Ten fire engines and around 70 firefighters tackled a fire at a metal recycling plant on Factory Road in North Woolwich.
Around 10 tonnes of scrap metal in open air was alight. There were no reports of any injuries.
Residents in the area were advised to keep their doors and windows shut due to the heavy amount of smoke in the area.
The fire is being treated as accidental and the most probable cause is the failure of a lithium battery.
A London Fire Brigade spokesperson said: "Discarding batteries into household waste can be the cause of fires in both waste collection vehicles and waste transfer sites. We would always encourage people to ensure they are discarding batteries and electrical items safely and responsibly by using recycling schemes or at approved local authority refuse centres.
"We are especially concerned about fires involving lithium-batteries, which we are seeing an increase in and which can be very serious. These types of batteries are now incorporated in many smaller household electrical items such as toothbrushes, toys, radios and torches.
"In particular we have seen a rise in fires involving lithium-ion batteries for e-bikes and e-scooters, including in homes. If there is a fire in your home, you should never try and tackle it yourself. Get out, stay out and call 999."
The Brigade's 999 Control Officers received 28 calls about the fire.
The Brigade was called at 1623 and the fire was under control by 1934. Fire crews from Plaistow, East Ham, Barking and surrounding fire stations attended the scene.