Recycling, hallelujah
Reducing mineral demand, hallelujah
Reusing and repurposing batteries, hallelujah
Committing to a clean energy future, hallelujah
Last week, Colorado made history by enacting the first electric- and hybrid-vehicle battery recycling policy in the United States. This policy, signed into law by Governor Polis, requires mineral recovery, mandates reporting, and reduces obstacles to battery reuse. It aims to set a precedent for other states across the nation.
Electric vehicles (EVs) are key to decreasing global warming pollution and cutting down on toxic emissions, consistently outperforming fossil-fuel vehicles. However, environmental responsibility extends beyond emissions, requiring us to reuse, repurpose, and recycle vehicle batteries to fully decarbonize and minimize our environmental footprint.
Colorado’s policy mandates the recycling and recovery of lithium, cobalt, and nickel from used batteries, ensuring these minerals can be reused in future EVs. Research by the Union of Concerned Scientists (UCS) indicates that adopting recycling and additional strategies nationwide could fulfill about half of the future demand for lithium in EV batteries with domestic recycled content by 2050, leading to reduced mining, lower emissions, safer communities, and more job opportunities in the U.S.
Over the past nine months, UCS, in collaboration with Western Resource Advocates, has been educating Colorado’s decision-makers on the benefits of recycling and effective policy elements. With efforts led by Senators Cutter and Wallace, the policy’s progress is a reason for celebration.
However, the work is not yet complete. States like California, Florida, Massachusetts, Nevada, New Mexico, and Washington have all proposed similar bills, but none have been successfully enacted. California’s SB 615, introduced by Senator Allen, closely mirrors Colorado’s law. Support from both environmental organizations and industry in Colorado highlights the need for a well-considered policy that addresses stakeholders’ needs. The opportunity is ripe for other states to adopt this policy, fostering market alignment and stability.
Battery recycling means a stronger EV future
UCS is dedicated to advocating for this initiative because recycling is fundamental to developing a robust and environmentally friendly EV future. The Colorado law emerged from extensive negotiations with industry and environmental partners, resulting in a framework that benefits Colorado’s communities, EV automakers, recyclers, and automotive dismantlers. Industry stakeholders acknowledge that without structured solutions, batteries might not be fully recycled, and mineral recovery could be compromised. By collaborating, stakeholders can maximize both environmental and economic benefits.
The Alliance for Automotive Innovation, representing traditional automotive companies, endorsed the Colorado bill, recognizing its advantages. Nick Steingart, director of state affairs for the Alliance, stated, “This balanced policy approach helps return used EV battery critical minerals to the supply chain, reducing the need for new mineral extraction. By encouraging domestic reuse and recycling of EV batteries, we can create a more resilient local critical mineral supply chain that supports the automotive industrial base and American economic security.”
What does Colorado’s EV battery recycling law do?
The Colorado law advances reuse and recycling goals through various mechanisms:
- Extended producer responsibility. Automakers are required to reuse, repurpose, and recycle batteries they have, as well as those not needed by downstream industries. Entities handling EVs and batteries at the end of their lifecycle (like dismantlers and scrap yards) can either reuse or recycle these batteries, or have automakers collect them free of charge.
- Mineral recovery. By 2031, recyclers must recover 90% of nickel and cobalt, and 50% of lithium, increasing to 80% by 2036, in intermediate form (also known as black mass). These rates effectively discourage the use of high-emission, low-recovery smelting technologies.
- Labeling. Batteries must be labeled with essential information, including manufacturer details, battery chemistry, capacity, hazardous substances, and recall information, to enhance recycling efficiency.
- Battery health transparency. While in the vehicle, a third party must have access to battery health information, including charging capacity, and document its state of health to assist downstream entities in determining its suitability for reuse or repurposing.
- Reporting. Automakers must report battery collection and recycling details to the state, including the number of batteries collected, time until pickup, reasons for non-collection, recycling recovery rates, form of recovered materials, and percentages of batteries reused, repurposed, and recycled.
- Funding. Automakers are responsible for covering regulators’ costs to ensure proper state oversight.
- Survey of effectiveness. The state is required to conduct surveys to assess the program’s effectiveness and identify any areas needing improvement.
The policy’s major achievements include holding automakers accountable for unwanted batteries and mandating the recovery of key minerals regardless of market prices. This centralized approach allows regulators to enforce laws more efficiently and ensures the return of minerals to the supply chain.
California, are you next?
California initiated discussions on this issue in 2019, making significant progress by forming an advisory group and publishing a report. Given the high volume of EV sales in the state, the potential environmental and economic benefits of reusing and recycling California’s EV batteries are substantial.
Senate Bill 615 built on this work, proposing a framework to hold producers accountable for recycling EV batteries they market. While the bill passed the legislature in 2024, it was vetoed by Governor Newsom, citing its deviation from the standard producer responsibility format. UCS supports a unique approach tailored to the specific needs of EV batteries, considering safety and market dynamics.
In California, “extended producer responsibility” applies to various products, including textiles, packaging, mattresses, carpets, paint, pharmaceuticals, sharps, and consumer electronics, which are typically low-value and unlikely to be recycled, with some posing safety risks if improperly disposed of.
EV batteries share some characteristics with these products: some are prone to recycling, while others are not, but all present risks if improperly stored or disposed of. Due to these complexities, California has spent six years refining its approach, resulting in a policy designed to provide a safety net when market forces fall short.
Automakers must take responsibility for batteries that are damaged or lack high-value minerals. The modified framework ensures automakers handle the collection and recycling of unwanted batteries, mitigating risks associated with improper disposal or storage, such as fires and resource wastage.
Moreover, batteries suitable for reuse or repurposing in other vehicles or as stationary storage create market opportunities. Some batteries contain valuable minerals like nickel and cobalt, attracting recyclers willing to pay for them. When market demand is absent, the automaker must manage collection and recycling.
Ultimately, EV battery recycling requirements aim to minimize mining, reduce environmental impacts, protect communities from potential fires due to improper battery storage or disposal, and bolster the US economy.
