Ten fire engines and around 70 firefighters tackled a fire at a scrap metal recycling yard on Thames Road in Silvertown.
Several tonnes of scrap metal were alight. A scrap metal stack was destroyed by the fire. There were no reports of any injuries.
Crews remained on scene throughout the morning and into the afternoon.
Station Commander Kevin Morgan, who was at the scene, said: "This fire produced large amounts of smoke. Because of smoke travel in the area, we asked people living and working close by, as well as in parts of east London, to keep their windows and doors shut."
A scientific advisor attended the scene to monitor the air quality to ensure action could be taken if the air quality, as a result of the fire, got worse.
The fire is believed to have been accidental and caused by the failure of a lithium-ion battery.
A London Fire Brigade spokesperson said: "Lithium batteries should not be placed in the same bins as your regular rubbish or recycling. If they overheat, they may cause it to catch fire. Instead, check your local authority's website for the safest way to dispose of lithium batteries in your area.
"Lithium batteries store a significant amount of energy in a very small space and are much more powerful compared to other types of batteries. If that energy is released in an uncontrolled way, then a fire or explosion may result.
"Batteries can present a fire risk if they're overcharged, short circuited, submerged in water or damaged, so it's really important to protect them against being crushed and dispose of them safely."
Our 999 Control Officers received a number of calls regarding the fire, as well as from members of the public reporting the sight or smell of smoke in other parts of Newham and east London. Although these calls were linked to this fire, it's important that you do call us if you suspect there may be a fire in your area.
The Brigade was called at 0433 and the fire was under control by 0910. Crews from Plaistow, East Ham, Poplar, Stratford and surrounding fire stations attended the scene. A 32-metre turntable ladder from Greenwich Fire Station was used as a water tower to fight the fire from above. The drone team also attended to provide assistance.