That's not to say Li-ion batteries are ideal, but right now, at this moment in time, this is probably the only way of achieving a solution in under 6 months.
I believe the newer Glass batteries [1] will be the long term solution for this type of installation, but they are some years off, and South Australia has a problem that needs solving this year.
[1] http://spectrum.ieee.org/energywise/energy/renewables/does-n...
I don't think there is such a thing as a less flammable alternative, ultimately you're storing a lot of energy. Energy means potential for fire.
Finally, I doubt these have the same chemistry as what they're putting in cars. There are a lot of Li-ion chemistries that are suited to different applications. It's more of a class of chemistries than a single specific one. Some Li-ion chemistries are cheaper and heavier than others but have longer lifetimes.