"All vulnerable scooters were quickly removed from circulation, minimally impacting service to our Los Angeles, San Diego and Lake Tahoe markets," the company said in the statement. "At no time were riders or members of the public put at risk."
At the same time, the company acknowledged that it may face continuing challenges.
It said it has received an unconfirmed report that another scooter model it uses "may also be vulnerable to battery failure."
And it said that, in an unrelated issue, it is exploring whether some of its scooters "can sometimes break when subjected to repeated abuse". The company said it's possible for these scooters "to crack or break if ridden off a curb at high speed. "
Before Lime's statement, some employees raised concerns internally about whether the company was doing enough to address safety risks with its scooters, according to a Lime mechanic, speaking on the condition of anonymity because the employee still works for the company.
The mechanic provided images of internal Slack messages in which another employee also raises concerns.
I feel that these scoots, or the product as a whole, should be removed from the market until they are safe to handle and operate
"I feel that these scoots, or the product as a whole, should be removed from the market until they are safe to handle and operate," wrote the other employee in the "mechanics" slack room. "I get that the scoots are expendable and replaceable, but are we now resigned to say the same for the safety of employees and customers?"
On one occasion, the Lake Tahoe Fire Department was summoned to the company's Lake Tahoe facility in August after a scooter burst into flames, according to a department report.
Like much of its competition, Lime has raced across the country in recent months, depositing their vehicles in dozens of cities. Scooter start-ups have become powerful forces at the local level, pushing city officials to rewrite regulations with promises of valuable data-sharing and less traffic.
But the companies' rapid growth has come at a price, according to critics.
Emergency room physicians have reported an uptick in severe injuries - including head trauma and broken bones - since electric scooters appeared on streets around the country.
Critics have raised concerns that some scooter companies have failed to properly maintain their vehicles, most of which were designed for personal, but not widespread public use.
In response to criticism, the scooter industry has emphasised that safety is its top priority and that cars cause far more deaths and injuries than scooters.
"Scooters are a new mode of transportation and Lime, together with the micro-mobility industry, remains committed to ensuring everyone knows how to ride safely," Lime said in the statement.
Lime said the battery issue concerned a brand of scooter manufactured by the mobility company Segway Ninebot. (Segway did not respond to requests for comment.) Lime said some of the welding surrounding the battery may have had weak spots, causing the batteries to short.
External cases that hold Lime scooter batteries often sustain damage from vehicles hitting the ground and colliding with objects.
While saying he's unable to make a determination without examining the battery directly, Tim Ellis - a metallurgical engineer whose company, RSR Technologies, specialises in recycling batteries - said that damage could make a lithium ion battery more prone to catching on fire.
"Anything you do that mechanically juggles, vibrates, bangs or runs into things will absolutely enhance the possibility of failure," Ellis said. "The box the battery is in looks really heavy. That suggests it can handle a huge amount of damage, but at some level everything breaks. "