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You are both incorrect: thermal runaway can occur and cause a fire whenever there is oxygen present in the environment (whether self-generated in the chemistry or ambient). The result can still be fire although the intensity is far greater when oxygen is produced by the chemistry.Sorry Tom but Terry is right ... the accepted definition of thermal runaway is where the fire is driven by self-combustion. With an LFP fire, throw over a fire blanket and it'll go out quite quickly - with an NMC fire a fire blanket will do little, as the Cobalt in the NMC chemistry will generate Oxygen as it burns, so self-combusting and maintaining (if not accelerating) the fire.
LFP batteries can burn.