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Can I use the prototype or low production provision to avoid UN38.3 testing?

In some cases, yes.  If a lithium battery is able to meet the definition of “Low production” (“An annual production runs consisting of not more than 100 lithium batteries.”), it can avoid the UN38.3 testing requirements.  However, the battery and the equipment it powers (if the battery is shipped installed in the equipment) will always need to be shipped as a fully-regulated, Class 9 hazardous material.  Because prototype lithium batteries can only be shipped for purposes of testing, it is impractical to avoid UN38.3 testing for long periods of time for these types of batteries.