Earlier quoted context omitted.
Translation of the cited statement by the Lufthansa spokesperson: “ Baggage trackers belong to the category of Portable Electronic Devices and are therefore subject to the Dangerous Goods regulations issued by the International Civil Aviation Organization for carriage in aircraft. Accordingly, the trackers must be deactivated during the flight due to their transmission function, similar to cell phones, laptops, table…
So do cargo monitoring (temperature/tilt/vibration/tampering) devices, which are in a lot of commercial cargo - especially vaccine shipments, but any sort of sensitive equipment being air-freighted. So do wireless earbuds, watches both smart and "dumb", hearing aides, sport sensors including chest heartrate monitors and bike sensors/computers, travel alarms, book lights, e-readers, keychain flashlights, film cameras,…
Whether they actually enforce that regulation in any way remains to be seen, but they couldn't have given any other answer (or else risk being investigated by civil aviation authorities for not properly observing existing flight safety rules).
If you want to convince anyone that they should allow lithium batteries with some particular characteristics to be used in devices that are not turned on, you don't have to convince Lufthansa or any other airline, you have to convince the ICAO and/or national civil aviation bodies, since it's their rule that Lufthansa was citing.