Is there any chemical or element that would interfere or cancel the reaction of a lithium fire?
Not a chemist, but I flipped a coin before going to university and that was one of the choices...
Lithium "burning" is actually oxidation (we call iron oxidation "rust"). The problem with Lithium is that it is highly reactive, to the point where it can rip apart water (H2O) to get at the oxygen. Also the recation is very exothermic (gives off heat).
Smothering Lithium to remove the oxygen is the best way. A sealed container will help limit the oxygen it can get, as long as it stays closed of course! Using a second container is a good idea too.
In the lab, Lithium and other volatile metals are usually stored in mineral oil or kerosene, though the containers have to be completely full as they tend to float. This container is then stored in another air-tight container, sometimes with a dessicant like silica gel (removes water from the air).
-- Andrew E. Mileski Ottawa, Canada http://isoar.ca/
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