Fires at Scrap Yards: Causes and How to Prevent Them

 

 

Scrap yard fires used to be a once-a-year worst-case scenario. Now they happen across Ontario and the rest of Canada multiple times a month.

 

In Hamilton alone, recent years have seen multiple-alarm fires at scrap yards on Parkdale Avenue North, including a 2023 blaze that caused $150,000 to $200,000 in damage and spread to an adjacent home’s fence and garage. American Iron and Metal (AIM Recycling) at Parkdale and Burlington Street has also had multiple fire incidents that sent smoke plumes across the downtown core, prompting Ontario Ministry of the Environment air quality testing (source: Global News, CHCH).

 

Across North America, publicly reported fires at waste and recycling facilities hit a record 430 incidents in 2024, up from 373 in 2023 and 272 in 2016, a 58% increase in nine years (source: Fire Rover, via Resource Recycling).

 

For a scrap yard operator in Hamilton or anywhere in Ontario, that is not just bad news. That is your insurance premium, your downtime, your workers’ safety, and your reputation, all in one statistic.

 

This article breaks down why scrap yard fires are increasing, what is causing them, and what actually works to prevent them.

The Quick Take

Most scrap yard fires today come from one source the industry did not have to worry about ten years ago: lithium-ion batteries. Add the traditional risks (fuel, oils, sparks, propane tanks, tires) and you get a perfect ignition environment.

 

Prevention is no longer a single fix. It is a layered system of inspection, separation, detection technology, and trained staff.

Scrap Yard Fires Are Trending the Wrong Way

The numbers tell the story.

 

YearReported Waste & Recycling Facility Fires (US/Canada)Year-Over-Year Change
2016272Baseline
2023373Down 4%
2024430Up 15%
Q1 2025104Record first quarter

 

Source: Fire Rover annual reports

 

The Canadian picture is just as alarming:

 

 

A few things stand out.

 

First, 2023 looked like progress. The industry was rolling out detection systems and public education. Then 2024 wiped out the gains.

 

Second, Q1 2025 already broke records. Fires used to slow down in winter. That pattern is gone.

 

Third, this is only the publicly reported number. Most facilities are unprotected, and most small fires never make the news.

The Main Causes of Scrap Yard Fires

Lithium-Ion Batteries Are The Top Threat

Lithium-ion batteries are the single largest fire risk in scrap recycling today.

 

They show up hidden inside:

 

 

When these batteries get punctured, crushed, or shorted during shredding or compacting, they enter thermal runaway: a self-sustaining chemical reaction that generates intense heat and ignites everything around it.

 

Ontario Fire Marshal Jon Pegg put it bluntly: “When they fail, they can unleash a chain reaction that results in an intense fire that can spread in seconds, release toxic smoke, and make escape incredibly difficult.”

 

The scale of the problem is hard to overstate. An estimated 1.2 billion disposable vapes enter waste and recycling streams every year, almost all of them containing lithium-ion cells with no widely available drop-off program.

 

Recycle Your Batteries, Canada! drop-off locations exist across Ontario, but consumer awareness is still catching up. Batteries under 5 kg can go to retail drop-offs (The Home Depot, etc.). Batteries over 5 kg need to go to a municipal hazardous waste depot. Hamilton operates Community Recycling Centres on Mountain (1313 Upper Ottawa St.) and Dundas (171 Lower Lions Club Rd.) for hazardous waste drop-off.

Vehicle Components and Residual Fluids

End-of-life vehicles bring a long list of fire fuel onto the yard, even after fluids are supposedly drained.

 

Vehicle HazardRisk
Gasoline, oil, coolant residueIgnites from sparks or heat
Plastics, foam, paint, rubberHigh fuel load, toxic smoke
Magnesium engine partsBurns hot, reacts violently with water
12V batteriesCan short and spark
EV battery packsThermal runaway, hard to extinguish

 

Magnesium is especially dangerous because standard firefighting tactics make it worse. Pouring water on burning magnesium can intensify the reaction.

Sparks from Cutting, Shredding, and Equipment

Torch cutting, grinders, balers, and shredders all generate sparks and friction heat. Land that on oily rags, foam, paper, or dried grass and you have a fire in seconds.

 

Shredder feed is the highest-risk operation in the yard. Shredding is exactly what damages hidden batteries and pressurized containers worst.

Self-Heating in Stored Piles

Big piles of mixed scrap can ignite on their own. Decomposing organics, metal oxidation, and trapped heat raise internal temperatures beyond ignition thresholds without any external spark.

 

The 2023 Parkdale Avenue fire in east Hamilton showed exactly this pattern. Crews found multiple scrap vehicles ignited in the yard at 2 a.m., with no obvious external cause. By the time they arrived, the radiant heat had already set fire to a neighbouring backyard fence and garage.

