That's only for cabin luggage. In checked luggage, Lithium Ion batteries are completely banned. If a battery bursts into flames in the cabin, it can be handled with hopefully minimal damage. You do not want that to happen in the belly of the plane packed in closely between everyone else's luggage with no way of getting it contained until the planes lands.
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Interesting, that seems kinda unsafe to me. The one I checked was Ryanair, they fully prohibit batteries in checked luggage