A portable rechargeable lantern capable of use in an explosive environment includes light emitting diode light source, fault tolerant circuitry, a rechargeable battery and a charging circuit that receives power from an external charger via an induction coil. Formed within a sealed housing, the induction coil charging system eliminates external metal contacts, thereby eliminating a potential ignition source during charging operations. Fault tolerant circuitry and a cool-running light emitting diode light source eliminate potential ignition sources due to breakage or fault conditions. Mating surfaces between the lantern and its charger cradle facilitate aligning the charging induction coils.