Undamaged lithium batteries do not go up in flames, damaged batteries can (and one in every 300,000 or so lithium batteries can be damaged).
Damaged petrol tanks can also go up in flames - we accept that. The question is really do more lithium batteries go up in flames compared with petrol tanks (i.e. with many things like this we accept the risk if we consider the chances of it happening are low enough). Time will tell, but the statistics don't look all that bad for EVs so far. But they are emphasized in the press - a petrol or gas vehicle catching fire is no longer news (remember how the press was focused on vehicle gas fires when gas first became popular).
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Talking in numbers, on an average, gas station fires cause 48 civilian injuries, 2 civilian deaths, and $20 million in property damage every year in the USA, and 61% of these involve vehicles. In 2021, there were around 174,000 highway vehicle fires reported in the United States. (which has dropped from 3 times that number 30 years despite an increase in cars on the road).