Some batteries that power a popular brand of e-bike pose a fire hazard that can cause serious injury or death and shouldn't be used, the Consumer Product Safety Commission (CPSC) said in a notice Monday.

The commission is warning customers to immediately stop using lithium-ion batteries that power e-bikes made by Seattle, Washington-based Rad Power Bikes. The batteries can ignite and explode, causing serious injury or death, the agency warned.

Rad Power Bikes said it disagreed with the agency's warning.

"Rad Power Bikes firmly stands behind our batteries and our reputation as leaders in the e-bike industry, and strongly disagrees with the CPSC's characterization of certain Rad batteries as defective or unsafe," a Rad spokesperson said in a statement to CBS News.

The batteries that pose a fire hazard are model numbers are RP-1304 and HL-RP-S1304, according to the CPSC. They are particularly vulnerable to catching fire when they are exposed to water and also to what the commission describes as "debris."

CPSC said it has received 31 reports of the batteries causing fires, including 12 reports of fires that caused property damage. Cumulatively, accidents related to the batteries have caused roughly $734,500 in property damage, it said, adding that some of the incidents took place when a battery was neither charging nor in use.

CPSC is urging consumers to immediately stop using the batteries, which it said should be removed from the e-bikes and disposed of in accordance with local disposal procedures. It added that Rad Power Bikes has not agreed to recall the products.

Rad Power Bikes added that its bikes are equipped with batteries that it says "meet or exceed rigorous international safety standards."

Rad said it tested its batteries at independent third-party labs, which confirmed that the batteries met the industry's highest standards.

"Our understanding is that the CPSC does not dispute the conclusions of these tests," a Rad spokesperson added in a statement to CBS News.

Rad also pointed out that all lithium-ion batteries can catch fire if they are improperly charged or mishandled, and that Rad advises against misusing them in its customer safety guides.

Rad added that it had hoped to work with the CPSC to help its customers upgrade to the company's "Safe Shield" batteries, which incorporate new technology, at a discounted rate. Rad said the commission's request that Rad either offer replacement batteries or refunds to all consumers would put it out of business.

The batteries cost $550 alone, or between $1,500 and $2,000 when sold with e-bikes.

Rad did not indicate how many products are affected by the CPSC's notice when asked by CBS News.

The batteries were sold with the following Rad Power Bikes e-bike models on RadPowerBikes.com, at Best Buy stores and other bicycle retailers across the U.S.:

o RadWagon 4
o RadCity HS 4
o RadRover High Step 5
o RadCity Step Thru 3
o RadRover Step Thru 1
o RadRunner 2
o RadRunner 1
o RadRunner Plus
o RadExpand 5

Source