Lithium-ion batteries are susceptible to fires and explosions due to thermal runaway, a serious safety hazard. This study explores the potential of using hydrated inorganic salt (TCM40) composite phase change materials to prevent thermal runaway in battery packs. TCM40 composites stand out due to their exceptional thermochemical heat storage capacity, which allows them to effectively absorb excess heat during runaway events. The research investigates how thermal conductivity, thermal storage capacity, and cell spacing influence the propagation of thermal runaway. The findings demonstrate that TCM40 composites, with a thermal storage density exceeding 1000 kJ/kg, are significantly more effective in preventing thermal runaway compared to traditional latent heat storage phase change materials with lower capacities. To gain a comprehensive understanding of thermal runaway mitigation, a combined thermal management model was developed. This model integrates a battery thermal runaway model with a kinetic model describing the decomposition of TCM40 composites. The analysis reveals that the high heat absorption capability of TCM40 composites minimizes heat transfer to neighboring cells during thermal runaway. Furthermore, the model provides valuable insights into the synergistic effects of thermal conductivity and heat storage capacity on runaway propagation. This knowledge can be directly applied to design safer battery packs, even for compact configurations where cell spacing is less than 2 mm. This study offers significant advancements in both thermal protection materials and design strategies for lithium-ion battery packs. These advancements have the potential to significantly improve battery system safety and minimize the risk of explosions.