lithium is one of the Alkali Metals, and is highly reactive. if the battery is damaged, you should put it in a metal bucket of sand, cover the battery with more sand, and rest a metal plate on top to cover the bucket, and keep it outside. while lithium doesn't react as vigorously with water as sodium or potassium, it is from the same group of elements and should be treated with a lot of respect. the lithium/water reaction releases hydrogen gas, which is a fire hazard. the reaction can take place with humid air, and the reaction creates enough heat to self-ignite the hydrogen, this is why it must be kept outside. if kept indoors, a buildup of hydrogen gas and any spark can cause a fire. outdoors, any hydrogen escaping from the battery gets dispersed and is not a hazard.