dreamliner is drawing renewed scrutiny

for lithium-ion batteries, an increasingly important component

in planes and hybrid cars.

A Japan Airlines 787 experienced a battery fire

while parked on the ground in Boston on Monday, causing

substantial damage in an equipment bay. While the plane is

designed to contain the smoke from such a fire in-flight,

because it was on the ground the smoke entered the cabin.

The use of the new battery technology is among the

cost-saving features of the 787, which Boeing says burns 20

percent less fuel than rival jets using older technology.

Boeing used electrical systems extensively on the 787

instead of traditional hydraulic equipment – a change that

reduced the 787’s weight but added to its complexity.

Lithium-ion batteries can catch fire if they are

overcharged, and once alight, they are difficult to extinguish

because the chemicals produce oxygen, Boeing’s chief engineer

for the 787, Mike Sinnett, said on a conference call with

reporters Wednesday.

Engineers designed multiple onboard systems to prevent

overcharging, contain a battery fire and siphon smoke away

before it reaches the cabin, Sinnett said.

He said a lithium-ion battery was not the only choice of

battery, but “it was the right choice” and “knowing what I know

now, I’d make the same choice now.”

Sinnett wouldn’t discuss specifics of the Japan Airlines

fire, which is being investigated by the National Transportation

Safety Board, and it wasn’t known whether there was a fault with

the battery, which was made by GS Yuasa Corp, which has

said it is investigating. Sinnett said Boeing is

not considering using different battery technology.

The battery that caught fire was part of an auxiliary power

unit designed to provide electricity when the plane is on the

ground. The battery is about twice as large as a car battery and

it has been extensively tested, both in the lab and in

operation. “We’ve got 1.3 million operating hours on these

battery cells in flight with no issues,” Sinnett said.

TEST AND RE-TEST

A similar challenge confronts automakers and other users

over lithium ion batteries, which are used in laptops and other

electronics.

“It is always difficult to predict the level of safety

precaution needed for new technology,” said Menahem Anderman, a

battery consultant who worked on the Boeing 777 battery systems

when he was at Acme Electric Corp, in an email.

“One of the challenging design criteria that automakers are

struggling with is whether it is necessary to ensure that if a

single cell catches fire, the fire does not propagate to other

cells,” he said.

While Dreamliner passengers may not realize there is a

lithium-ion battery inside the plane, drivers of electric cars

do. The auto industry has been increasingly veering toward using

lithium-ion batteries rather than the cheaper, but heavier

nickel-metal hydride battery used by Toyota Motor Corp

in its top-selling Prius.

General Motors Co, the largest U.S. automaker, uses a

lithium-ion battery in its Chevrolet Volt plug-in hybrid, while

its smaller U.S. rival Ford Motor Co uses the technology

in its green cars, including the recently launched C-Max hybrid.

The technology is favored in the latest generation of such

cars for the same reason plane makers are keen to use it — the

batteries can be made lighter, smaller and in a way that retains

capacity longer. Lithium-ion batteries are about half the weight

of nickel-metal hydride batteries.

In 2011, a lithium-ion battery pack in a Volt caught fire

three weeks after a U.S. safety regulators conducted a crash

test. But after a two-month investigation, the National Highway

Traffic Safety Administration determined that the Volt and other

electric vehicles posed no greater risk for a fire than

gasoline-powered vehicles.

Lithium-ion battery maker A123 Systems was forced to recall

battery packs made for Fisker Automotive’s plug-in hybrid sports

car, the Karma, last year. A123, which ultimately went bankrupt,

citing a manufacturing defect for the problems in the batteries.

“Because they’re new and different, a fire in an electric

car gets a lot more attention than in a gas car,” said Tom Gage,

a battery expert whose company EV Grid works on ways to manage

the charging of electric cars. “The standard is, are they as

safe as the gas tank? That’s certainly the target they have to

strive for.”

He said there probably wasn’t enough data to determine

their comparable safety record.

GM is exploiting the technology aggressively in the Volt,

having done 100 million miles of drive testing by the CEO’s

account. Chief Executive Dan Akerson said Wednesday that GM

tests the batteries “like you wouldn’t believe” and was

confident in its safety procedures. He declined to comment on

Boeing’s battery use.

(Reporting by Deepa Seetharaman; Additional reporting by Ben

Klayman; Writing by Ben Berkowitz; Editing by Lisa Shumaker)