Sustainable or short-sighted?

In times wrought with uncertainty and disagreement, most agree we need to do better when it comes to the safe and eco-friendly disposal and recycling of all types of batteries.

For too long, an inability to enact protocols for end-of-life batteries has led to bottlenecks in the battery value chain and created significant regulatory and environmental consequences.

In our vehicles, the transition from lead-acid batteries to nickel-metal hydride, lithium-ion, lithium-ion phosphate, nickel-manganese-cobalt and solid-state batteries have brought advantages and opportunities but also looming challenges and risks.

The need for industry awareness

As responsible recyclers and stewards of sustainability, those in our industry must remain aware and current with the constantly changing political and socioeconomic landscapes. We also must educate the public and state legislatures about the real-time liabilities, risks and concerns that come with these batteries as we prepare for an eventual transition from the internal combustion engine vehicle to the battery-electric vehicle.

Currently The Automotive Recyclers Association (ARA), based in Manassas, Virginia, is tracking more than 250 bills related to the automotive recycling industry. Of these bills, about 25 percent specifically have to do with batteries, and they range from those looking to create advisory boards on how to proceed to others looking to create stewardship programs or to establish extended producer responsibility programs.

“Educating and reeducating The public and lawmakers is strengthening the position of the auto recycling industry.” — Brian Bachand, CEO, Westover Auto Salvage

The introduction of small to medium-format battery stewardship programs has been met with positive feedback.

Consumers and lawmakers recognize the need for viable and cost-effective recycling programs. These bills differ from state to state but are designed to collect a variety of batteries and create outlets for them.

States that have passed legislation include Washington, Maryland, Illinois, Vermont, Massachusetts and Colorado.

Differences lie between who owns the responsibility and liability and which resources can be called on to properly collect and dispose of these batteries. Taxpayers, manufacturers and other stakeholders are voicing their opinions about what is in their best interests and what makes the most financial sense. The growing number of these small-to-medium battery bills also has begun to influence proposed legislation for large-format and vehicle traction batteries.

California’s S.B. 615, which Gov. Gavin Newsom vetoed in late 2024, was reintroduced and amended in the Senate and House this year. This bill already has become a model for other states when it comes to regulating the responsible recycling of vehicle traction batteries.

The ARA, with immense effort from its Vice President of Strategy, Government and Regulatory Affairs Emil Nusbaum, has been involved in developing S.B. 615. As the newly appointed vice president of NAATBatt International, Longboat Key, Florida, Nusbaum and the association have advocated to include automotive recyclers at the table and for favorable language for them in the legislation, including advocating for implementing the ARA battery hierarchy into S.B. 615.

Industry acknowledgement

End-of-life vehicle battery management proposals are being introduced with this hierarchy at the forefront. This model positions the auto recycling industry as the first link and primary facilitator in the end-of-life battery value chain.

A number of traction and or vehicle battery bills include provisions that consider the automotive and scrap recycling sectors in the legislation process: Massachusetts’ H. 964, Florida’s S. 1630, Hawaii’s S.B. 103, Iowa’s H.F. 548, Missouri’s S.B. 593, New Jersey’s A. 1249, Washington’s S.B. 5586 and New Mexico’s H.B. 310.

Whether being convened in hearings, considered in committees or ceasing to move forward as in the cases of Florida’s S. 1630 and New Mexico’s H.B. 310, these proposed regulations have begun to open everyone’s eyes to the role of the recycling industry and the impact it has on commerce and circularity.

The devil in the details

How could these proposed state legislative actions affect auto recyclers going forward? That depends.

ARA constantly operates and engages in each state’s legislative process. The association is creating new relationships and lines of communication with the impact players that influence and shape the battery value chain. Educating and reeducating the public and lawmakers is strengthening the position of the auto recycling industry.

The ARA also is engaging the stakeholders and co-sponsors of federal legislation, such as H.R. 1264 and H.R. 2998, which relate to battery value chain management. These federal bills will have a greater impact but are based on state-level logistics.

The ARA is an advisor in the electric vehicle (EV) shift and an evolving thought-leader. How the auto recycling industry is represented in related legislation and the language used to describe the industry will determine the direction many in the industry will choose to go. ARA advocates for safe, professional and fair practices that consider the best interests of all auto recyclers. By being involved in the dialogue creating the foundation of battery recycling, ARA is helping to steer the direction of end-of-life vehicle battery recycling.

If legislation is allowed to stifle opportunities or to halt the progress of viable recycling outlets, markets will shift, and handling of batteries and electric vehicles will become more difficult to navigate and a burden to the recycling community. What can recyclers do if lawmakers do not consider the significance of the sector in the value chain? EVs, traction batteries and new battery types could suffer from increased risk aversion and even greater liability. Seeing funds drain from domestic battery manufacturing and recycling and OEM skepticism of EPR bills have been worrisome factors.

The negative connotations that come with increased fire risk along with market- and infrastructure-related supply and demand challenges have manufacturers, dealers, consumers and recyclers rethinking their next moves in the age of electrification, with many holding their collective breath given the state of the nation.

Industry involvement needed

What is the takeaway from what is going on in Congress? That is for each recycler to decide.

Whether you own a scrapyard, shred batteries or sell metals and used auto parts, the key is to stay aware and involved.

Keeping tabs on what is going on in the battery sector, especially the challenges and potential regulations, is paramount to understanding how your business will be affected. Realizing the tariff implications and understanding the trajectory of the metals markets will help you understand where the money is going. Following the money and seeing who is being funded and who is losing it will help to make sense of the immediate course. Watching how battery shipping and handling rules and regulations play out will help you stay current and could determine how you handle these commodities. Staying involved with state and national associations will keep your ear to ground and allow you to get a jump on preparing for and researching your next endeavor.

Whether that is to take more or less high-voltage vehicles or find new ways and methods to recycle newer battery types, information is power. The more data you can tap into, the better prepared you will be to decide what direction your business should move in.

“You cannot escape the responsibility of tomorrow by evading it today.” — Abraham Lincoln

Tracking the bills being proposed in Congress is a great way to stay current. Getting involved in the process and advocating for the direction the industry is moving in is a better way to ensure you’re part of its future. The ARA will continue to monitor these bill proposals and be active in the facilitation of this foundation. It is up to each recycler to hold up their end of the bargain by making sure safety and compliance are held in the utmost regard.

Standardization and innovation are needed to keep the metaphorical wheel turning. The feedback on and implementation of S.B. 615 will help gauge and influence upcoming states’ end-of-life battery management proposals along with the consideration of stakeholders and political demographics.

The ramifications of the discussed stewardship and EPR bills also will test the structure and language of possible legislation. Who and how it affects and the unforeseen variables or consequences that come about will sway the outcome and the public opinion. You can expect to see increased lobbying for control given the feeling of the lack of control many feel today, be it from the government, tariffs, political strife or market headwinds.

As Abraham Lincoln once said, “You cannot escape the responsibility of tomorrow by evading it today.”

Take accountability and continue to do what is right over what is easy. Continue to recycle your commodities safely and professionally. Create today’s sustainable solutions to yesterday’s end-of-life waste problems.

Brian Bachand is the CEO of Westover Auto Salvage, located in Belchertown, Massachusetts, and can be reached at westoverautosalvage01007@gmail.com.