Effective January 1, 2008, traveler may no longer pack spare lithium batteries of any kind in checked baggage.
Passengers wishing to carry spare lithium batteries for devices such as laptops, cell phone and cameras are now required to pack them in their carry-on baggage with the terminals covered/insulated or stored in plastic bags.
Travelers may check bags that contain batteries, as long as they are installed in electronic devices.
Lithium batteries found during the screening process may be removed by the TSA. Confiscated batteries should be treated as UDG/undeclared dangerous goods and properly reported and logged for the FAA.
This rule is enforced by the DOT as a harzardous materials regulation and is not a TSA rule.