WASHINGTON -- Airline passengers will no longer be able to pack loose lithium batteries in checked luggage starting Jan. 1 due to fire risks, according to a release from the U.S. Department of Transportation.

Lithium batteries can overheat and ignite in certain conditions.

Passengers will still be able to pack batteries in checked bags if they are installed in electronic devices or in carry-on luggage if they are stored in plastic bags, according to the new federal safety rule.

Consumer electronics such as cameras, cell phones and most laptops are still allowed, but passengers can bring only two extended-life spare-rechargeable lithium batteries for these devices in carry-on baggage under the rule.

The FAA has found that current systems for putting out aircraft cargo fires could not suppress a fire if a shipment of non-rechargeable batteries ignited during flight, the release said.