The blaze took place shortly before 1pm local time in Spain following a suspected explosion from the pit box of battery supplier WAE (formerly known as Williams Advanced Engineering).
Team personnel were immediately evacuated as the area was cordoned off at the Circuit Ricardo Tormo.
Formula E confirmed that the fire had been contained but that "one person has been assessed by medics and has been transported to hospital for precautionary checks".
Shortly after 3pm local time, organisers of the all-electric championship confirmed that no further running would take place on Tuesday with a decision set to be made on if the remainder of the test will continue this week.
The statement read: "Following the incident earlier today, the FIA have advised Formula E and all teams that on-track activities have been cancelled for the rest of the day.
This will allow for the area to return to safe working conditions. Further updates will be shared in due course."
Mitch Evans set the fastest time for Jaguar in this morning's session from Porsche's Antonio Felix da Costa.
