Battery technology is crucial in the transition towards electric mobility. Lithium-ion batteries are conquering the market but are facing fire safety risks that might threaten further applications. In this study, we address the problem and potential solutions for traction batteries in the European Union area. We do so by taking a unique socio-technical system perspective. Therefore, a novel, mixed-method approach is applied, combining literature review; stakeholder interviews; Failure Mode, Mechanisms, and Event Analysis (FMMEA); and rapid prototyping. Our findings confirm that fire safety is an upcoming concern. Still, most stakeholders lack a full understanding of the problem. Improving safety is a shared responsibility among supply chain and societal stakeholders. For automotive applications, voluntary standard-setting on safety risks is an appropriate tool to improve fire safety, whereas for niche applications, a top-down approach setting regulations seems more suited. For both groups, the adaptation of battery pack designs to prevent thermal runaway propagation is shown to be promising from a technological, practical, and organizational perspective. The chosen mixed-method approach allowed for a holistic analysis of the problems and potential solutions. As such, it can serve as an empowerment strategy for stakeholders in the field, stimulating further discussion, agenda building, and action.