Top tier manufacturers of rechargeable batteries, particularly lithium-ion (Li-Ion) and lithium-polymer batteries, are concerned with the damaging effects of counterfeit batteries. There are inherent hazards in the operation of Li-Ion batteries in that if they are over-charged, charged too quickly, or otherwise used beyond their rated capabilities, the batteries can over-heat. Overheated batteries can melt the surrounding housing or nearby items in the devices they are powering. In the worst case, the batteries can catch fire or explode.
As counterfeit batteries can be more cheaply manufactured without the appropriate quality checks in place, the top tier battery manufactures are concerned that their brands will be tarnished if consumers believe that the overheating batteries originated from the top tier manufacturers. This could ruin a manufacturer's public image. In addition, world transportation organizations are concerned that counterfeit batteries could catch fire or explode while being used in commercial airplanes. Indeed, there is a real possibility that rechargeable external battery packs (Power Banks) will not being allowed on flights.
The top tier manufacturers have already begun to place identification marks on their batteries to reduce the chances of being counterfeited. These schemes, however, currently involve markings with special paper, which can be circumvented by counterfeiters. Therefore, it is desirable to have a way to authenticate batteries so that counterfeit batteries and their associated problems can be avoided.