Pressurized Containers

Propane tanks, aerosol cans, fuel canisters, and old chemical drums sneak into loads constantly. Crush or heat them and you get a fast-spread fire or an outright explosion.

Tires, Paper, Rags

Tires burn at extremely high temperatures and release toxic smoke. Ontario regulations limit how many can be stored on a single site for exactly this reason. Paper, cardboard, oily rags, and wood pallets are quick-ignition fuel that helps small fires become big ones.

Human Error

Cigarette butts, lighters left in pockets, hot work without a fire watch, and lazy housekeeping still cause a measurable share of scrap yard fires. Equipment cannot fix culture.

The Real Cost of a Scrap Yard Fire

Operators sometimes underestimate the damage because the metal is still there afterward. The actual cost runs much deeper.

 

Cost CategoryTypical Impact
Equipment damageShredders, loaders, conveyors often total losses
Operational downtimeDays to weeks of shutdown
Insurance premiumsSharp hikes, sometimes policy non-renewal
Environmental finesMECP enforcement on runoff into Hamilton Harbour or local creeks
Worker and responder injuries6% of 2024 incidents involved injury or death
Site contaminationHeavy metals, PFAS, hydrocarbons left behind
Community pushbackAir quality complaints, zoning challenges
Property damageHamilton fires have spread to neighbouring homes

 

Post-fire contamination is its own problem. Lithium-ion battery byproducts can corrode metal at extreme rates and leave behind hazardous residue. A Toronto-area investigation cited by industry experts found that after a single residential lithium battery fire, the home showed corrosion in outlets, tools, and the HVAC system within days. The same byproducts hit a scrap yard much harder.

 

After a serious fire, sites often need professional biohazard and contamination cleanup before they can safely resume operations.

How to Prevent Scrap Yard Fires

No single solution works. The yards that stay safe layer multiple defences.

1. Inspect Every Incoming Load

A fire that starts at intake should have been caught at the gate.

 

2. Isolate Lithium-Ion Batteries Immediately

Treat every battery you find as a live ignition source.

 

3. Manage Pile Size and Spacing

Smaller piles burn smaller. Industry guidance recommends:

 

4. Invest in Early Detection

Standard fire alarms trigger after the fire is already established. Thermal imaging and remote-monitored detection systems catch heat anomalies before flames appear.

 

5. Walk the Yard Daily

Cameras catch what people miss. People catch what cameras miss.

 

Set a fixed schedule for supervisors to walk piles looking for smoke, steam, heat shimmer, or unusual smells. The first ten minutes of a fire is everything. The 2023 east Hamilton fire on Parkdale Ave was first spotted at 2 a.m., long after it had taken hold. Earlier detection would have saved the neighbouring property.

6. Control Hot Work

7. Plan Water Supply Before You Need It

Many scrap yards sit at the end of municipal water mains. Confirm flow rates, hydrant locations, and access routes with Hamilton Fire Department or your local fire service now, not during an incident.

8. Train Staff Repeatedly

One-time training does not stick. Run sessions multiple times per year covering:

 

9. Build a Relationship with Hamilton Fire Department

Invite fire crews to walk your yard before they ever respond to a call. Share your site plan, hazard map, water supply, and access points. Pre-incident familiarity cuts response time and can save lives.

10. Follow the Ontario Fire Code

Every scrap and recycling operation in Ontario is regulated under the Ontario Fire Code (Reg. 213/07 under the Fire Protection and Prevention Act). The Government of Ontario’s Office of the Fire Marshal publishes specific guidance on lithium-ion battery hazards, including that damaged batteries must be isolated from other combustibles and treated as immediately dangerous to life and health.

 

Compliance is not optional. The Ontario Fire Marshal investigates serious fires at commercial operations, and findings can affect your licensing, your insurance, and your ability to operate.

Quick Reference: Fire Prevention Checklist

AreaActionFrequency
Incoming loadsInspect for batteries, propane, aerosolsEvery load
Battery storageIsolate in non-combustible containersImmediate
Pile spacingMaintain 6+ feet between pilesOngoing
DetectionThermal imaging or remote monitoring24/7
Yard walksVisual check for smoke, heat, smellsMultiple times daily
Hot workFire watch activeEvery job
Staff trainingRefresher sessions3 to 4 times per year
Fire departmentSite walk-throughAnnually
Ontario Fire CodeCompliance auditAnnually

The Bottom Line

Scrap yard fires are not random bad luck. They are the predictable outcome of taking in flammable, pressurized, and battery-laden material in large volumes.

 

Lithium-ion batteries are not going away. Vehicle electrification, e-bikes, vapes, and consumer electronics keep growing in Hamilton and across Ontario, and those batteries keep ending up in scrap streams.

 

The yards still operating in five years will be the ones that invested now in:

 

 

Fire prevention at a scrap yard is not a one-time project. It is a daily operational discipline. The cost of doing it right is always less than the cost of cleaning up after a fire that should not have happened.