The Li-Ion batteries came from an almost new battery pack on a laptop, I know they are good.
Using a Li-Ion battery in a circuit doesn't need to be more hazardous than using a cellphone or a laptop PC.
If some types of Li-Ion batteries overheat and leak electrolyte, don't clean up the electrolyte released with water, some Li-Ion electrolytes will release hydrogen fluoride gas when coming in contact with water.
I understand that if I am careful with the battery, especially with soldering to the terminal tabs, careful handling, insulating the battery contacts/connections to protect it from shorts, watch out for over charging,
If I am careful, I don't have to have any more worry than using my laptop. The very low power generated by the bike wheel magnet-coil generator is easy enough to keep within safe voltage limits.
If I use a thin piece of hookup wire (#30) to connect the battery to my PCB, the wire itself will serve as a protective fuse in the case of a short.
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Thank you all for allowing me to remind myself of the dangers of this hobby.
There are many hazards with electronics and I am aware of them:
Soldering flux fumes, even in tiny amounts, especially with skin contact or inhalation, some water-soluble soldering flux fluids or its fumes,fluxes can cause violent allergic, or respiratory reactions, and even a short exposure can cause lasting damage the eyes, skin, lungs, cause cataracts, blurring of vision, from temporary blurring of vision to prolonged exposure causing changes to the eye, permanent astigmatism, non-water cleanup fluxes always can cause eye and lung irritation, prolonged exposure can cause asthma, etc.
Lead ingestion from soldering fumes damages the nervous system and other parts of the body, but soldering flux can be even more dangerous.
Contact with soldering irons can cause serious burns.
Fumes from charging or shorted lead acid batteries can create hydrogen gas and risk of explosions.
Fumes form burning plastic wire insulation can be very toxic and release fluorine(Teflon) or chlorine gas(vinyl insulation).
Cleaning fluids like MEK or TCE etc. can over time turn your liver into a cancerous sponge.
Contact cleaning foaming agents can cause lung irritation, asthma.
Glues and spray paints contain dangerous solvents, i.e. toluene, that can be inhaled and sicken and intoxicate, cause hallucinations.
Epoxies can cause a life-long skin or eye sensitization leading to life-long episodes of painful inflammation over the years to come.
Superglue can glue your fingers together.
Burning selenium rectifiers can give you an overdose of selenium fumes.
Electrolytic capacitors when subjected to over-voltage or excess AC current, especially tantalum or liquid electrolyte aluminum types, or when somehow reversed in polarity in a powered circuit can explode like a firecracker or take off like a rocket and the fumes are no doubt also toxic. Fast traveling exploded electrolytic cap cases can hit you in the eye.
Burnt PCB fiberglass or pthalates as in perfboard, or burning resistor fumes, over-heated transformer impregnation fumes, smoked IC's or semiconductor cases..these also are no doubt toxic.
Going through a collection of screws and bolts to find the one you need: cadmium and other toxic heavy metals rub off onto the skin.
Grinding things, sanding, PCB drilling, sawing, working with materials can cause flying metal pieces, can release inhalable micro-particulates that can enter and stay in your lungs, especially take care when working with fiberglass, tungsten and beryllium or many other exotic metal containing parts.
Some batteries or lamps or fast switching relays contain mercury or cadmium.
Vacuum tubes contain extremely dangerous thorium in their heaters.
Neon bulbs use radioactive elements.
High voltages can generate X-rays.
Very high magnetic fields can cause changes in the brain.
Over-heated components on a circuit board, hot parts can cause burns.
Very strong magnets can cause pinching injuries.
Rare earth magnets can poison you when handled or drilled or grinded.
Hand tools can cause skin cuts and other bodily injuries.
Trying to place tiny SMD components on a PCB and getting them to stay in place before soldering can cause a nervous breakdown.
Electricity can cause dangerous shock, broken bones or other injury from involuntary muscle contractions, and even possibly death.
Even sitting down for extended periods without getting up for a break can acutely damage the legs, its nervous and vascular system, causes a deterioration, and even if a long sitting session is followed by a long workout at the gym, the damage remains.
Sipping aerosol whip cream while working at the test bench can expose one to nitrous oxide and bouts of hilarity.
Did I forget anything?
But if one exercises reasonable caution, isn't electronics fun?